James Schramko here. Today’s tip could save you from hardship in the future. I do recommend as a business owner that you stay on top of your taxes.
I went to visit my accountant today. We regularly have reviews. We talked about changes in our revenue, our costs, what we’re projecting, so that we can accurately pay installments as we go during the year and not have a tax bill at the end of the year. In fact, sometimes the tax department owes me a little bit, and I’d rather have it that way.
You need runway in your business. Please don’t let it go for years until you see your accountant, because if you have a big tax bill that can devastate your cash flow, it puts your business under strain, you may not be able to pay your employees, and you can’t grow your business.
So get in touch with a good accountant, stay on top of the numbers, pay your tax installments as you go, and set up your business in the right entity and the right structure so that you’re keeping some of the hard-earned profits that you earn.
So there’s my tip for today, go and see a good accountant, get on top of your numbers and pay your tax up to date, and you’ll be in a good strong position while others get hammered with bad planning.