Here in the US, tax day is around the corner…
Is it stressing you out?
I get it!
Back when I had a full-time job I’d receive a W-2 form showing the taxes that were automatically taken out of my paycheck.
So I really didn’t even think about it. The company deducted what I owed from my salary and filing my tax returns was easy.
Once I became a coach and business owner, dealing with taxes became a whole new ball game…
…And I’ve definitely experienced some big bumps in that road!
So, I wanted to share with you 5 strategies I’ve learned over the years that have turned my tax time “frowny face” into a smile :)
[IMPORTANT NOTE: I’m not a financial or tax advisor so always consult with a professional to make these kinds of decisions in your business. I’m just sharing my personal experience and what has helped me as a coach and business owner.]
#1 – Love Paying Taxes
Counter-intuitive, I know… but the fact is, if you aren’t paying taxes, you’re not generating net income.
Whenever I’ve had a particularly high tax bill, I do my best to shift my thoughts. Instead of being pissed that I have to pay all those taxes, I have gratitude.
I focus my energy on appreciating the income I’ve earned and am grateful for being able to provide so much value and service to my clients, students and customers during the year.
#2 – Pay Quarterly Estimated Taxes
You probably already know to do this, but I have to admit that when I made the leap from being an employee to business owner, I somehow missed the memo…
…And when I got my first tax bill at the end of that year without having contributed anything up until that point, it was very painful.
#3 – Have A Separate “Taxes” Bank Account
I love this one! Each month I transfer money into a separate account to cover my taxes and then when it’s time to pay those quarterly estimated taxes the funds are already socked away.
FYI – This is just one of the many different accounts I put money into each month that makes my financial management so much better and easier. It’s my customization of the “jar strategy” that I first learned when I attended The Millionaire Mind Intensive.
#4 – Maximize Deductions
Since I’m not an accountant, financial planner or tax advisor, I can’t give specific advice on what is and isn’t allowed as a deduction…
…But what I can tell you is that I was very surprised to learn how many business deductions I could claim, especially once I got creative :)
#5 – Hire Professionals
I bet you didn’t become a coach and launch your business to spend lots of time dealing with this stuff. Me either! That’s why…
- I have a bookkeeper who enters all my income and expenses into Quickbooks each month.
- I have an accountant who provides tax-saving advice and guidance throughout the year and files my tax returns.
Alrighty! Those are my 5 favorite “How To Be Smiling At Tax Time” strategies.
I’m curious, are you implementing any of these in your business?
Do you have a favorite tax time strategy?
I’d love to know! Post a comment or share your best tax time strategy below.
And as Benjamin Franklin once said, “There are only two things certain in life… death and taxes.”
A good reminder to have gratitude for the latter :)