First, focus on documentation and bookkeeping. Entrepreneurs tend to be fast-paced individuals with a distaste for mundane details. Paying attention to the details pays off! Accurate and timely bookkeeping — along with proper business documentation — are two critical tools for reducing your tax burden.
Second, identify all eligible deductions. Most people pay more tax each year than they should because they aren’t aware of all the legal and available deductions. Don’t make donations to the IRS. Find and take all your available deductions!
Third, start scheduling regular meetings with your tax advisor. It’s nearly impossible to create a meaningful wealth and tax strategy if you only see your advisor at tax time. To be strategic, you should speak with your advisor regularly. Think of the tax law as a tool. The tax law tells you how to save money on your taxes. Your advisor should be able to guide you to find what you are missing.
Want to learn more about how you can make way more money and pay way less in tax? Book a call with the team at TFW Advisors® today!