It’s that time of year…
It’s not just Christmas and holidays and eggnog, it’s the time where most business owners start thinking about their upcoming tax bill and start to panic.
Instead of making some hail mary plays and desperately buying new equipment or making emergency donations this year, let’s take a breather and commit to making 2022 profits better.
Now is the perfect time for you to start planning out your taxes for 2022 profits and make it not just one of your best years in business, but also one of the least stressful!
I swear, if you put in some time now to plan for 2022, come this time next year you won’t be sweating bullets during turkey dinner with your family, and instead have the peace of mind knowing exactly what your tax bill is going to be.
Tax planning vs Tax preparations
Business owners have two ways to put cash in their pockets: 1) a financial defense—the ability to spend less money or 2) a financial offense—the ability to generate more sales and make more money.
For most people, spending less is easier than making more money.
The Government Accountability Office estimates that business owners overpay their taxes by $50 billion each year. This is shocking news!
So, if taxes are your biggest expense, then it makes sense to concentrate your efforts where you spend the most.
Tax planning guarantees results.
You can spend all sorts of time, energy, and money on promoting your business, but there are no guaranteed results. Or you can set up a retirement account and immediately see tax savings from this strategy.
These guaranteed results start with planning.
You can’t expect results if you don’t invest in tax planning to begin with. Tax planning is an investment in the future of your business growth. (What would you do with an extra $5,000, $8,000, or even $10,000 each year? What about $30,000 or $50,000 each year? How could this money benefit your business or your family?)
Most business owners are familiar with tax preparations. That’s probably what you’re staring down the barrel of right now. You’ve probably got a metaphorical pile of receipts from your business that you’re going to dump on your accountant in the hopes that they can work a miracle for you.
Sorry to break it to you, but that’s pretty much hopeless. There’s not much even the most skilled and attention-to-detail-driven accountant can do at this point.
This kind of tax accounting is basically just looking in the rearview mirror of your business and seeing the past. It’s going to be hard to get where you want to go driving that way!
2021 may be a lost cause, but that doesn’t mean 2022 has to be as well!
Tax planning for 2022 starts with a tax analysis right now by going over the past two years’ reports. That’s going to become a baseline you can use to estimate your tax liabilities for the next 12 months.
All that data is going to help you make decisions on your taxes for 2022 that is going to help you save big.
With a proper tax plan in place, you can guarantee tax savings now rather than hoping and praying the IRS will be generous come tax time (Hint: that never happens).
If you want to learn how much you could be saving on your taxes and start planning for 2022 profits NOW, you can always click here to connect with me and we can start the process of getting tax results for your business today! What are you waiting for?