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However, while business plans are incredibly important. The best business plan should include a financial plan and tax plan as well as.
The reason why these financial and tax plans are so important. Is because they will help minimize the taxes that an entrepreneur has to pay the government.
In fact, and inefficient tax plan. Can end up with an entrepreneur paying significantly higher amounts of money to the government. Which can cause a negative impact on the entrepreneurs business.
By putting a cash strain on the business with a high taxes that they are paying. And according to industry Canada. The second most common reason why Canadian entrepreneurs are failing in business. Is because they are running out of money in their business.
So if they are able to save significant amounts of money in taxes. Then they can keep more of that money inside their business.
And use that money to do things like increase their marketing, pay bills, or hire more staff. So that they are more likely to succeed.
However, many business owners avoid getting financial plans created for a number of different reasons. One of them being thinking that in order to benefit from a tax or financial plan. They need to be making millions of dollars in their business first.
They often think that they will get around to creating a financial or tax plan once they have been in business for a few years. But since 15% of entrepreneurs fail in the first year of business. And 30% of entrepreneurs fail in year two.
The sooner business owners can create these financial and tax plans for their business. The more likely they will be able to avoid those odds. And stay in business longer.
Business owners also need to understand that they do not need to be making millions of dollars in their business. In order to benefit from a tax strategy and financial plan.
In fact, businesses that are small and even soul open or. Can benefit from a financial and tax plan. In order to make it financially worthwhile. Business owners only need to be making fifty thousand dollars per year in their business. To benefit from a tax strategy.
Therefore, business owners need to understand that as long as they are making at least fifty thousand dollars a year in their business. It is going to be cheaper for them to get a financial and tax plan created.
In the sheer amount of money that they will save in taxes says cfo services. Then they would end up paying for a financial and tax plan in the first place.
Knowing this, business owners need to contact their accountant or look for CFO services that will allow them to get a financial and tax plan early on in their business. So that they can keep as much of the money that they make in their business. So that they will be more likely to succeed.
Many business owners might not understand exactly what a financial and tax plan will do when looking at the various CFO services they can get for their business. However, it can be one of the most important things that they do.
One of the first things that a financial plan will ensure. Is that a business owner knows that they can take the money out of their business that they need in order to live.
And that the best accountant who is helping them get a tax strategy and financial plan for their business. Will take into consideration their personal circumstances. As well as the circumstances of their business.
They should be discussing not only what the household income is. Such as if there is any other family members bringing in a paycheck. Or if they have any streams of income from investments or property.
They should also be discussing things like what is their debt servicing, and what are their monthly bills like. Including mortgage and car payments. The even should be discussing how many dependence the family has.
In that will help create the best financial plan. That will help advise an accountant what mix of salary and dividends the business owner should be getting. In order to minimize the taxes that they have to pay.
This is incredibly important. Because while the highest tax rate in Alberta is currently 48%. And the corporate tax rate is currently 11% says cfo services.
The mix of salary and dividends is very important. To ensure that they are not just minimizing corporate taxes. But they are minimizing all taxes for the entrepreneur as well.
And while many business owners are making more than fifty thousand dollars in a year. Which means they will benefit financially from a financial and tax plan.
By getting their CFO services from Spurrell and Associates. Can help business owners even more. Because they do not charge any extra money for their financial and tax plans.
They are able to do this. Because they have created templates that they can use. To ensure that all important questions and information is taken into consideration.
So that not only will they deliver consistent financial and tax plans. But so that their accountants can work quickly through the easy parts of the financial plan. And spend more time on parts of the plan that require more thought process.
Also, because of this template approach. They do not charge any extra for their financial and tax plans. Especially because they know how important these financial and tax plans are to a business.
So by not charging any extra. They can increase the number of people getting plans for their business. And help more businesses succeed.
