In my last blog post I confronted the fear of taxes and the many questions that people usually have for me as they are learning the how-to’s of having a tax preparer or CPA help them through the process. As I finished up writing that blog I realized that there are several other fears that business owner’s experience that should also be addressed.
In my previous blog I mentioned that information is power. It is not just a nice cliché. It is the truth. For business owners the information you need and want most generally starts with good record keeping. A good set of books will be one of the most important things you can do to arm yourself.
You tax return is a direct reflection of your record keeping! If you have information all over the place preparing your financials or tax return will be a challenge. It will also be almost impossible to tell you how much you owe without good organized books.
The fear comes with not having things in order.
So how do we confront this fear? Have a very important and honest discussion with yourself and decide that no matter what you are going to have good records! Whether you hire, outsource the accounting or you learn to do it yourself, it gets done.
I work with many businesses all year long educating on how to do the record keeping better, what software to use and the basics of business finances. We also discuss the accounting system design and how to properly report inventory, payroll or even job costing so that you get the proper information.
Once all the ground work has been laid then we can discuss taxes because we have a clear picture.
Next, thought on this is the attitude or opinion that you don’t want to pay any taxes. Actually paying taxes is a sign of success. In the news we here about how corporations don’t pay any taxes and that is completely not true. They pay all kinds of taxes and so does any functioning healthy company.
The goal needs to be tax planning so that you pay only the taxes you have to pay and as much on your terms as possible. This tax planning is a way to determine other ways to use your profit. You can pay more taxes or choose other options that will allow you to invest your profits. Profit is a sign of sound business decisions which can also contribute to more wonderful opportunities.
Unfortunately, in a consuming society, we think of business expenses as a tax write-off and any tax write-off is good! That’s false! Only tax deductions that produce results (more profit) are good business decisions! Tax planning comes second to sound business development!
If you are navigating the fear of taxes and you’re a business owner you are a perfect customer for us! We combat those fears with sound advice and help you push through the fear and find success! Email me at gluoma@gmlcpa.com if this made a difference in your life!
