Benefits of Retaining The Service of A CPA For Aircraft Tax Planning

If you own any type of aircraft for business or trading, then it is essential to retain the service of an experienced CPA for aircraft tax planning. The proactive tax planning is essential for all types of business in order to lessen their tax liability. However, it is not possible for any CPA to handle the issues related to aviation tax or aviation accounting since it requires detailed knowledge regarding the rules and regulations of the federal, state and local agencies.

The owners or operators of business aircraft have to be compliant with the guidelines of FAA (Federal Aviation Administration) in order to avoid having their license suspended or revoked. It is equally important for the owners/operators of business aircraft to follow the guidelines of IRS (Internal Revenue Service) with regards to the accounting, tax planning and bookkeeping. These businesses also need to follow the guidelines of SEC (Securities and Exchange Commission) and DOT (Department of Transportation). It is difficult for the owner/operator of the business aircraft to be mindful about the guidelines of different agencies. However, the violation of these guidelines may result in penalty or cancellation or suspension of the license. Therefore, it is important to retain the service of an aviation attorney to ensure compliance to the guidelines of FAA, SEC and DOT. It is equally important to retain the service of a CPA who specializes in aviation accounting and aircraft tax planning.

A CPA may work with a tax attorney during auditing or to resolve the legal issues related to accounting. A CPA (certified public accountant) and an attorney, who handle the legal matters related to aviation tax, both stay updated about the changes and modifications in federal tax and state tax of the aviation industry. However, it is prudent to retain the service of a CPA for accounting, bookkeeping and aircraft tax planning since they are trained for these tasks.

They know how to help their clients save money on taxes through proactive aircraft tax planning. A CPA does not just ensure that their clients are compliant with the aviation tax regulations. They also help their clients reach their financial goals through proactive tax planning.

The changes in legislation, economy and technology make it difficult for an individual, who knows nothing about aviation tax or accounting, to proceed towards the financial opportunities. An aviation CPA can help their clients in maximizing their income through effective strategies of proactive aircraft tax planning. It is possible to maximize the profit of a business without violating the law if a CPA has structured their financial situation. It is also possible to reduce the tax liability. An experienced CPA knows how to consider the effects of all provisions of the tax code during tax planning. They can find the most beneficial way to structure their clients’ financial situation based upon unique condition of each business. For more information visit here: Advocate Consulting Legal Group, PLLC.

The Role of An Aircraft Accounting Expert

As an aircraft operator, you will know how important it is to keep track of the money spent on the aircraft. The money flow includes receivables, payables and other expenses. Whether it is making sure that the parts are always on hand or ensuring that the plane is fully insured at all times, the costs can pile up. 

To manage costs, companies need to know how they are spending their money and where they can make improvements. Aircraft accounting experts provide businesses with a way to do so. They help companies to grow faster and efficiently by using their expertise and experience to assist them with making better decisions regarding their finances. The following are some ways how these experts do so:

Accurate Records

Aviation accounting helps in maintaining accurate financial records. This can help you avoid errors or omissions in your financial reports. Moreover, it ensures that all costs are properly accounted for so that your company’s finances remain healthy. They maintain record by doing:

•    Regular audits and reviews to ensure that your financial records are up-to-date and reflect the best possible picture of your assets, liabilities, profits, and losses.
•    Asset valuation to give you an accurate picture of the worth of your assets. This includes everything from depreciation and useful lives of equipment to valuing aircraft for sale or purchase purposes.
•    Financial reporting to ensure that the information you provide your investors, lenders, and partners is true and accurate.
•    Preparation of tax returns for both your company and its employees. This ensures that all taxes are paid on time, which is crucial for any business.

Better Decision Making

Aircraft accounting helps make better business decisions by providing detailed information about your business operations and their performance over time. This enables you to make informed decisions about future growth plans, expansion strategies and more.

Manage Cash Flow

Aviation accounting experts also help companies improve cash flow management by ensuring that they always have enough money available for emergencies or unexpected expenses. By helping you manage your finances properly, these professionals ensure that your company always has enough funds to cover its day-to-day costs without borrowing from banks or any other funding sources. This reduces the risk of bankruptcy for companies that do not manage their finances well enough and run out of cash reserves before receiving their subsequent payment.

The Bottom Line

Long-term savings are another benefit that comes with hiring an aviation accounting expert. Since they will ensure that your account for all costs associated with each project, you can compare the current cost of doing business with previous years and see which areas could use some improvement. This kind of analysis gives you a clear picture of how much money your company has saved over time. For more information visit here: Advocate Consulting Legal Group, PLLC.

Aircraft Tax Planning - Advocate Consulting Legal Group, PLLC. (239) 213-0066

 

 

Advocate Consulting Legal Group, PLLC.
1300 N. Westshore Blvd. Suite 220
Tampa, FL 33607
(239) 213-0066

https://advocatetax.com/aircraft-income-tax/

Aircraft Deduction - Advocate Consulting Legal Group, PLLC. (239) 213-0066

 

Advocate Consulting Legal Group, PLLC.
1300 N. Westshore Blvd. Suite 220
Tampa, FL 33607
(239) 213-0066

https://advocatetax.com/aircraft-income-tax/

Aviation CPA - Advocate Consulting Legal Group, PLLC. (888) 325-1942

 

 

Advocate Consulting Legal Group, PLLC.
3555 Kraft Rd. Suite 240
Naples, FL 34105
(888) 325-1942

https://advocatetax.com/

Aviation Accounting - Advocate Consulting Legal Group, PLLC. (888) 325-1942

 

 

Advocate Consulting Legal Group, PLLC.
3555 Kraft Rd. Suite 240
Naples, FL 34105
(888) 325-1942

https://advocatetax.com/
 

Aircraft Accounting - Advocate Consulting Legal Group, PLLC. (888) 325-1942

 

Advocate Consulting Legal Group, PLLC.
3555 Kraft Rd. Suite 240
Naples, FL 34105
(888) 325-1942

https://advocatetax.com/