Are you playing small to avoid a tax bill, a truly shocking number of business owners have told me that they are scared to grow their businesses because they're going to end up paying more in tax.
And it's a bit of a weird, limiting mindset that often is contagious from their accountants. Your accountant is supposed to be an expert at advising on tax compliance and tax reduction, but not necessarily on business growth. And certainly, they shouldn't be scaring you when it comes to making money.
If you flip your thinking to "the more tax I pay, the more money I have earned", you can start to build some more positive connotations around business growth.
If potential tax bills have you playing small, then your first simple solution is a great bookkeeping system like Xero and a bookkeeper who will keep you up to date. The investment often turns micro and small businesses off.
But, if you want to increase profit
You need to invest in the tools to make that as easy as possible. It's an essential running cost of your business. It is more essential than those money mindset courses and all of those professional photoshoots and that expensive branding package that I see many of you spending money on
We have just tackled tax planning in Members Club because I don't want you to just create $100k+ in Profit, I also want to see Profit Lovers feel in control and confident with their money. What's the point of creating great profits if you're not the one in control!
Can't I just leave this up to my accountant and bookkeeper?
I can share more than a few stories about business owners relying on advice from accountants and bookkeepers that ended up bitting them BIG time! I am talking about a mum to be who was in her second year of business and ended up with a $187,000 tax bill. Let's avoid that kind of shock in your business!
Ultimately it's your business and your financial future at stake, so let's put you in the power position and get you prepared for big things ahead.
Did you know the Profit Lovers Plan + Track Ultimate has a profit planner?
and in Members Club we take it one step further with a customisable money management calculator
Here are some tax planning resources to get you started
- Tax Calculator for Aussies so you can test out how much income tax you need to pay on your personal earnings
- Xero, the bookkeeping system I recommend the most so you can stay on top of your numbers and start behaving your way to success!
- Profit Lovers Members Club to fill in those gaps in knowledge and create a money management approach that empowers you to scale your profit with confidence
Not sure if it's worth investing in Xero?
Here's a great blog post explaining the benefits of investing in a bookkeeping tool like Xero.