Well, the countdown is REALLY on now for personal taxes and if you’re like too many Americans, you might be stressed about what effects COVID and a slow 2020 might have had on your taxes.
The truth is simple: a lot of people got a lot of benefits from the government, and while that might scare you with the idea you’ll be “on the hook” for income you didn’t plan on, you really shouldn’t worry about it.
In the grand scheme of things, the truth is, anything you received last year – from the PPP, various stimulus payments, and so on – was a fluke that you couldn’t plan for.
In other words, don’t sweat it.
What I really want you to do is this: determine the things that happened last year that always seem to happen – at least in terms of taxes, timing, and payments – and let’s plan for them in 2021.
Seriously! We see the same things sooo many times with entrepreneurs. Poor planning in respect to growth, little or no thought being given to partnerships or distributions, men and women who refuse to pay themselves a salary and keep taking money from the company in ways that wave red flags, and TONS of account mixing with no documentation as to where monies originate and where they move to.
If this sounds like you, then my advice is simple, and I’m begging you to take it:
Let’s get together and create the bookkeeping and accounting systems and processes that will make life easier and far more cost effective for you from both a tax preparation and monthly bookkeeping perspective.
Now, I completely understand that the total amount of work needed to handle a year’s worth of business accounting might seem the same regardless of whether you do it in one dramatic flurry of activity in the Spring or you dedicate time each week or month to handle it.
…But the truth is, the amount of time needed is considerably longer if you wait.
By handling taxes and bookkeeping duties monthly, you limit the amount of accounts and statements you could possibly have to look at, so the chances of making a mistake are far lower, and the sheer volume of entries to do is far less.
As a result, you and your team can keep things organized and easier by eating the elephant one bite at a time instead of trying to do far too much too late.
If you’re sick of scrambling and tired of paying too much, then TODAY is the day to make time to get organized and set up your systems for 2021. You’ll be faster, more accurate, and likely spend far less money to have better results.
Go ahead and schedule a call for us to see how easily you can create systems to make life easier!
All the best-
Ted Smith CPA