Planning is Pivotal to Tax Season Sanity
By Jessica Tremayne
Veterinarians not investing in a practice overhaul need to dig deeper to find deductions and loopholes this tax season.
Smart tax planning is key in optimizing an annual return and starts by finding a certified CPA with industry experience. A CPA will help veterinarians avoid an audit and maximize the benefits of state and federal tax laws. A professional accountant who understands the ins and outs of the profession can provide a check-off list of the type of tax information that should be gathered throughout the year and can show how to catalog those expenses.
“Some CPAs will also offer veterinary practice management consulting, which means the CPA can assess the practice by helping the owner organize practice operations and devise a tax-goal game plan,” says Mark J. McGaunn, CPA/PFS, CFP, president of MJM Financial Advisors of Westborough, Mass. “Our goal is to prevent that gotcha moment where a client realizes he or she could have had a better return if they had done things differently during the tax year.”
The biggest mistake is the invariable April scramble to collect information, CPAs say.
“Bookkeeping is a real issue,” McGaunn says. “Vets pay for practice or work-related items personally, then lose track of the receipts and end up absorbing tax return money. Keep in mind the ultimate goal is to not get a refund and to pay minimally.”
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