Common Tax Mistakes That Private Practice Owners Make
As I've worked with more Private Practice owners, I've seen a pattern of common (and costly) tax mistakes they make. Here are 3 common mistakes that have cost Private Practice owners way too much money!
1. Not being proactive - Everyone is required to file tax returns to report their income. The problem with this is that everything has already been said and done. You can't change the past. The solution: find someone who can plan your taxes for you. Yes - that is a thing! By projecting your profits and predicting your tax liability, you will be able to create scenarios that will help you proactively minimize your tax liability.
2. Not being under the correct tax entity - this is a huge mistake I see all the time! Often times, I see that business owners either pull the trigger too early and become a corporation, or they do not switch their tax entity quickly enough. Corporations can be costly, but the benefits may outweigh the costs. It is ideal to do a cost/benefit analysis to make sure the timing is right.
3. Not being organized - Love it or hate it, without proper bookkeeping, you WILL miss tax deductions. Not to mention that tax season is stressful while you gather all the bank statements, receipts, and other documents you need to file your taxes. I always recommend Quickbooks Online because it is extremely flexible and it will scale with your business.
If you don't feel confident about your taxes and feel you are paying too much, there is no better time to start working with us than now.
Are you ready? Schedule a free 15-minute strategy session with me https://linktr.ee/jeanetteandrada
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