The final tax decision for the financial year typically causes heartthrobs for the CEO.
Typically, the final tax decision can cause uncertainty in the company's cash flow.
Post-taxes may require an extra cash buffer, while a tax refund is a pleasant surprise.
However, the final tax decision does not have to be a surprise. With tax planning and good preparation, you can take full advantage of your tax deductions and avoid uncertainty, primarily related to post-taxes, affecting your company's cash flow. This blog explains how, with your accountant and riskrate's automatic full-year P&L forecast, you can forecast the year's profit with a few clicks and make tax planning effortless.
Good time to do tax planning is in the middle of the fiscal year
A good time to start tax planning is in the middle of the financial year. You now know the actual result of the financial year.
Still, the challenge is often the estimate for the full-year result, i.e., the forecasted net result for the entire financial year, which is tedious and time-consuming when done manually.
How do you estimate the accurate full-year results with ease?
With these two steps, you can quickly get an accurate full-year P&L estimate. With an accurate full-year estimate, your accountant can compare your company's taxable income with the advance taxes paid.
Riskrate's Riskrate's automatic P&L forecast is an effortless tool that generates a P&L forecast for any period you want with a click. Riskrate's automatic P&L forecast uses your company's financial data and AI. Riskrate's automatic P&L forecast considers business trends and seasonal variations even on account category level, making it a must-have tool for tax planning and full-year estimates.
Step 2. Refine the full-year P&L estimate together with your accountant (30 min to 1 hour)
Next, together with your accountant, you can refine the full-year P&L estimate.
You can review whether your company has made new sales contracts, recruitments, investments, or acquisitions that impact your company's net result.
Your accountant can edit Riskrate's automatic P&L forecast so you can get a detailed profit forecast for the financial year right away.
With these two steps, you can quickly get an accurate full-year P&L estimate.
Your accountant can now compare the P&L full-year estimate with the advance taxes and propose keeping them unchanged or changing them.
Taxes directly affect your company's cash flow. With riskrate's automatic full-year P&L estimate and your accountant's help, you can easily influence and forecast the taxable profit of the financial year.
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