In order to effectively capture tax savings through tax incentives and other deductions, your business may require more resources than you currently have available. Outsourced tax experts are knowledgeable and experienced in pursuing tax strategies that help you maximize savings.
While your business may employ accounting professionals, tax experts must be familiar with specific tax credit deadlines, rules surrounding certain deductions and the required paperwork for all tax benefits.
Instead of neglecting to pursue tax solutions or receiving minimal benefits, learn how to get the most out of your tax savings strategies by partnering with a tax consultant.Tax Software Allows You To Control Costs
Streamlined project management tax software helps your business successfully capture tax credits and other deductions more efficiently. Your outsourced tax expert partner may offer proprietary software solutions that increase transparency in the tax credit process.
Decision-makers at your company are able to control credit processes by tracking the progress of individual tax credit projects and choosing how much of each project to outsource. If you prefer to complete 5% or more of a project yourself, the right tax software helps you achieve this goal. By gaining control of outsourcing, you determine your costs as you increase tax savings.
Capture Employment Tax Credits
Tax savings strategies such as the Work Opportunity Tax Credit (WOTC) help your business earn as much as $9,600 per qualified employee. Employment tax credits are designed to reward businesses that hire individuals who face barriers to employment.
If your company hires employees who are veterans, receive food stamps or represent other designated groups, you may receive significant tax savings. Consider the following estimates for WOTC savings based on annual employee hires:
- 100 employees: $6,000 - $9,000 in savings
- 500 employees: $30,000 - $45,000 in savings
- 1,000 employees: $60,000 - $90,000 in savings
Claim R&D Tax Credits
As your business pursues R&D tax incentives, it’s important that you claim the credit for all qualified expenses. Your tax expert should ensure that wages, supplies and contract research are claimed through this dollar-for-dollar reduction in liability.
Are you missing qualified expenses when you submit for R&D credits? Consider the following examples of research processes eligible through this tax credit:
- Developing new products, processes or systems
- Redesigning existing products, processes or systems
- Testing new materials and concepts
- Researching materials alternatives
- Testing prototypes
- Reviewing the outcome of experiments
- Developing new manufacturing processes
- And more
Receive Savings Through Cost Segregation
In order to conduct a cost segregation study, you must hire an outside team of cost segregation engineers, construction estimators, CPAs and tax experts. Cost segregation allows you to shorten the depreciation time period on personal property.
Your tax consulting partner may conduct an analysis on current or prior building costs when you build, purchase, expand or remodel a facility. Real property is usually depreciated over 39 or 27.5 years, which significantly increases cash flow for your business.
As you research tax savings strategies for your company, consider the benefits of partnering with an outsourced tax expert. You save time and don’t need to hire additional employees with tax knowledge as your consulting partner helps you receive higher deductions.
If you have questions about how to increase your tax benefits, speak with a tax expert today. The tax experts at CTI are experienced in helping businesses like yours maximize savings through tax credits and deductions such as employment credits, R&D credits and cost segregation.
Ready to learn about other tax strategies that benefit your budget? Discover your path towards capturing location-based tax credits.
