Barbara Schreihans, CEO and Founder of Your Tax Coach.
Running a successful business requires more than just providing a great product or service—if you want to grow your business and become profitable, it won’t happen if you keep overpaying the IRS every year. Many business owners think all they need to do is hire an accountant who will take care of the tax side of their business for them. Beware of this.
The accounting firms that simply run your numbers and are not getting to know the ins and outs of your business specifically, and in my experience, may be causing you to pay more in taxes than you should. That’s why leaders might consider hiring a tax strategist.
A tax strategist will do an intensive deep dive into all facets of your business. Since no two businesses are alike, there isn’t a blanket tax strategy that works for everyone. Hiring a tax strategist can make all the difference in increasing your profits.
As a tax coach, I’d like to break down the advantages of adding a tax strategist to your team.
1. Tax Savings
I hate to break it to you, but if you aren’t working with a tax strategist, there is a chance you are paying the IRS too much in taxes. Hiring a tax strategist for your business could potentially save you tens of thousands of dollars every year on your tax bill.
2. Changing Tax Laws
The only certain things in life are death and taxes. And you can be certain that the IRS constantly changes the tax laws. Keeping up with these changes is extremely overwhelming for any business owner. When you have a tax strategist on your team, you can feel at ease knowing you are well-informed about the latest changes.
3. Maximizing Deductions And Credits
A tax strategist’s primary role is to learn your business specifically and determine what deductions and credits you qualify for. From industry-specific deductions to overlooked expenses, a good tax strategist’s goal is to ensure you are not overpaying your tax bill and to save you as much money as possible.
4. Saves Time
You’re wearing a lot of hats as a business owner. And all the parts of your business demand your attention. Handling complex tax matters on your own is extremely time-consuming. When you hire a tax strategist, you can focus on what you do best and rest assured your tax-related matters are handled, saving you money on your tax bill.
5. Avoiding Costly Mistakes
Don’t think that you can’t afford a tax strategist. When in reality, you probably can’t afford NOT to hire a tax strategist. Tax errors can result in hefty penalties and unnecessary financial stress. A tax strategist’s expertise minimizes the risk of errors that could lead to legal troubles and financial setbacks.
Hiring a good tax strategist for your business is so much more than someone who inputs the numbers you give them during tax season. Tax strategists are there year-round to answer all your tax questions and ensure you keep more of your hard-earned money in your pocket.
A good tax strategist can also help you set financial goals for your business and assess how you can get there financially.
Best Practices
How to find a tax strategist for your business? When you’re hiring a tax strategist for your business, keep in mind that you are hiring a team member. And potentially one of the most important team members because of the impact they could or could not have on your financial growth.
When you’re on the hunt for a tax strategist, consider speaking to other business leaders in your industry for referrals. While it might not seem as important, I also highly recommend doing a search on social media for tax strategists, as typically those tax strategists are keeping up to date with trends and the modernization of business strategies.
On the other hand, if you’re not ready to hire a tax strategist, there are multiple ways to minimize your tax bill and maximize your deductions and credits until you’re in a place to hire one. Educating yourself with blogs, online courses and books are great ways to learn. There are also numerous weekly newsletters that top tax professionals put out every week that are designed to help business owners maximize their deductions and save on their tax bill.
Conclusion
From maximizing your deductions and credits to strategizing how to help you reach your financial goals, the benefits of hiring a tax strategist can outweigh the costs. Hiring a tax strategist for your business could be the one thing you do for your business that changes everything.
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