If you’re looking to pay less in taxes, grow your business, and constantly learn and improve, you need a CPA behind you. The right professional can help with these things as well as educate you on how tax planning can help you reach your goals.
We’ve come across client transactions that have already happened by the time we find out about it. That means there is very little tax planning that can take place, which means it can be hard to reduce any tax owed.
Five areas that you need to consider in your tax saving strategies for your law firm.
What You Need to Know Regarding Changes to the Entertainment Expense Deduction
We are all in the relationship business. Relationships lead to Sales. Sales lead to Profits. Many times, to cultivate relationships, we wine, dine, and entertain our current clients and prospects. Thanks to the Tax Cuts and Jobs Acts the expenses that you previously wrote-off may no longer be deductible.
A group of my peers were recently discussing a blog post written by another service provider encouraging business owners to spend as much as possible and decrease revenue as the year is wrapping up. Here's my professional opinion on that statement- What a Load of Crap! Yes, we all want to pay the least amount of tax as possible, but wouldn't you rather have the after-tax cash than no cash at all? You should never want to make business decisions solely based on saving on taxes. As my CFO friend Philip Campbell says, "the term write-off turns smart people into horrible decisions-makers."
My advice (it's free advice so it may just be worth what you paid for it), make spending decisions based on operations. Will the purchase make you more profitable, more efficient, or above all else, does it help you reach your quarterly priorities, annual goals, or 3 year vision?* If the answer is no, then don't make the purchase.
(*If you don't have quarterly priorities, annual goals, or a 3 year vision you need to take the time to do so and figure out where you want to take your business)