Winston S. Churchill was once quoted saying, “We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” There seems to be a popular theory that increased taxes will help increase the standard of living. No matter the politics, your Boise CPA will help you understand what it means for your business. In terms of modern tax policy, the recently passed Inflation Reduction Act appears to be a law allowing for the expansion of IRS agents and budgets. These activities are primarily funded through taxes collected from American taxpayers. Some implications may have a significant tax impact on you and your small business.
Lack of Adjustments & Deductions for Business that Boise CPA won’t be able to Fix
One set of implications comes from the lack of “adjustments for cost recovery, including accelerated depreciation and depletion, nor for deductions related to employee stock ownership.” (Wilson Center) Even though there are tax provisions for businesses under the new regulation, there are no changes made for your small business, still coping with rising costs due to inflation. You should set up a solid foundation with a sound tax plan with the help of your Boise CPA accounting team. Together with their help, you and your business will be able to deal with the brunt of the latest regulatory changes.
Boise CPA Observes increasing Regulation over Innovation
If your small business operates in the pharmaceutical sector, you should prepare for the latest sweeping changes. The newly passed bill will give the government power to negotiate your prices through Medicare. This includes any current or future products which your business may offer. Implementing price controls on your products may have a lasting effect as you will lose the freedom to set your prices based on production costs and demand. Instead, new government regulators may force you to negotiate a new price structure and reduce your level of innovation.
Spending Green & Going Green? What the Boise CPA has to say
In addition to increasing price controls, the new laws allow for government expansion into energy sectors, subsidizing renewable energy to certain levels. At the end of the day, your business may see an increase in utilities from gas to electricity, as cheap power production with existing methods becomes outdated and outmoded. In the US, California has been a long proponent of green energy and its business consumers have had to foot the bill for the increased costs. In Germany, several lawmakers have pushed further laws promoting the construction of costly solar and wind energy production. Those consumers, many of them businesses, have experienced as much as a 52% increase in energy costs as compared to last year.
Strategic Tax Planning by Boise CPA to Prepare for Tax Changes
Making plans to weather out the storm can help you prepare for when your tax situation begins to change. If you are interested in learning more, you should speak with your Boise CPA. They can help you strategize and identify deductions that will help you at tax time. Don’t ignore your business and improve every angle possible.
Expert-Reviewed Tax Preparation Helps Maximize Total Deductions
In your small business, you want to make sure that each number and figure is input correctly at tax time. Your Boise CPA will understand that you are looking forward to getting past tax season. Their tax preparation service will help you and your business through the difficult circumstances involved with recent changes in tax regulations. While these implications may affect you and your business in unexpected ways, you can expect your accountant to help you, step by step. The process doesn’t need to be complex, that’s why your tax experts work hard to keep up with the changes in the tax code.
Bookkeeping to Give Peace of Mind
Don’t just hold on to your old receipts and throw them in a shoebox. You should reach out about bookkeeping services in preparation for tax time. As good practice, make sure your books are kept up to date on a regular schedule. Your Boise CPA will help you find a bookkeeping solution that works for you, not against you. Bookkeeping is more than just entering numbers on ledgers and spreadsheets. It helps you keep track of monthly expenses and make sure income is properly reported. This will help you take proactive steps to keep ahead of the competition and make sure your business is profitable, not unproductive.
Prepare for an Uncertain Future with the Boise CPA
In several opposing political theories rising to power, your current tax situation may change very soon. However, you should not be too concerned about your business if you have taken the proper steps to prepare beforehand. Keep in mind that your business success will only last as long as you plan for it. On the other hand, if you choose to neglect proper planning you may suffer the ultimate consequence- business failure- and be forced to learn from a reactionary standpoint. The Boise CPA you choose to hire will have the expertise to help you understand what your business needs to succeed.
How your Boise CPA can help you have Faith Over Fear
You should put faith in your business surviving, rather than fearing it to fail. Focusing on your next move and growing your business is much more productive than focusing on the “what ifs” that could lead to failure. True, there are circumstances that may lead your business to fail, but ultimately it is up to you to decide how badly you want to keep your business moving forward. Putting faith over fear does two things for your business: first, you see exactly what needs to be done, and second, you don’t let setbacks stop you or keep you down.
Wrap Up
While this new tax law may certainly have implications for your small business, you should keep in mind that a good business CPA can help you navigate the challenging road ahead. Don’t keep looking down and hoping that “one day” the tax code will change, because things simply aren’t going back to the way they were. You need to put your faith over fear and plan, making sure you stay proactive and ahead of the curve.