I have been in business for over 13 years now, and I am learning that people think accountants want to control their money. As an accountant, I am not forcing anyone to follow any advice that I give you. I am only advising on the best accounting requirements, accounting standards, tax planning practices, and business practices. What is the benefit of having accounting advice, you may ask?
Advice for better tax management
An accountant should give you the best steps to manage your money that will provide you with lower taxes. The Internal Revenue Service or IRS has what they call qualified deductible business expenses. This publication is a listing of what is considered a business expense. According to this listing, we plan out our year for spending. A business purchase is different from paying yourself or withdrawing money from the business. There are also various tax types. Many people think if they do not have to pay sales taxes, that means no taxes, but there are still other categories of taxes. Accountants help you best plan for those taxes. The type of business you have determines the kind of taxes you have to pay, and accountants enable you to navigate this process. We do not help you to avoid taxes because that is not possible.
We help you with profit planning or profit strategies.
I understand we want to feel like we have the freedom to buy whatever we desire, but that is for your personal side of things. Many people use the business as a personal bank account, as in whatever comes into the business, the business owner wants to use it for private income. Once you use the business income for personal income, the business owner often will need a loan to fund the business. How can you stop this cycle? Also, if you want to see money collect in savings, you must understand that you may have to pay taxes on that money according to your business type. Only corporations, not including LLC’s, can claim retained earnings. The real question here is, how do you create or earn a profit? There are a series of steps, and I would recommend starting with my pricing course for business owners.
Accountants do not want to control your spending but help you to spend better. If you want to know how to maximize and grow what you have, an accountant helps you with this process. If you want more money to spend on the personal side, you have to make sure your business is appropriately running and can support itself, and an accountant helps you with this process.
Learn more about accounting by visiting my blogs, scheduling a consultation, and paying for a consultation to discuss your individual needs.
Y. Michelle Coard, B.A.S, A.A.S in Accounting, Accountant and Profit Strategist
Co-Owner of B&P Accounting Solutions, Corp.