Before October is out, make sure to get your financial records organized.
It would be best if you had all the following on hand before your next meeting with your tax advisor:
W-2s, 1099s and K-1s
Income statements for any businesses
Documentation related to the purchase or sale of any real estate
Property tax bills and mortgage statements
Social Security numbers for yourself and any dependents
Interest statements for any student loans
Receipts and other support for deductions, including charitable contributions and expenses for operating businesses or rental properties
That last one is huge. Sloppy bookkeeping — including missing receipts — is a sure sign that an entrepreneur or investor is paying more taxes than necessary.
If this is a struggle for you, hire an independent bookkeeper. This hire can be a game-changer for entrepreneurs and investors.
Once you have your records in order, schedule time in your calendar to review your balance sheet, cash flow statement, and income statement. These documents provide a snapshot of your financial health, helping you identify areas where you can cut costs, increase revenue, and save on taxes.
Putting the right tax strategy in place now can significantly impact how much you’ll owe come April of next year.
You deserve a proven system for permanently reducing taxes. Don’t wait until the new year to start thinking about your taxes. Start planning now to maximize the opportunities available to you. For help maximizing your opportunities for tax savings, schedule a call with the team at TFW Advisors® today!