Beautifully Frugal: Entrepreneurs Part 1 - Maximize your Success.
I love Entrepreneurs. They are people who know how to follow through on setting goals and achieving them, while chasing their dreams. Entrepreneurs are curious, decisive, have tremendous passion, and they care about perfecting their craft. These are the kind of people I aspire to be like. This month’s blog will focus on encouraging aspiring entrepreneurs to chase their dreams and provide some helpful education on being successful in the industry.
To assist with this topic, I reached out to one of KerberRose’s CPAs and Shareholders, Brian Wild, who has more than 20 years of experience in accounting, finance, and tax, making him an excellent resource to elaborate on ways entrepreneurs can maximize their success. So, where to start?
Get An Accountant
In all of Brian’s wealth of wisdom and experience, he believes getting an accountant is the one task where many entrepreneurs miss the mark early on.
He says, “A lot of entrepreneurs don’t have much upfront capital to start their business and they tell themselves to save money, ‘I am going to do all things related to taxes myself.’ Yet, in all honesty, they miss out on tax savings simply because they are not experts in this field.”
Wild expanded on this topic of the importance of a CPA by stressing the importance of proper financial planning. “If we have a client who wants to become an entrepreneur, we tell them months before their launch to get a tax advisor engaged in this process. Chances are, we are going to save them a lot more money than what it costs to pay for their own CPA.”
Deductions or Credits: Know the Difference
Some individuals struggle understanding the difference between a Tax Deduction and a Tax Credit. Deductions reduce your income before you calculate the taxes you owe. This can be advantageous to entrepreneurs as it helps reduce the amount of taxes they pay because taxable income is reduced come tax time. Credits reduce the amount of tax you owe, or increase the tax refund you might receive. As an entrepreneur, there are a multitude of deductions and credits you can claim, which is why we encourage you to have an accountant on your team, as this will become beneficial to you early on.
Leverage Technology To Track Your Tax Deductible Expenses
Although tracking your tax deduction expenses seems logical, it can be easily overlooked amidst the chaos of running a new business. Luckily, we live in an age where technology continuously improves our lives. There are a plethora of apps which have the capability to help entrepreneurs with tasks, such as gas mileage trackers, receipt savers, tax break calculators, etc. Stay organized from the start! Do not let these simple things get lost in the chaos.
Delegate…Outsource Your Payroll
If you are launching a business where you will need employee operations, outsourcing your payroll is another task Brian suggested as a huge benefit to entrepreneurs. By outsourcing your payroll, you are delegating the task to another person, allowing you to focus on more important matters. Entrepreneurs tend to have an “I’ll do it myself” mindset, which makes them extraordinary individuals. However, delegating to a trusted support team will only strengthen your business in the long run — outsourcing your payroll team is one of many possible delegation decisions. By delegating this task to someone else, you can save yourself from untimely and inaccurately filing, which can lead to numerous IRS and state notices compounded by penalties and interest. Be smart, and learn to delegate tasks to others to become successful.
Stay Tuned for More Tips
There are plenty of different ways entrepreneurs can set themselves up for success, so much so, I have decided to make this a two-part series. Next month I will be going into greater detail on how entrepreneurs can maximize their tax deductions to assist with investing for retirement. Naturally, working in wealth management, I feel the need to touch on this topic. So, stay tuned, and remember: here at KerberRose we are ready to assist with any and all your financial questions and concerns. If I don’t know the answer, there is someone on our team who does. Until next time!
