Tax policy, credits and growth opportunities: Don't leave money on the table

RCS Influencer Katie Clymer says good tax planning is about making informed decisions that keep more money working for your company while positioning you for the next stage of growth.

As a roofing company owner, I’ve learned that tax planning is about a lot more than simply handing everything over to your CPA at the end of the year and hoping for the best. When you’re running a roofing business, there are a lot of moving parts, and the decisions you make throughout the year can have a significant impact on your tax liability and your ability to grow.

Understanding available tax credits and deductions is an important part of that process. Roofing contractors invest heavily in trucks, equipment, technology, employees, training, insurance and other business expenses. There may be deductions or credits available that can help offset some of those costs. The key is knowing what applies to your business and keeping good records throughout the year.

Expensing strategies can also be an important part of planning for growth. If you’re already considering purchasing a new work truck, replacing equipment, upgrading technology or making improvements to your office or facility, understanding the tax implications before you make the purchase can help you make a better business decision. I’m not a believer in spending money just to get a tax deduction, but if you need the investment anyway, you should understand how to make the tax rules work in your favor.

One of the biggest lessons I’ve learned is that you don’t have to figure it all out yourself. Having a CPA or tax professional who understands your business and preferably understands the construction and roofing industry can make a huge difference. And that conversation shouldn’t stop with your business taxes. Your personal tax situation matters too. Depending on how your company is structured whether it’s an S corporation, LLC, sole proprietorship or another entity, your business and personal tax situations can be closely connected. Consistently talking with your tax professional about both sides of the equation can help you make better decisions throughout the year.

Tax laws change all the time, and they can also vary from state to state. What worked last year may not be the best strategy this year, especially for contractors working across state lines. Don’t wait until tax season to ask what you could have done differently.

Good tax planning isn’t just about paying less tax. It’s about making informed decisions that keep more money working for your company and your family, while positioning you for the next stage of growth.