When a patient comes in for their checkup you don’t treat them based on last year’s x-rays.
Unfortunately, that’s how most tax preparers treat their clients. They simply plug in last year’s numbers and let the software do the rest. Their goal is minimal compliance and maximum volume. The more returns they can file by April 14th the more money they make. They are not invested in you or the long-term financial health of your practice.
A true tax planning professional provides guidance, coaching and proactive advice within the context of your complete financial plan. They are not only proficient in the latest tax law, but they make it their business to be a specialist in your business, industry and plans for the future. They approach your small business with the same rigor and creativity as a Fortune 500 CFO.
CWA’s Chase Thomas, CPA and Financial Planner, points out four critical ways your practice will benefit from partnering with a tax planning professional.
In Chase’s own words:
1. Tax planners look at the big picture
The first thing we ask our clients is to define what financial freedom means to them. It’s different for everybody, but it usually comes down to doing what you want to do with your day without constantly worrying about money. That could mean seeing fewer patients, seeing more of the cases that excite you or simply being able to retire with time to enjoy the fruits of your labor.
Whatever that end goal is we place a value on it and work backwards from there. Tax planning is just a piece of the puzzle, but it’s a critical piece. We look at tax season as more than an annual chore. We view it as an opportunity to help our clients achieve their dreams of financial freedom.
2. Tax planners are experts in the law and your industry
Tax laws are constantly changing, and you don’t have time to keep up. Neither do most tax preparers. They simply do what the software tells them to do often missing opportunities that could save their clients big time. Even small opportunities can really add up over the years.
Recent changes to the tax law mean that your small business could qualify for new deductions. Your tax rate could potentially be lower even if you made more money than the previous year. We can help you take advantage of the changes, because we live and breathe this every day rather than just once a year.
Also, most tax preparers are not experts in a particular industry. They work with a variety of clients and business models. We are financial professionals in the dental community with over 1,900 clients seeking guidance from us throughout the year. We understand the unique challenges you face and can identify opportunities others simply may not see. We don’t just, “do your taxes,” we help your practice become more efficient and profitable.
3. Tax planners answer questions tax preparers don’t even know to ask
When is the best time to invest in capital improvements and how will the potential productivity and revenue increases affect future filings? That new, cutting edge device that you write off this year could also make you more profitable next year. We can help you project and predict so you can plan ahead, ensuring today’s deduction doesn’t become tomorrow’s tax burden.
What tax advantages do you have as a business owner that the average individual doesn’t? Have you considered hosting your next client event or company meeting at your home or vacation home? You can charge your business rent, up to 14 days annually per property. The rental income you receive as a property owner is tax free.
How can retirement planning for yourself and your employees double as a tax reduction strategy? Many small business owners think setting up a 401k program for employees is too expensive when in actuality it can pay for itself through tax advantages. A win/win scenario for employer and employee.
These are just a few of the questions we know how to answer, because we know to ask them. As a small business owner you are inseparable from your business. Understanding that dynamic and all the ways it plays into your personal and professional financial health is essential.
4. Tax planners plan ahead to prevent April surprises
The idea is that by tax day you shouldn’t have to write a check to the government or get a check from the government. Smart, proactive planning is the only way to make sure there are no surprises come April. That type of foresight and planning accuracy is the biggest advantage of a tax planner over a tax preparer.
CWA’s tax strategies are designed to minimize each client’s tax burden by maximizing the efficiency of their business. Schedule your free consultation now and find out more about how an expert tax planning professional, like Chase, can help you achieve your financial freedom.