So, you booked your first tax consultation for your small business. Look at you being all responsible and proactive.
But now comes the part where your brain goes:
Wait! What am I supposed to bring?
Do they expect spreadsheets?
Should I organize my receipts by color? Alphabetically? Chronologically?
Stop. Take a deep breath.
Your tax consultation isn’t a personal attack on your bookkeeping system (we’ve seen it all, promise). Our job is to understand where you’re at right now and spot opportunities to help you move forward with a smart, clear plan for managing your income tax bill.
Even better, we make sure you’re taking advantage of the tax benefits, tax credits, and tax savings available to you under the current tax code.
That said…walking in prepared to your meeting is a big help. The more clarity you bring to the table, the more strategic (and less surface-level) your conversation can be.
Before you rock up to your tax consult, read our quick checklist to help you walk in prepared to lower your taxable income and ready to squeeze every bit of value out of our time together.
Be clear on what you hope to achieve from your tax preparation
Ahead of your call, take five minutes to think about what would make this meeting a success for you.
We can skip the rigmarole and get straight into the tax planning strategies that’ll make your life a whole lot easier.
A great idea is to jot down any tax planning questions floating around in your head before the meeting. You know, the things you’ve been wondering about at 10pm when you suddenly remember you own a small business. These could include:
- What expenses are tax deductible
- How to manage estimated tax payments
- Payroll structure and owner compensation
- Strategies to offset capital gains
- The tax impact of charitable giving
- How your ordinary income is being taxed and whether your current tax rate makes sense
- Whether contributing to retirement accounts or setting up a retirement plan could lower your tax liability
Having your questions written down keeps the meeting focused and makes sure you walk away with clarity instead of remembering later that you forgot to ask about something.
Gather important tax documents
Now that you’re clear on what you want from the meeting, it’s time to bring a few important pieces with you.
Don’t panic – no one expects you to have a 300-page binder or perfectly color-coded spreadsheets. But having your main financial documents handy makes the conversation more productive all round.
Even if your numbers aren’t perfectly organized, bringing what you have is far better than relying on memory.
Here’s a simple guide for what to gather:
- Your most recent personal and/or business tax return
- A current Profit and Loss statement (year-to-date if possible)
- A Balance Sheet (if you have one)
- Details of estimated tax payments made so far
- Payroll reports (if you have employees)
- Information on any major purchases or investments
- Details of any new loans or lines of credit
Make sure your numbers are up to date for the most accurate tax advice
Before we meet, spend a little time getting your numbers current. When your income and expenses are up to date, everything flows better. If you’re doing a quick tidy-up, here’s where to start:
- Reconcile your bank and credit card accounts so the balances match.
- Categorize any uncategorized transactions.
- Make sure all income has been recorded.
- Double-check for any big expenses that haven’t been logged yet.
Even setting aside 45-60 minutes to bring things roughly up to speed can go a long way.
Know how your small business is set up (and which tax bracket you’re in)
Is your business taxed as a sole proprietor, partnership, or corporation? And how are you paying yourself from the business? These are important details that affect how your income is reported and what tax you may owe.
Afterall, how you set up is the foundation for every tax saving we can find. If we know where you’re starting from, we can see if your structure still makes sense for the size of your business today.
Don’t forget, a setup that worked when you started might be holding you back now.
Be ready to talk about the future
A good tax chat is more focused on where you’re headed rather than where you’ve been.
If you share where you’d like the business to head, it completely changes the kind of advice we give.
It’s the difference between making decisions that just get you through the year and making ones that set you up for what’s next.
You don’t need a grand master plan or a vision board with revenue targets pinned to it. Just a sense of what you’re aiming for is enough. When we know that, we can help you structure things in a way that supports that direction instead of accidentally working against it.
Wrapping up
At the end of the day, your tax consultation is simply a conversation – one designed to give you clarity and show you what’s possible.
If you show up with a general idea of what you want, your key documents in hand, your numbers reasonably up to date, and a sense of where you’re headed, that’s more than enough to get the ball rolling.
From there, it’s our job to look for opportunities you might not see on your own – ways to structure things better, plan ahead, reduce your overall tax liability, and ultimately keep more of what you work so hard to earn.
Chat with our tax consultants for effective tax strategies
If you’re tired of second-guessing your tax deductions, stressing over income tax deadlines, and scrambling through tax preparation at the last minute – you’re in the right place.
A consultation with Tax Savvy Advisors gives you access to professional tax services designed to help you lower your tax liability and get ahead of tax season. With our team in your corner, you won’t have to wonder if you’re doing it right.
Take our Fit & Pricing Quiz to find the package that fits your needs and we’ll schedule your consultation ASAP.
