Life, Mastered with Molly Claire 168. Essential Tax Advisor Strategies to Improve Your Coaching Business’s Financial Foundation with Sandy Tapia
A tax advisor offers strategic planning to maximize your financial success.
As the end of the year approaches, there are key things you can do with your coaching business that could have a pretty big impact on the taxes you pay this year. Having a handle on your numbers and knowing how to handle tax advantages means more money in your pocket and a better quality of life. This is where the expertise of a tax advisor comes in. They will help you be smarter with all the hard work you're putting into your coaching business.
Tax Advisor vs. Tax Preparer
You can go find someone to prepare your taxes. However, there is a big difference in your financial strategy between a tax preparer and a tax advisor. As a coach building your business, you wear so many hats! And there are far too many skills to learn at once. When it comes to being smart with your taxes and money, make sure to get the right help from the beginning.
- Tax Preparer: They will take the information that you give them and prepare and file your taxes for you.
- Tax Advisor: They have a conversation with you to learn about your business and spending habits. They identify things in the tax code that are allowed based on your life and business activity and give you recommendations on what to invest in.
When you work with a tax advisor, you are not only looking at this year's tax return but are setting long-term financial goals and putting strategies in place. We are always conscientious about what we are spending money on, and hiring a tax advisor can seem like another expense that is a nuisance. There’s great news for you! Sandy will evaluate if working together is really going to be a financial benefit before you hire her. Yes, that’s right - it’s a guaranteed return on the investment.
Bookkeeper vs. Accountant
As you build your coaching business, you’re likely tracking finances (or using a bookkeeping service to do so). Did you know that there is a significant difference between a bookkeeper and an accountant when it comes to building your financial strategy?
- Bookkeeper: They are trained in how to use the software that tracks your expenses. They might manage billing and payroll.
- Accountant: Accountants, on the other hand, use bookkeeping records to provide in-depth financial analysis. They will check for errors to make sure that your financial statements are correct and can give you strategies about cash flow and where you can cut spending.
While bookkeepers lay the foundation with meticulous record-keeping, accountants build on that to guide financial decision-making.
Sandy Tapia
Sandy Tapia is the founder of SPT Business Consulting LLC. She is a seasoned certified public accountant (CPA) and business professional with a strong academic background and over 20 years of hands-on experience in financial compliance, auditing, accounting, and tax reporting.