It’s too late to make any changes to your taxes for this year, but if you want to win after taxes next year, there are two things you need to action within the next two months.
1. Nurture your relationship with your Accountant.
Your accountant and bookkeeper are part of your team...so WORK as a team! Schedule a meeting after tax season to discuss what you could be doing better in your business from their perspective. Maybe you aren’t claiming as many expenses as you could. Maybe there are financial holes they see, but because you are only dropping off and picking up your monthly books, there hasn’t been the opportunity to connect and go over your spa business with a professional accounting eye.
Last month, I met with my accounting team to make sure my 2016 financial goals were lining up with how much I should be putting away for next years taxes, my best options for savings in my business (RRSP vs. TFSA) and when I should be incorporating my company. I walked out of their office feeling really confident about my financial game for 2016.
See, you don’t know what you don’t know. Be proactive and make sure you have as much financial information as you need so you can make wise financial decisions and be prepared for next year’s taxes.
2. Pay Very Close Attention to Your Numbers
I get it. Planning your yearly financials is NOT the most exciting action step to take. But I GUARANTEE, it will change the way you operate & generate business if you do. You will finally understand why there isn’t enough money at the end of the month (or year), even though you had great revenues.
If you have a large tax bill at the end of the year, it’s because you didn’t plan for it. If you aren’t paying attention to ALL of your numbers, it WILL come back to bite you in the ass…every time. If you were having a stellar year and weren’t analyzing your numbers, you didn’t give yourself a chance to protect your income.
You didn’t give yourself the opportunity to course correct your spa business before it was too late. And that can be expensive.
The best way to plan for winning after taxes is to Cash Flow Forecast. Tweet this!
This is not an exceptionally difficult task…but it is one of those “frogs” (awesome book, BTW) that although maybe boring and a bit frustrating (learning anything new is), it simply needs your commitment & accountability to make a HUGE impact to your bank account. And unfortunately, being spa owners, we are typically a group adverse to learning about finances (can't I just keep giving awesome treatments?) and we're even worse at following through on it.
If you are tired of being surprised with your tax bill every year, spend the next few months committed to creating your 2016 cash flow, then schedule a meeting with your accountant to go over how much money you should be putting away every month.
Financial suffering sucks. For me, it’s directly tied to my inner-critic (he’s such a jerk most times), which can send me spiraling into negativity about how smart I am. And it takes a pep-talk from my inner-mentor to set the record straight: you’re not stupid Kirsten, you were simply unprepared. Next time, you’ll do better because now you know better.
If you are financially suffering in your spa business, it ends with knowing more and, committing to doing better.
Check out Cash-Strapped to Cash Flow online program specifically for spa owners. Starts April 18th, 2016. Early bird price ends Sunday, April 10th.