Why financial advisors and CPAs don’t tell you about tax credits
If you’re a small business owner, chances are you’ve been asking yourself why you didn’t learn about tax credit programs sooner. After all, wouldn’t these programs be taught in accounting and financial courses in MBA programs? And if they were, why didn’t your trusted financial advisor or CPA tell you about them? The truth is, you (like many small business owners) were left in the dark and that’s the elephant in the room.
But before we discuss why the elephant is even here, let’s go over some facts first.
What Are Tax Credits?
Tax credits are incentives offered by the government to encourage businesses to engage in certain activities. For example, there may be a tax credit for businesses that hire employees from certain groups, or for businesses that invest in energy-efficient equipment.
There are a number of different tax credits available for small businesses, including but not limited to:
- The Small Business Health Care Tax Credit
- Research and Experimental Expenses Tax Credit
- Work Opportunity Tax Credit
- Disabled Access Credit
The eligibility requirements for each kind of tax credit vary. Make sure you read the specific details of each to know their full requirements. This is why it’s particularly important to turn to experts who specialize in the different tax credits as you don’t want to miss out on what you qualify for. You also don’t want to waste precious time and effort on applying for the credits that aren’t applicable to you.
How Do Tax Credits Help Small Businesses?
Tax credits can add to your bottom line because they save your business money. By taking advantage of available tax credits, you can reduce your tax liability and keep more of your hard-earned profits.
When you think about it, a tax credit is simply a reduction in the amount of taxes you owe. Unlike a deduction, which reduces the amount of income that is subject to taxation, a tax credit directly reduces the amount of taxes you owe. For example, if you owe $1,000 in taxes and have a $500 tax credit, your net tax liability would be $500.
Additionally, tax credits can make your business more competitive by leveling the playing field with larger businesses that have greater resources to take advantage of these programs. As a small business owner, it’s important to take advantage of every opportunity to save money to help with the financial success of your business.
Now that we have gone over what tax credits are and why they are important for your small business, why have your financial advisors and CPAs not mentioned what they are?
It’s not because they didn’t want you to save money or for your business to succeed. In fact, they actually have had your best interest at heart all along. Most financial professionals in the tax credit space are not pleasant to deal with. Chances are, your financial advisors and CPAs have had a hard time finding tax credit experts they could hang their hat on and rally behind because they haven’t found any they could trust. If they don’t trust a service provider, they won’t trust them with your business.
So then that begs the question…who can you trust? Who can you go to when you have questions on tax incentives and tax credits? And how do you figure out what tax credits your business qualifies for and how much money you stand to save?
You need to do everything in your power to make sure your business stays afloat and one of the strategies is to take advantage of tax credits. When you know about all the different ways to get money back from the government, you can keep more cash within your business account. This allows you to reinvest in other areas or even pocket the extra cash.
This is where we come in. With a complimentary assessment, we would be more than happy to help you figure out what tax credits apply to your business, and even show you how to save into the thousands or even millions on your tax bill. We can even give you more information on our program, which is free to start and participate in. You will only need to pay when we get you results!
Book a call discovery today and we will be happy to help you! Schedule online at https://calendly.com/mc-mctr/15minroi or call us at 206.547.8277 to make an appointment.
