It’s TAX Time – No, really…it’s time to think about your taxes!

If you really want to be strategic, proactive, and cash flow focused with your business it’s time to do a mid-year review for your tax planning.  In February of this year, I suggested a handful of activities to do with your CPA.  Now I’m circling back to remind you; it’s time to plan for a mid-year review to help you with your Cash Flow requirements.

 

June is a great month to take action.  Action, not only with your CPA, but with your other trusted advisors such as your financial planner, banker, consultant, and your Cash Flow expert!  All of these subject matter experts can be a big help to your financial conversation and tax strategies.  I like to recommend that you set a meeting for July to review your financials for January through June of the current year.  By setting a meeting time now you are setting an intention to create a strategy (or strategies) to offset your 2016 taxes and/or start planning for Cash Flow requirements.

 

When it comes to paying your company and personal taxes, there should be no surprises.  Taking proactive steps to educate you and your team on what your tax liabilities are likely to be, based on how your business is currently trending, can lead to empowerment and peace of mind!

 

My recommendation is to have your bookkeeper make sure your books are current the first week of July.  Set the expectation now with that trusted advisor to be sure the goal is within reach.  Next, send an email to your CPA requesting a meeting time in July and ask if they can review your financials and give you a projected tax estimate for 2016.  As a final invitation, consider inviting your financial planner and your Cash Flow expert to this same meeting to bring outside eyes to the conversation.  This will be helpful: having everyone involved in the same conversation to help create strategies for the 2nd half of the year.  If your business is carrying debt, business loans, and/or credit card debt, it may be helpful to invite your banker to the table as well, to get feedback on restructuring debt and/or buying equipment to help offset net profits.

 

A mid-year review is a great time to look at whether or not your quarterly tax estimates are on track or can be reduced?  Are you splitting your W-2 Wages with Distributions?  What strategies can be implemented to reduce your taxable income and get more money into your (retirement) pockets, or reinvest into your employees or company?

 

Taking a proactive step to meet with your CPA and other trusted advisors to do a mid-year review for taxes, will help you with any Cash Flow requirements that may need to be planned for.  If your business is running a profit, wouldn’t it be good to know at this time of the year and create strategies to potentially offset some of the liabilities?


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