In fact, approximately 85% of this demographic overpays their federal income taxes every year. Why do you suppose that is? We all know that paying income taxes is a fact of life, but no one wants to pay a penny more than they legally must.
The fact is that very few tax professionals sufficiently understand the purpose of the federal taxation code, as it applies to the owners of small and closely held businesses. As a result, many tax preparers (and taxpayers) focus on fighting the code rather than embracing the ways it can benefit business owners.
ALIGNING THE SMALL BUSINESS OWNER’S GOALS WITH THE TAX CODE
The federal taxation code was established for the purpose of achieving a set of overarching goals for the country. To guide our society toward these objectives, individuals and business owners who share these goals are rewarded through tax incentives.
For example, one of the code’s primary objectives is to provide a stable economic base for retirement for business owners and their employees. When everyone has sufficient reserves to fund their retirement lifestyle, it provides confidence and peace-of-mind while reducing the economic burden on the government. To reinforce this goal, taxation laws reward activities that help preserve assets and penalize those that put accumulated wealth at risk.
Other objectives include gifting to family and charitable causes, securing the payment of debts and providing for a surviving spouse, should the business owner pass away.
When business owners align their goals with those of the code, they minimize their liability. Unfortunately, today’s model of providing tax services fails to help entrepreneurs understand these concepts.
TYPES OF SMALL BUSINESS TAX SERVICES
Today’s fast-paced, technology-focused society is another reason that business owners often pay more taxes than they should.
If you prepare your own tax returns using a software package or use a fractional tax service firm (H & R Block, for example), you don’t derive the tax-saving benefits that you could from establishing a long-term relationship with a full-service tax professional.
When you build a professional relationship in this way, your tax services professional gets to know you, your business and your goals. Over time, your tax team can guide you through the process of aligning your goals with those of the tax code, reducing your tax liability, helping your business thrive and allowing you to become better prepared for the future.
FINDING THE RIGHT SMALL BUSINESS TAX SERVICES
At Cash Flow Mastered, our certified team members use a propriety system and advanced, research-based analytical models to provide strategic tax assistance to small business owners. These services – and the astounding results they render – often elude entrepreneurs because they don’t know how to find them.
With Cash Flow Mastered, you have found them.
If you would like to learn more about how you can potentially reduce your tax liability, download our free e-book. If you’re a small business owner who is ready to put the combined experience and expertise of our team to work for you, contact Cash Flow Mastered for assistance today.
