Tax Expert Explains How To Get Ahead of 99% of Businesses

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Dec 25, 2024

Discover how small shifts in your business structure can set you ahead of 99% of companies. Establishing a solid entity structure, like transitioning to an S Corporation, could unlock significant tax savings. Emphasize the importance of cloud-based bookkeeping for accurate financial management. Learn to use financial data to identify inefficiencies and manage costs effectively. Explore strategies for converting personal expenses into tax-deductible business costs and take advantage of key deductions to maximize savings and fuel growth.

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ADVICE

Entity Structure for Growth

Create a proper entity structure, like an LLC, to lay a solid foundation for business growth.
This structure offers protection and scalability, and it can be adapted (e.g., to an S corp) as your business evolves.

ADVICE

Cloud-Based Bookkeeping

Implement a cloud-based bookkeeping system (e.g., Xero, QuickBooks Online) and update it regularly (at least monthly).
This helps identify inefficiencies, make informed decisions, and track your business's financial health for tax planning and growth.

ADVICE

Proactive Tax Planning

Adopt a tax-planning mindset.
Learn about government incentives for businesses and actively implement them to minimize your tax liability.

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What if a few simple shifts in your business structure and financial habits could set you ahead of 99% of companies?

In this episode, Mike Jesowshek, a CPA and founder of Taxelm, shares practical strategies for small businesses to gain a competitive edge without requiring massive investments or risky tactics. He emphasizes the importance of establishing a proper entity structure as the foundation for growth, maintaining an accurate and cloud-based bookkeeping system, and utilizing financial data to make informed business decisions. Mike also highlights key tax deductions and offers resources to help business owners optimize their financial strategies effectively.

[00:00 - 04:50] Introduction: Setting the Stage

Mike introduces the theme of outpacing 99% of businesses with simple, effective strategies.
Success doesn’t require excessive risk or investment; it starts with foundational business practices.
Transitioning to an S Corporation can lead to significant tax savings.
A well-structured entity is essential for tax efficiency and long-term growth.

[04:51 - 10:00] Building a Solid Foundation for Growth and The Backbone of Business

Mike shares the importance of creating a management company structure for multiple business entities.
Clear and organized entity structures reduce risks and enhance scalability.
Consistent bookkeeping helps identify inefficiencies and drives better financial decisions.

[10:01 - 19:26] Leveraging Financial Data and Resources

It is vital to use accurate financial statements for tax planning and business strategy.
Mike offers a free document outlining tax deductions to maximize savings.
Proactive financial management unlocks opportunities for growth and profitability.

Direct Quotes:

“Your entity structure is the foundation of how your business operates and grows.” - Mike Jesowshek

“Bookkeeping isn’t just for taxes; it’s the backbone of understanding your business’s financial health.” - Mike Jesowshek

“A cloud-based system done correctly gives you actionable insights. Done poorly, it gives you nothing.” - Mike Jesowshek

“With the right foundation, you can grow into the 1% of business owners who succeed at scale.” - Mike Jesowshek

Check out this episode’s blog: The Ultimate Guide to Maximizing Business Deductions and Write-Offs

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join TaxElm: https://taxelm.com/

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Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

YouTube: www.TaxSavingsTV.com