You all overpay income taxes to the federal and state governments. As a wealth advisor and CPA, I can tell you the easiest way I have found business clients money is by concentrating on their tax returns. While I never met anyone who wanted to pay more in taxes, from my experience your ignore tax free ways to extract income your business. I am speaking of overpaying taxes and by thousands if not tens of thousands of dollars, annually. This results in you working more years of life and working harder in your business. It also lessens the probability you are earning the cash flow you need to live the life you want now and in the future.
Have I got your ear yet?
BTW, this is not rocket science. Most tax free ways to extract income from your business is due to not paying attention to your tax bill, not planning taxes with your CPA or tax accountant during the year and not demanding proactivity from your tax professionals. What do I mean?
Most business owners wait until the beginning of the next year, after the current tax year ends, to send their tax information to their professional. I have seen so many get their information in with maybe weeks or even days before the filling deadline. And then the information is spotty or incomplete. How can you expect your accountant to find tax savings from the year before, when the year is over. Solution: Get your tax information to your CPA in early December. Estimate the income and expenses for the last month. That way, there is a great chance to find those tax free ways to extract more income from your business. Know what your tax return looks like BEFORE the end of the current year. I can’t guarantee how much you might find in tax savings, but I can guarantee if you have a great tax accountant, you will find some!
Now suppose your CPA is too busy before the end of the year to see you. Solution: Get a new tax person! They are costing you money.
Also, make your tax accountant accountable each year. Ask them specifically how much they have saved you this year…every year! And let them know you expect to see savings. I have done this with clients for over 30 years.
Other tax savings: Buying equipment or furniture in December even if not using it until January of the next year, funding 401ks, giving bonuses before the last day of the year, was that entertainment or a gift or conference and many many more. Also, explore the many types of defined benefit pensions with your tax person. But your CPA will know these, or they had better.
Or you can just work longer and harder in life and proudly overpay the federal and state governments.
If you are ready to take the first steps towards living the way you want now and for the rest of your life, look no further than this book, “Master Your Business Cash Flow.” Find out more here: https://alzdenek.com/book/