Big corporations save much more each year on their taxes than small business owners do in large part because they invest a lot of money in soliciting expert tax advice. Big corporations have the financial backing and power to make tax rules and regulations work to their benefit, while small business owners merely get by through simply accepting those rules and regulations as they are. In today’s economy, it’s tough enough for most small businesses to survive these days even without having to pay more taxes than they should. But regardless of size, the rules should be the same for all businesses – shouldn’t they?

This is not simply the fault of the small business owner for not wanting to “rock the boat” or push tax barriers, but there are also many professional accountants who just take the raw numbers and enter them into a tax program as-is and deal with the results. They are reluctant to work as real tax advisers and help their clients to take advantage of various financial strategies that would help them to lower their annual tax bills. They neglect to plan, review or go over the figures – they just plug them in and send the bill out.

If asked, these accountants often say something about along the lines of having to keep their bill affordable. They claim that their clients do not want to pay for tax advice and tax planning. Whilst some small businesses may only be interested in getting their accounting done cheaply, surely the vast majority of them would accept that a good accountant more than pays for themselves with the tax savings that they can arrange?

Paying more taxes each year than you should is not a smart business investment, so when you get right down to it, the small business owner needs to be responsible for hiring an experienced tax adviser that can get them the best results possible. You should not stick with an accountant just because he or she has done your taxes for the last 20 years, instead, you should look for a qualified and experienced tax planner that can give you the best results – someone that has received recent training or re-certification that can help you to strategically plan your taxes better.

You work far too hard and risk far too much to end the year pay a larger percentage of your profits to the government than you are obligated to. Learn from from the big guys – be willing to pay extra upfront so that you can later reap the benefits of sophisticated tax planning. It pays for itself many times over. Advanced tax planning does not require you to break any laws or regulations. All you need is an experienced accountant who knows how to use the laws and regulations to your advantage. Not every accountant can do this – get one that can.

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