By Daniel Rodriguez | Dr. Budgets
Our last blog post was an interview with a tax professional, and he had some great tips on preparing for taxes! Here are a five ways that Dr. Budgets helps you with your taxes:
Financial Organization. Working with a Dr. Budgets money coach helps you get your financial life in order. Being organized financially makes tax time much more manageable.
Business and Personal Budget. Having a separate budget and bank account for your business really helps at tax time! Many of my clients would spend days (even weeks!) preparing for their taxes before working with me…now it only takes them a few hours.
Save for Taxes. Many of my clients come to me with tax debt because they didn’t save enough for their tax bill. When you work for an employer, you don’t have to think too much about this because taxes are automatically deducted from your paycheck. When you have a business, you have to have a savings plan in place to factor in your future tax bill. I build “saving for taxes” into my clients’ budgets so that they are prepared for the inevitable payment to Uncle Sam.
Refund Allocation. For those client who pay too much in taxes during the year and subsequently receive money back from the IRS, I am able to help them decide where to put that money. The temptation to spend that money without a purpose is easy, so I help my clients determine how best to use that money to further their goals.
Introduction to a Tax Professional. Most of us are not tax experts (I am definitely not!), so I often recommend my clients talk with a tax accountant (CPA or EA). It is important to work with a tax professional you can trust, so we often introduce our clients to someone in our trusted network of professionals when they have a financial need that is outside our area of expertise.
Stay tuned for another tax related post later this month. As always, please contact us if you want help achieving your financial goals or if you need an introduction to any type of financial professional.