Profit Strategies Focus on More Than Profits
Profit strategies, unlike the name, does not focus only on profit. Perhaps, you are thinking profit is not my focus or I am not worried if I earn money. However, if you are in business and plan to write off your expenses you should have a plan for profit. We can not write off expenses for a hobby.
Profit strategies are different methods used to help manage our expenses that increase the bottom line. My focus is to assist clients to be more efficient with spending. Most business owners are taught or desire to spend everything they have to avoid taxes. Although, I do not enjoy taxes this mindset leaves us very little for large purchases or reinvestment back into the business. We also miss out on paying consistent salaries or bonus payments or donations.
All expenses except salaries and bonus payments for non-corporations are tax deductible. Corporations can claim owners salary and bonus payments as payroll and as tax deductible expenses. The expenses reduce the taxable income.
Profit Strategies Monitor Income Producing Activities
Time is money and profit strategies help us to determine the strategies that will increase time and our income with the services and products that are the most beneficial to make.
During the recording of the bible, farming was the primary source of income (provision from God to live). Animals and livestock were very important during this time.
Today, we would replace the farming with the gifts or jobs we have received that help us to earn a living. Proverbs 27:23 – “Be sure you know the condition of your flocks, give careful attention to your herds.” God is saying to monitor your means of earnings and money management.
We have to protect our time just as we protect our money. Time is money. If you think of a rate of pay as $45 per hour. If we know the minimum a month we need to pay owner salaries, payroll, or contractor pay, taxes, and operating expenses we have an idea of the minimum amount of hours we need to work. I do offer free services within controlled environments. Paid services are provided on different days in higher volume. Recently, I have chosen to downsize my tax business and will no longer accept new clients.
Profit Strategies Assist with Planning
Profit strategies gave me an overview of quality services that I can provide. I first compared how I felt during and after tax season. Emotional, spiritual, and physical exertion has to be taken into profit strategy. If I am ill I can’t perform my job and money can not fix that issue. Next, I determine expenses compared to income. Is this service profitable if my health can endure? The answers are no. My health risk is not worth continuing to grow the tax division. Profit wise has been lost time and money. Therefore, it’s time to discontinue the tax business as far as active tax preparation for new clients. Tax planning is the act of preparing people for taxes and I can offer those services without a loss.
Profit strategies show me how to focus on other services that build me up spiritually, emotionally and financially leaving me time to take care of the physical. The correlation of time, spiritual and financial have an effect on spiritual, emotional and physical care. Proverbs 27:24 “For riches are not forever nor does a crown endure to all generations.”
Profit strategies simply leave us additional money to either grow or maintain our business, donate, or reach the salaries we need for owners pay, payroll, or contractors and more time. Profit strategies also allow for mental, spiritual, and physical health benefits as well.