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When important to reason why entrepreneurs often want to go into business for themselves says part-time CFO, is that they wanted to be able to accumulate wealth personally. Many entrepreneurs understand the limitations they have on be able to affect their future income by being an employee, so by becoming an entrepreneur, they can unlock the potential of being able to earn unlimited income, and being able to accumulate wealth in their life. One way that business owners can help achieve this goal, is through efficient tax strategy based on how theyíre going to take money out of their corporation.
The reason why this is important determination in wealth accumulation, is because how business owners take money out of their business, either through salary, dividends or a combination of both, can help business owners save money in taxes both personally and in their corporation. And efficient tax strategy can help business owners save thousands of dollars every year. When they are able to save that much money in taxes, business owners should be able to save that same amount of money to put into their investments for the future.
Because is an extremely important determining factor in tax savings, business owners should hire the best part-time CFO that they can in order to make the best decision to help them save the most taxes. Itís a complex issue that business owners are going to need to answer several questions do. If the person that there working with either answers the question very simply, they may not actually understand the circumstances completely. For example, any people believe that the salary, dividends and corporate tax rates are integrated, and what theyíre referring to is since the dividends and corporation are not deductible from the income of that corporation, an entrepreneur ends up paying corporate and personal tax on it, and if you add up both tax rates together, it should equal the amount on the salary. This is a simplistic view that works in theory, but there are actually so many variables associated with it that it doesnít actually work in reality.
The part time CFO at Spurrell and Associates have a formalized process that they created through several years of tax planning experience they have that can help them efficiently create tax strategies for their clients. The reason for this, is because they have a formalized process that they use in order to gather as much information from the client about their life and their business as possible. They then have processes that they have developed on how to process that information very efficiently. This allows them to come up with the best tax strategies possible at a lower cost, because they are coming to the information quickly.
Business owners want to hire the best part-time CFO that they can in order to create the best tax strategy possible, not only to save thousands of dollars in taxes every year, but so they can use the money that they save to accumulate wealth in their business so that they can impact their future.
The decision about how entrepreneurs take money out of their business isnít so much a decision about income as it is about tax strategy says part-time CFO. One of the most important reasons that business owners should be mindful of saving taxes in their business, is not only to help a business owner stay cash flow positive in their business, but entrepreneurs who save thousands of dollars in taxes a year, can use that money in order to invest it in their future. Since many entrepreneurs decide to go into business for themselves in order to positively impact their wealth in the future, this is one way that they can strategize to do it.
Business owners should understand that this is a complex issue that requires complex planning. A warning sign that they may want to know about in order to alert them to whether they are utilizing and efficient tax strategy or not, is if they look on their financial statement and notice that they are getting paid either in hundred percent dividends or hundred percent salary. Part time CFO says that the most efficient tax strategies usually have a combination of both salary and dividends. While itís not unheard of for the most efficient strategy to be 100% dividends or salary, that is the exception and not the rule.
If they decide to talk to their part-time CFO about their strategy, they should be mindful that if there part time CFO answers the question quickly and without much thought, they may not understand the situation clearly. In order to properly answer this question, tax professionals must deeply understand not only the owners circumstance, but the circumstance of the corporation as well.
There are several variables that are going to need to be considered when making this decision for business owners. Part time CFO will ask questions about of their income business owner may have, if they have a spouse, if the spouse has other income, do they want to do income splitting? Do they have any child care expenses, and who claims those? Are either entrepreneur going through a divorce or separation, because that will factor into how they get paid in the business.
By taking all of these variables and several more into consideration, tax professionals are better able to get a clear picture of whatís going on in the business and the business ownerís life, that they can start putting together tax strategy that will not only help the business owner save money personally, theyíll save money in their corporation, and they can use that money invest and increase their future wealth, as well as increase the cash flow in their business and help their business more successful than it ever has before. Itís extremely important that in order to achieve all the schools, a business owner needs to ensure that they are paying the right part-time CFO, because a poor tax professional will cost them more money and lost taxes.
