Unless you’ve filed for an income tax filing extension, tax season likely seems like a painful blip you’re grateful you can now avoid for another year…It’s similar to the way you feel on the drive home from the painfully awkward family reunion for the crazy side of your spouse’s family
But I challenge you with a question.
Was it painful because....
- You’re overtaxed. Like most business leaders, you pay a disproportionate amount of the total tax collected by the government. Simply put, you pay a ridiculous amount beyond your “Fair Share.”
You’re not confident your tax returns are prepared correctly. The stress from the uncertainty weighs heavily on you and only begins to subside once your return is actually filed and you’ve crossed the task off on your mental checklist.
Your business financial records are admittedly less than stellar. Efforts to collect the data required to prepare tax returns are more difficult than actually running your business.
- Some or all of the above.
Regardless of your answer to the question, consider the following facts. If your answer was A and you believe you’re overtaxed, you’re probably right. That said, the tax code isn’t likely to be overhauled any time soon. But you can impact what your tax liability is. Through sound tax planning and a properly implemented tax strategy, you can manage your tax.
If your answer is B and you aren’t confident your tax return is correct…there’s a simple answer; get your taxes done correctly, now. The answer isn’t difficult. If you’re preparing your own tax returns and not confident they’re correct, it’s time to hire someone to prepare them. If you are hiring someone and fear they’re incompetent, it’s time to look elsewhere for expertise. Remember, just because your returns may have been prepared incorrectly doesn’t mean you owe more money. Errors on your returns may mean you’re entitled to a refund you didn’t know you had coming.
If your answer is C and you’re gifting is not in recordkeeping, accept this challenge. If you want to manage your business to maximize your profit, you need to measure performance far more often than annually on April 15. Most often, keeping financial records current is neither as difficult or time consuming as you fear. Remember, what gets measured gets managed. If you aren’t measuring performance, you’re not managing performance. You’ve been entrusted with the profits of your business. If you hired someone to run your business, you’d expect an accurate reporting at least every month. And the good news is, if you are keeping financials accurate in QuickBooks to manage your business, collecting what’s needed for tax season isn’t nearly as time-consuming.
GuideSource has the expertise needed to help you develop and implement your financial plans for your business including a tax plan. Call us to experience the difference our clients see in their businesses.