Increase Income by Avoiding Tax Myths

tax image small for evernote (1)Tax Myths and emotional money mindsets play a major part in the amount of income we earn as well as the amount of taxes we project on future income. Saving money, protecting your money, and increasing your money all require effort.

Money Myths and Mindsets
Money myths and mindsets are terms I often use when speaking about money blocks.  Our money mindset determine the amount of money we choose to make and can make in our business as well as earn in our lives.  What does this mean?  Myths about taxes and the work involved in monitoring and tracking spending often deter business owners or independent contractors from moving forward.

Open the Door to More Income
What holds us back from making additional income.  The most common money blocks are:

1.  Avoiding Taxes
2.  Paying Taxes out of Fear
3.  Making investments or purchases out of emotions
4.  Not planning future purchases
5.  Spending without a money plan.
Trying to avoid taxes can increase taxes.  Many times I have heard business owners say their accountants call them at the end of the year to tell them to spend in order to lower taxes.  The goal is to have $0 taxes.  Paying taxes is not my favorite thing but the more we earn, yes, we have to pay taxes.  Taxes are required for living but yet taxes are controllable.

Tax Planning, Cash Management, and Bookkeeping help you to avoid two business and cash management pitfalls. 1.  Waiting until tax season to know your financial outlook and 2. Low or lost income and high ineffective spending.

Zero Taxes and A Business Loan

Waiting until tax season to determine $0 taxes does not reflect a successful business.  $0 tax reflects the business income is low or the business is over spending.  If a business attempts to get a loan then $0 tax liability does not look well to the lending institution.  However, if you owe a large tax balance the taxes due reflect a poor or ineffective spending plan.  An effective spending plan is based on tax deductible spending and proper self employment taxes on money withdrawn from the business.  

Your goal should to be to increase income and become an effective spender to lower or better manage your tax bill. 

Take Action!  

Consult with an Accountant to set up a bookkeeping system for you.  The system does not have to be complex but effective to track income, receipts, expenses.  The system should produced financial or money reports to determine your financial outlook of your business.  Your receipts should be kept in a digital format to avoid the receipts that fade at the end of the year. And create a money plan for effective spending to create more money in your business and lower taxes.

Next newsletter, we will talk about paying taxes out of fear and making investments or purchases out of emotions.  Did you just hire some one or lower your pricing because you felt sorry for them?  Let’s talk about how that effects your income and taxes.

Get More Info
Read more on Receipt Tracking

3 Fast and Easy Ways to Track Receipts  with Apps
3 Fast and Easy Ways to Track Receipts for the Non Tech

Get Started with Bookkeeping!

3 Simple Steps to Jump Start your Bookkeeping
Accounting Software Selection Made Easy


Accounting Firm handling Bookkeeping, Cash Management,  Profit Strategies, Payroll, and Tax Services based in Fuquay Varina, NC serving local areas and nationwide.

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Y. Michelle Coard, BA
President/Accountant/Profit Strategist
B&P Accounting Solutions, Corp.
Phone: 919-249-5156 ; Fax: 919-249-5156

 

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