Tax season has come and gone. You’ve filed your 2020 taxes, but chances are you’re not even close to prepared for 2021 taxes. CPAs are often so busy preparing last year’s taxes this year, that they don’t have time to help you, their client, with this year. This has become a mainstream problem in the accounting industry, unfortunately. However, BaCo has mastered the tax process with our unique technology, BaCo Tech, so we’re able to provide our clients with a multitude of services throughout the year instead of just focusing on their tax returns during “tax season.” We can create year-round tax plans for our clients that are proactive rather than reactive. Here are some of the reasons you need a proactive, year-round tax plan.
Month-to-Month Tax Projections
BaCo Tech is designed to sync with the software you use for your books, so your information is automatically uploaded to the system each day. With this, our CPAs can gather your numbers together and do anything they need to give you information you may have never had from any other CPA before. One of the things we’re able to do is provide your business with month-to-month tax projections. For all 12 months, we can project what your tax numbers will be so you can be more prepared for what you owe and eliminate year end surprises.
Planning While Still in the Year
With a proactive, year-round tax plan, you’re able to plan ahead, not just in the last couple months of the year after tax season. This is important because financials are important for any business. A famous adage from Benjamin Franklin says “failing to plan is planning to fail” and this is especially true for business owners. Struggling to plan for the next year, or starting a plan too late, set’s you up for failure. Our CPAs at BaCo can give you the information you need to plan for your year while you’re still in it. Whether that’s planning for taxes, debt, or payroll, you can do all of it as you go instead of at the end of the year.
Different Planning Opportunities
Having said all of this, you can see that there are many planning opportunities for your business when you work with BaCo. Many CPA firms do their planning with you in October or November when tax season is wrapping up and they’ve finished focusing on last year’s numbers. We are able to start planning with you year round, when you need it, which is far better than starting in October when it’s 90 days before the new year comes around.
Trailing 12 Report
Trailing 12 months (TTM) is a term used to describe the past 12 consecutive months of a company’s performance data. This method of accounting has many benefits to it including helping one report financial figures. BaCo Group creates trailing 12’s for our clients because of the benefits it offers. One benefit is that it tracks your performance. It gives you the ability to look at your trend over the past twelve months and evaluate it. TTM is helpful when it comes to spending. You’re able to track your spending over the last 12 months and evaluate your progress such as where your money is going, how much you’re spending, and how often. Then you can set up a plan to improve your spending if need be. TTM allows you to see your cash flow as well. Similar to tracking, you can see where your cash flow rises and falls and determine the factors affecting it allowing you to plan for future cash flow trends. Overall, the TTM has been proven useful for our clients, and we believe it would be useful for you too.
BaCo Group has a unique way of doing things that’s different than any other CPA firm. If you want to see what this new process can do for your business, contact us about more information. We’d love to sit down with you in-person or virtually to discuss what services would be right for you and your business.
Published on Jul 12 @ 9:14 AM CDT