tax season Archives - Solopreneur Profit Coach |

Why Hire a Tax Professional For 2020?

Do not DIY your taxes this year. Especially if you received a Paycheck Protection Program (PPP) loan, a grant, a long-term SBA loan, or some other type of financial assistance, working with a professional this tax season is imperative. Let’s talk about why that is.

Keeping Things Neat

Especially if you got something like a PPP or SBA loan in 2020, there are certain things you need to keep track of and report com tax time. A professional can help you identify these things and get all your ducks in a row.

The same goes for figuring out how to report any grants or other assistance you and your business may have received. I know some people took money out of an IRA, and knowing how to report that is something a professional can help with as well. In general, 2020 was a financially tumultuous year for most businesses and individuals. A professional tax preparer can help you figure out what you need for 2020 taxes, and how to do them to the best benefit for you and your business.

The Benefit of Professional Training

The training tax preparers go through each year is extensive. With tax policy changing every year and differences between handling state and federal taxes, there is a lot to learn (and re-learn). A lot of the things they get trained on are just the types of things small business owners often miss or botch on their own taxes, simply because they don’t know what they’re missing.

2020 was a very “special case” type of year in terms of public policies around money. In special cases like these, taking advantage of the special training of a professional can be very helpful.

Reach Out for Recommendations!

If you’d like help or advice from a professional tax preparer, financial advisor, or myself, please don’t hesitate to reach out! I’m happy to give referrals to awesome folks who could become a part of your long term money team. You can reach out to me by scheduling a free 30-minute Financial Self Care Consultation. Whatever path you take, please know I am here for you to act as a resource. I wish you the best this tax season!

Angela

The Best Thing You Can Do For Your Business

Today I am excited to bring you a client success story. With the tax deadline coming up swiftly, tax preparations have been on my desktop and my mind. But they haven’t been weighing down my clients, because of the tools we use to prep for tax season.

The Story

I have one client that I’ve worked with for several years now. In the beginning of my time working with them, taxes were a huge, stressful burden. By using a money mapping system that relies on Profit First principles, we were able to start setting aside money to pay taxes. In 2019, the client had an excellent year and made a lot of money. In ordinary times, this would be great. However, because we faced lower income this year due to the pandemic, if we hadn’t saved ahead of time, we would have found ourselves in disaster come tax season. Thanks to the money system we instituted, we had our tax payments completely covered, even with lower revenue this year.

The Success

Now my client and I are happily relishing in a worry-free tax season. Saving for taxes is one of the best things we’ve done for this business. It’s helped us avoid a lot of sticky financial problems and kept things running smoothly.

Our success is all thanks to the money mapping system we use. I’ve written a series on money mapping that you can read through to get a sense of how to put this tool to work. Aside from tax season, it has a lot of other benefits, like reminding you to save and making your work in your business feel meaningful. This process of creating a money system is a big part of what I do with my clients. You can book a curiosity call with me if you want to know more about how the process might apply to you.

A Little Reminder

Just in case you don’t get my newsletter, here’s a PSA: By July 15th, your 2019 taxes are due to be filed and paid, if you owe. You are also required to turn in your first and second quarter estimated taxes for this year. Please read my article on 5 Steps to Get Ready for Tax Time to get prepped. I’m also happy to offer my services – please don’t hesitate to reach out.

Angela

Image by Javier Sierra