Get Ready, Georgia Entrepreneurs, for Tax Season

April 20, 2023

Tax season is almost here. Unfortunately, it can be a time of worry for small business owners, but it doesn’t have to: Taking the right proactive steps, starting with creating a financial plan, can help you take the dread out of April.

February is not an ideal start time, but this can be a case of better late than never. Having a money roadmap for the business year ahead can help ensure that everything about your venture runs smoothly, even during raging inflation and market volatility.

Let’s consider these topics:

  • Late February is cutting it extremely close
  • Don’t wait any longer to get ready for April
  • Why optimal savings are only possible long-term
  • Work with Ironclad LLC to make the most of 2023

Late February Is Cutting It Extremely Close

If for some reason you didn’t know, it’s late February. This is far from the ideal time to start considering your business taxes, but is it too late? Absolutely not! With a solid financial plan and some strategic planning, you can still be prepared for tax season.

The first step in preparing your business taxes is creating a money roadmap for your business. We call this map/schedule a “financial plan,” but it’s different from your existing business plan. You might say it’s kind of an expansion module, though that’s selling it short.

A solid, comprehensive financial plan takes stock of your current finances, records goals for the future, and budgets to help you reach those goals. It starts as a document, but it’s also an ongoing process, as well. Once you have a comprehensive financial plan for your business, it’s time to analyze your expenses.

This means taking an in-depth look at each expense line item in order to determine what’s necessary and what could be eliminated or reduced. Doing this now should help reduce any surprises when April arrives. Next, organizing all of your paperwork is just as essential.

Gather all relevant documents. You need to gather your bank statements, invoices, receipts, contracts... anything related to your business finances in one place. Similarly, make sure to double-check everything. Now, before you’re face-to-face with the IRS, is the time to verify that there are no mistakes on any forms or documents.

Don’t Wait Any Longer To Get Ready for April

As an entrepreneur, you know that taxes are an inevitable part of running a business. They’re often both complex and time-consuming, which is why it’s so important to establish a financial plan and start preparing well in advance. One of the biggest benefits of early preparation is that it saves you money in the long run.

For example, if you wait until April, you may miss deductions or forget to include important information on your return. This could potentially cost you big time when the 15th rolls around. Conversely, by creating a comprehensive financial plan before tax season starts, you can ensure that any potential deductions are taken advantage of.

Another benefit is that having a plan in place could potentially help reduce your stress level during tax season. With everything organized ahead of time, there should be much less (if any) scrambling necessary to file your taxes. Similarly, a written plan can help you keep track of key dates and deadlines as well as any changes in regulations or laws that could affect your filing requirements.

Finally, there’s the a-word: Hopefully, you won’t be faced with one anytime soon. Nevertheless, having an up-to-date financial plan can help you prepare for an audit, if that happens. Undergoing one means that the IRS reviews your documents closely, making sure that everything is accurate and up-to-date. Since they deliberately single out financially successful taxpayers, it can’t hurt to be ready, just in case.

Think You Can’t Afford To Utilize Financial Planning for Your Business? Think Again.

Why Optimal Savings Are Only Possible Long-Term

Later is generally better than never, where planning out your income taxes is concerned. However, it can be difficult to maximize your tax savings over the short term. That is why it is ideal to have a financial plan that outlines credits and deductions over years or longer.

One of the most important things that a financial plan can do is help reduce tax liability. A solid one will map out credits and deductions over a specific period of time, allowing you to use those savings to reduce your overall tax burden. This is why retirement planning that’s done before you’re almost in your golden years can be so helpful.

For instance, through careful decision-making and planning now, you can potentially lower how much you owe in taxes now and how much you’ll have to pay on your income savings and assets as a retiree. There are a number of ways to do this, but the most well-known may be taking advantage of an IRA (individual retirement account).

These can allow your retirement nest egg to grow, tax-free. Given enough time, the result can add up to considerable savings, since every dollar saved on taxes is money that you could turn around and invest. The benefits don’t stop there, however.

A comprehensive financial plan may also help you increase your cash flow by providing clarity about when payments are due and how much they are likely to cost. With this in mind, you can budget more effectively, potentially ensuring that your business has money available as needed without overextending yourself.

Creating a money map for your business can also help you identify areas where growth can occur, such as expanding into a new market or adding additional products or services. In fact, by mapping out potential opportunities before they arise, you can take advantage of them as soon as they appear (rather than waiting until it’s too late or missing out entirely).

Work With Ironclad LLC To Make the Most of 2023

Ironclad Wealth Advisors takes pride in helping small businesses grow because we began as a small business, ourselves. That’s why you can always rely on Ironclad support for the long haul.

Whether you’re out to plan out your business taxes, make better-informed investment decisions, or prepare your financial legacy for future generations, we’re here for you. Contact us to learn more.

If Patrick Can't Save Your Business $5,000 in Taxes, You Get Your Money Back

MGO One Seven LLC ("MGO One Seven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Ironclad Wealth Management represent the individual's role with Ironclad Wealth Management, and not their role with MGO One Seven. Services are provided under the name Ironclad Wealth Management, a DBA of MGO One Seven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value. Please visit our website for important disclosures.

Please note, the information provided in this presentation is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services.

Nothing provided in this presentation constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.

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