Tax Season is a Myth
Now that tax season is over (and you had a few extra months this year to get it together) – we can all breathe a sigh of relief, right? Well, yes and no. It feels good to be ‘done’ with them for the year – but I want to encourage you to not stop thinking about your taxes just yet.
If you are still working with an accountant that you only see once a year – drop off an envelope or email your records to them, anxiously awaiting what they are going to say you owe – then we need to talk. Because chances are, if you are dropping off your taxes like your dry cleaning then you are either underpaying or overpaying. And BOTH are bad for your business.
If you are underpaying or saving, then when it comes time to pay your tax bill you will be stressed about where to pull the cash from to make your payments.
If you are overpaying, you are saving money that you could be investing in your business, using those funds instead to pay yourself, hire a team, expand your business, and more.
Let’s be more like Goldilocks and get that tax estimate just right.
A Financially Empowered Business has a great tax strategy in place ALL YEAR LONG. Yup, all 12 months. I want you to think proactively about your strategy – not just think about it when your tax return & payment are due, because most of the things that could save you in taxes can’t be done ‘after the fact’ once the year is closed out.
When you work with a financial team who knows your business and strategizes with you all year long, that means there are no surprises. You want your team to be looking at your profits regularly and giving you advice on how you can make your money work for you. And, let me be clear – we don’t give tips like ‘hurry up and spend all of your cash at the end of the year to stock up on ink and paper for the next 3 years’. We mean actual strategy. Customized to your business – adapted and adjusted as your business changes throughout the year and you hit your goals.
A traditional accountant uses your prior year numbers to estimate what you should pay for for your next year’s taxes. And that’s fine – if you plan to have exactly the same business this year that you did last year. But, if you are like most of our clients, your business is rapidly changing & improving every day.
Chances are if you are only thinking about taxes one time through the year, you also have a lot of fear and anxiety when it comes time to think about them. You fear the IRS boogeyman coming to arrest you for the tiny mistake you may have made when rushing to get your paperwork together. Or are scared of the amount your accountant is going to tell you that you owe and you are not sure where you are going to get the cash to pay the bill.
At Empowered Profit, we help you think about things differently. We change from a reactive approach (crap – how am I going to pay that tax bill) to a proactive approach, where you are not surprised come tax time. We work with you to estimate your taxes through the year so that if adjustments need to be made along the way in your profit plan, they can be. We teach you tactics you can easily implement and also help you to understand your tax strategy, explain how your business is taxed, and how it all flows together. When you do that, I promise you – the fear and anxiety go away. You deserve to work with a financial team who understands you and doesn’t make you feel shame or embarrassed by your finances. We’ve got you!
Want us to help you with this? Book a call with us today and we will help you get it all sorted out!
This is provided as information only and as a starting point for a conversation with your own legal and accounting team, this should not be considered legal or financial advice. All of these decisions are based on a number of factors and we cannot guarantee that you will experience any specific results based on any information provided. Please speak with your own retained professionals to ensure that you are making the best decisions for your business & personal situation.