No matter the size of your business, it is important to have a fundamental understanding of the mechanics of calculating and paying taxes, as well as running your business in a way that provides the best possible tax outcome. However, we have found that in most cases, business owners have NEVER had someone sit down and explain these basic but pivotal concepts to them in a way that is easy for them to absorb and assimilate into their decision making.
This is the idea behind our Business Best Practices coaching series. We provide all of our new business clients with individual, personalized sessions with our tax professionals to guide them in these critical questions:
- How is my tax calculated?
- What is my effective vs. marginal tax rate?
- When am I required to pay my taxes and how much should I plan for?
- How do I read my business financial statements?
- What is a deductible business expense per the IRS?
- What documentation am I required to keep track of to substantiate my deductions?
- What is the value of my business deductions (i.e. how much tax do I save for every $1 of deduction)?
- How do I pay myself from my business?
- Which retirement accounts am I eligible to contribute to and what is the most tax efficient option?
- Which expenses should I pay through my business vs. personal accounts (health insurance, medical expenses, life insurance, auto, etc.)?
- And many more!
We have found that these coaching sessions provide invaluable advice to our clients and empower them to move forward in their businesses and in their relationship with our firm to ensure smooth operations and their best tax outcomes.