Filed Your Taxes? Consider These 3 Strategies for an Improved 2024
Now that the annual tax deadlines have passed, it’s important for businesses to take a step back and review their total tax situation. It’s a crucial time to improve operations in your current operation and for future plans.
Here three strategies to consider when reviewing your company’s total tax:
Identify areas for improvement
By reviewing your total tax situation, you can identify areas where you may be overpaying or underpaying taxes. This can help you adjust operations and financial planning to improve your tax situation to help your overall operational efficiency.
Plan for the future
Post April 15 is a great time to plan. By reviewing your total tax situation, you can identify potential tax implications for plans such as expansion, mergers and acquisitions, or changes in ownership structure. This can help you make informed decisions and avoid unexpected tax consequences. When considering a business exit or sale, the recommended time to act is two-to-three years out to structure the company to be in an improved position to go to market to boost after-tax proceeds.
Stay compliant
Tax laws and regulations are constantly changing. By reviewing your total tax situation, you can help stay compliant with applicable laws and regulations. This may help avoid costly penalties and fines, significant reductions to the purchase price, large escrows, and that someone else’s taxes don’t become yours (e.g. unremitted sales tax).
How we can help
The offseason is a critical time for businesses to review their total tax situation. By taking the time to improve operations and plan for the future, you can identify areas for improvement and stay compliant. Don’t wait until a potential business exit to let others review your total tax situation — start now and give your business and transaction improved chances for success.
Craig Arends is a principal at CLA and is the managing principal of CLA's private equity practice. Craig brings a concentration of experience in providing accounting and transaction structuring advice for leveraged recapitalizations, purchase accounting and SEC reporting, assessing quality of earnings, and GAAP accounting. He has far-reaching experience with critiquing financial models and reviewing target companies' financial performance to identify cost reductions and/or operating efficiencies Craig has more than 30 years of experience in public accounting serving public companies, private equity groups, and companies, including a term as principal in charge of a Big Four Capital Markets Group in Moscow, Russia. He has led financial accounting due diligence projects for private equity investor groups and venture capital funds, primarily in the technology, communications, and manufacturing industries, as well as assisting with Foreign Corrupt Practice Act matters ranging from investigation of payments made, validation of compliance with corporate policies, and review of proposed transactions to ensure compliance. When not working, Craig enjoys watching any sports, but his most favorite are baseball, football and soccer.
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