One thing I see a lot of entrepreneurs doing is trying to choose their own path with their tax strategies, as opposed to seeking the advice of an expert.
You really should be sitting down with your CFO or your accountant or both, and making sure that you have the most effective tax strategy for you and your company.
And I think it’s really, really important that this is not just thought of at the end of the financial year. A lot of people will, in June that’s just passed, think about throwing more money into Super, think about spending the extra money to get tax deductions and that’s all well and good. But you need to seek advice from your advisors on whether that’s the right strategy for you.
Having an effective tax strategy actually involves having the right structures. It involves having the right advice and setting things up correctly from the beginning, not just at the end of the financial year.
For the short, medium, and long term, you need to ensure that you’re structured correctly to make sure that you’ve got the most effective tax strategy you and your business can have.
The other thing to consider here is that your tax strategy for your company and your tax strategy for you personally, need to align as if you’re the sole owner of your company. You can’t just have a business tax strategy because, at the end of the day, you own a business in order to create wealth and generate profits so that you can live a life you want and invest in other assets and the like. So it’s really, really important that you have an effective tax strategy, that aligns both business and personal. And like I said, if you haven’t sat down with your accountant or your CFO, I highly recommend that you do.
One of the things I do is help our clients understand their effective tax strategies. And I work with their accountants and the like to ensure that that’s implemented correctly. Just so you pay the right amount of tax. And that’s what’s really, really important here. At the end of the day, we all have to pay taxes. It’s just part of the society that we live in. We just want to make sure we pay our fair share. We don’t want to pay too much or too little.
We want to play within the rules. But we need to understand the rules and then how they can be used in the right way to ensure that you have an effective strategy. That means that you don’t over or underpay.
If you need any help with this, please feel free to reach out. We can arrange a quick chat or alternatively, I’m happy to arrange a call with you and your accountant, just to confirm the strategy that you’ve got.
Lastly, don’t try and get too fancy with this. When people try and get too fancy with tax strategies, inevitably, they come back to bite them. But you need to get the right advice. You need to surround yourself with the right advisors in order to make sure that you have the most effective strategy.