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The reason why this is so important. Is because a financial plan can help business owners save taxes. And when they are paying less taxes. They can keep more of the money that they make in their business.
According to industry Canada, not only are 50% of all small business owners failing within five years. But the second most common reason why business owners fail. Is because they are running out of money in their business.
Therefore, if business owners are able to pay fewer taxes. They will be able to keep more of the money inside their business. And be less likely to run out of money.
With how important this is, business owners need to look for the right CFO services for their business. That will allow them to get I financial and tax plan for their business.
One mistake that many entrepreneurs often make. Is thinking that they will save money by not paying extra for these plans. However, the amount of taxes that they end up saving.
Can actually be more than the cost of the financial and tax plans themselves. Making it a best business decision for entrepreneurs. Because even paying for these services. Will result in an entrepreneur saving more money than they spend.
However, the accountants at Spurrell Associates do not charge any additional money for their financial and tax plans. The reason why they do not charge extra. Is because they know how important those plans are to the businesses success.
They are able to achieve this by using a template. So that they can ensure all important questions are asked. And all necessary considerations are thought about says CFO services.
By having a template for their financial plans and tax plans. Spurrell and Associates can ensure that they are offering consistent quality. And a high level of service to every customer.
What this also does as well. Is ensures that the accountants can spend more time with their clients. On the questions and issues that could not be addressed by the template.
So that the financial and tax plans end up being higher quality. Then if they started the process from scratch every time.
By creating a template for their process. They can ensure that they can do the financial and tax plans quickly. Allowing them to not have to charge additional for these services.
Once they have a great financial and tax plan in their business. It is important that they also are updating these plans every single year. Because not only to their business circumstances change.
But their personal circumstances can change as well. By getting a financial and tax plan done every single year.
Entrepreneurs can ensure that they are minimizing the tax payments that they have to make. And keeping more money inside their business. They can use that money to help them run their business successfully.
One of the reasons why many people want to own a business is to save money on taxes which is what they look for when they are hiring CFO services. However, they need to ensure that they have the right financial and tax plans in place to achieve this.
Just by owning a corporation. It does not necessarily mean that an entrepreneur is paying the minimal amount of taxes that they should. They also need the right plans in place they need to hire the right CFO services.
Many entrepreneurs open the doors to their business. And make the assumption that they are already saving the most taxes that they can.
However, they can apply a quick test. In order to ensure they are most likely getting an efficient tax plan. They should look at how they are drying money from their corporation.
If a business owner is drying 100% salary from their business. Or if they are drying 100% dividends. It is likely that they do not have an efficient tax plan set up.
The reason why, is because an efficient tax strategy. Typically requires a combination of drawing salary and dividends.
However, what that mix is will depend on the entrepreneurs circumstances. And is best determined by their accountant in a financial and tax plan that they create with the business owner.
Not only do they need to ensure that they have this tax plan created. But they also need to ensure that when they hire these CFO services for their business.
That their accountant is also taking into consideration their personal circumstances. Such as if there is any other streams of income that the entrepreneur is making.
As well as if they have any debt, and what their monthly bills are including mortgage and car payments. Even how many dependents they have. Can end up factoring into what will be the most effective financial plan for the entrepreneur.
Taking the personal circumstances into consideration is extremely important. Because that will ensure that the financial plan that is created. Is something that the entrepreneur can live with.
If the financial plan is not something that the entrepreneur can live off of. Then the entire financial and tax plan will not work.
Not only that, but since the business owners circumstances are likely going to change every year. They need to ensure that they sit down with their accountant every year to discuss the changes in their life.
If business owners are simply using last year’s financial plan for their tax planning in the next year. It is likely to happen, is it is not going to be the most effective tax strategy.
Each will result in the entrepreneur paying more in taxes. And not realizing that until they reached the end of their year.
Therefore, business owners need to ensure that not only do they have a tax and financial plan in their business. But that they are updating it each year. To ensure that they are consistently paying less tax in their business every single year.
