It's year end and time to focus on taxes right? I disagree; I'm focused on our business 2021 financial forecast and sales plan. Why? My taxes are basically done.
I turned in my business and personal financials to our CPA back in late November. He reviewed them, we chatted about my tax obligations and I moved on.
I have a really good feel for my tax obligations come April 2021. There will be no surprises; no stress and I can focus on more important things.
What is more important than taxes? For me lots of things: our 2021 sales plan, where I will be fishing this summer, my wedding plans etc.
How do you know? Are your books up to date? Are you running your business blind?
So many people and businesses wait until the end of the year to pass and then think "oh no its tax time."
Then they spend the next three and a half months figuring out, stressing over and filing their taxes.
What a waste of time and effort. Then once taxes are filed in April at the last
minute they go back to focusing on more important things.
Maybe they focus on growing their business or planning a summer vacation, but they certainly don't focus on taxes.
Oh by the way while you were working on your taxes you missed the first quarter of 2021.
How did it go for you? Are you on track with your sales goals? Do you even have sales goals? Are you ahead of the first quarter of last year?
Do a few things differently in 2021:
Keep your bookkeeping updated at least once per month if not once per week
Use your bookkeeping system as a tool to run your business
Use your updated bookkeeping system to review your taxes with your CPA in late November/early December
Use your bookkeeping system to develop next year's sales goals in November and December so you hit the ground running in January with a plan