Many small business clients come to a new CPA having never collaborated with a full-service CPA firm like ours. The change from operating a business from a reactive perspective to a proactive stance with proactive tax planning can be life-changing for many small business owners.
Proactive tax strategy changes the future of a local business and coins a strategy name.
Many small business owners find themselves running their business re-actively rather than proactively. Seldom are they able to structure future actions based on past results. Many don’t know those results until mid-October when tax extensions are filed.
Often my new small business clients have never experienced operating their businesses from a proactive tax perspective. Their stories help create this composite experience which result in a business taking a bold, empowering approach to their tax strategy. What followed was the coining of a name for that strategy–Dynamic Tax Management.
The list of topics.
Prior to our first meeting, I sent these co-owners of a popular deli-style gathering place a list of items to bring, and topics for discussion. Jason called me. They couldn’t figure out why I asked these questions just to keep their books. I reminded him I was a CPA.
My list of topics was short:
- What is your business structure?
- What are your growth plans?
- What are your financial plans?
- What is your tax status?
- Do you have a disaster contingency plan?
- Do you have an exit strategy?
The initial appointment.
Good natures made their straightforward, concerned approach seem earnest and eager. “This is what we want talk about first. Taxes.” Although not overtly political, they were both worried about the unknowns and unpredictability of foreseeable and unexpected tax law changes. They wanted to better understand tax possibilities and implications relative as to how they should approach the other topics on the list.
The business needed a tax strategy.
But not just any tax strategy. They were looking for something that forced itself into every business topic, and every decision they made. Both also wanted to maximize tax benefits to their personal taxes. The brothers wanted their business financial planning to offer flexibility and options to the extent that adjustments could be made without losing sight of their goal. Something like hiking a remote trail, getting blocked by a rock slide, and having a map in your back pocket that helps you maneuver around obstructions and keep heading toward your goal. There was a lot to talk about.
Proactive tax strategy becomes Dynamic Tax Management.
We called in one of our tax specialists and an accountant who would also be working with Jason and Chris. The first step was to reevaluate their business structure which, to their surprise, was in critical need of change. We talked about options which would allow their families’ overall financial plans to be placed into more tax-advantageous positions, while offering their business some positive tax choices. The business was extremely popular and generated a lot of traffic. We discussed various avenues for growth and expansion and explored opportunities for increased benefits for their employees. The brothers also contribute to their community and wanted this aspect of their personal and business lives to robustly continue.
We were wrapping things up when the brothers summed it up:
“This wasn’t just tax strategy. Everything we talked about was dynamic,
capable of changing, not static…like an energy or force. It’s Dynamic Tax Management.”
What’s the bottom line?
We establish and maintain a personal and business relationship with our clients. We know that Your BUSINESS is Your Life, and Your LIFE is your Business, and we take both seriously.
Schedule an appointment now. Let’s talk about Dynamic Tax Management for your business or your family.
Contact Melanie Radcaliff CPA, Inc.
Call 479.478.6831 or send us an email