• Tax Strategies for Liquidity

    Safeguarding Your Future

From global disruption to economic uncertainty, business operations are adapting to change, and agility is key.
Now more than ever, tax departments play a crucial role in seizing opportunities to stabilize near-term strategies and plan for a profitable future. The tax strategies discussed in the 2021 BDO Tax Outlook Survey illustrate the evolution of the pandemic’s impact on businesses. The focus is shifting from preserving cash in 2020 to building upon those reserves in 2021 via longer-term optimizations. This year’s top-five planned strategies to employ are in lockstep with the No. 1 tax issue identified in the survey: mapping the tax impact of COVID-19-related business strategies.

TOP TAX STRATEGIES FOR RESILIENCE

 



Restructuring supply chain for improved tax efficiency.



Outsourcing of specialized tax work.



Challenging assessed property tax values through appeals.



Using relaxed tariffs/duties payment extensions.



Performing R&D tax credit studies.

BDO TAX STRATEGIST WEBINAR SERIES

Discover tax planning opportunities to prioritize for your business.

THINKING LONG TERM

As the demand for goods and services continues to rise to pre-pandemic levels, businesses are doing all they can to meet demand while reimagining their future. While many hope to meet or exceed market growth expectations, some businesses are already experiencing growth. With an optimistic mindset, it’s time to execute long-term plans while considering the tax impact to the business. Tax considerations that may align with your company’s overall business strategy include:

  • Workforce: balance employee safety and operational efficiency
  • Finances: focus on strategies to lower your total tax liability as taxable income increases
  • Transactions: consider acquisitions, mergers, selling assets or purchasing resources
  • Global supply chain optimization: minimize global tax liability
  • Regulation & legislation: monitor and assess changes to stay compliant and consider new opportunities
  • Transformation: integrate processes, people, technology and data to accelerate data-driven insights and mitigate risk
  • Innovation: use tax incentives and credits to offset investments

Learn more about reimagining the future and seizing new opportunities.

BDO TAX INNOVATION WEBINAR SERIES

Learn how technology enables an agile tax department.

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BDO Cash Calculator

Identify tax planning opportunities to
increase cash for your business.

CONTINUE OPTIMIZING

For those businesses still focused on generating and retaining cash, opportunities remain to take advantage of government relief programs as well as low-risk tax strategies to position your business for future growth. While working toward growing liquidity, don’t miss out on these opportunities:

  • Debt and losses optimization, including net operating loss carryback and tax credit refund claims
  • Strategies to increase cash flow, often presented as contingent fee projects, such as tax credit studies and refund reviews, cost segregation studies, property tax assessment appeals, income tax return reviews, sales tax refund reviews and unclaimed property exemptions and refunds
  • International tax savings, including relaxed tariffs and repatriation costs as a result of overseas operations
  • Making the most of legislation while maintaining compliance (e.g., employee retention credit)

Learn more about generating immediate cash flow and uncovering tax relief opportunities.

QUESTIONS?

BDO is poised to help businesses balance short- and long-term strategies. Get in touch.