Ahhhh, mid-summer. The sun is shining, the heat is blazing – it’s time to hit the pool, start up the barbecue and talk to your CPA about your business’s tax planning! I kid you not, this is the perfect time to set up a mid-year review to examine your financials for January through June of this year. Meeting with your trusted advisors, like your CPA, Financial Planner, and Cash Flow consultant will enable you to create a strategy to offset your 2017 taxes and start planning for the cash flow requirements for the rest of the year.
Dirty Little Secret about Cash Flow
It’s not about the next 30 or 60 days. What is happening in your business with regard to money coming in and going out is already in play. You need to create strategies to modify cash flow that will affect cash on hand balances for 90 days – 6 months out!
Taxes are always a challenge for a business owner. The more profitable you are, the more you probably will owe in taxes. However, starting to look at tax planning now, can help you get more money into your pockets! In my cash flow forecasting and modeling system, my clients already have eyes on projecting tax liabilities and what cash requirements are needed to avoid a cash flow problem.
Get Ahead of the Game
To avoid unpleasant surprises down the road, it is wise to take steps now to educate yourself and your team on what your tax obligations are likely to be based on how your business is currently trending. Many CPA’s do not proactively ask you to check in with them. You need to drive the timing of these important meetings.
Some questions to ask your CPA in this meeting are:
- Based on my current financials, and what will flow through to my personal return, what will my projected tax liabilities be for 2017?
- How should I split my W-2 wages with distributions?
- Do I have a tax basis to even take distributions?
- What strategies can be implemented to reduce my taxable income and get more money into my (retirement) pockets, or reinvest into my employees or company?
Want more information to get ahead of the game?
I can help with facilitating these types of conversations with your CPA. Once you know the projections, let’s put them into an 8 month forecast model to see how that affects your cash on hand balances in the months ahead!
Let’s start the conversation now! Join me in taking the first step toward Cash Flow Clarity and Total Empowerment.
Come Light the Night with Me!
After a valiant fight, my sister Patti succumbed to complications of Non Hodgkin Lymphoma and a bone marrow transplant in July of 2008. But she survived for over 10 years and lived a happy, loving, and productive life. There is no better way for me to honor my sister’s memory than by participating in the Leukemia and Lymphoma’s “Light The Night” Walk in Denver on September 28, 2017, in Washington Park.
Please consider supporting the Leukemia Lymphoma Society and helping to raise money to cure blood cancers! Come and join my family by walking in Denver’s event on Thursday, September 28, 2017 or by making a donation. Together, we can continue making a difference in the lives of blood cancer patients here in Colorado and around the world.