Here are some recent email and Facebook questions I’ve received about taxes:
- What will my tax rate be?
- Should I buy a lot of things for my business before year end?
- How much should I put away for taxes?
- Am I going to have to pay a lot this year?
- How much can you save me?
Every question has the same answer, which is actually a question: Can I see your financial statements?
An accurate and timely financial statement is a business owner’s best friend. In fact, it might be his only friend. That’s because it tells the past, assesses the present and foretells the future. There is no emotion, just the facts.
Oh, and by timely, I mean your financial statement should never be more than 30 days old. So if it’s October 15th, then you should have, at a minimum, your August financial statements. You might already your September one done, which would be great.
You need the financial statement not just to figure out how much in taxes you owe, but also be able to read the story of your numbers.
A bookkeeper takes your activities and turns them into numbers and a CFO reads your numbers and turns them into activities.
It all starts with your financial statements. If you don’t yet have a good system for preparing financial statements, make that a priority. There isn’t much time left for tax planning and we need financials to make that happen.
Want some help? Our bookkeeping services are incredibly reasonably priced and all of our accountants have college degrees in business/accounting. Give Richard a call at 888-592-4769 to get started!