I work closely with my financial team and tax accountant at year-end to ensure I pay as little taxes as possible and maintain as much control over my resources as possible. Do you do the same?
. . . and, yes, that’s in just over two weeks!
Personally, I far prefer to decide where my money goes, rather than just sending it off to the government to use in ways I don’t necessarily agree with.
This year, I got the projections from my accountant and it looks like for every $50,000 of profit I make this year, I’ll pay $15,000 in taxes.
So, what that means is:
One of the things we always do is payout year-end bonuses to our team, so they are effectively sharing in the profits of the business. In the future, I will be setting up a profit-sharing system to make this more formal.
But, currently, what we do first is to look at how much profit we have at year-end, which investments we want to pay upfront now that will benefit us in the future, and how much of the remaining profit we need to retain in the business to qualify for future business growth financing we may need. Then, we pay out the rest to our bonus pool, shared among all of our team members.
If not, you could be. It’s part of being a trusted advisor for them. But, first, you have to do it for yourself.
I'll be sending info out about that soon . . . sign up here.
In the meantime, comment below and let me know what you are doing to save big on your taxes in the next 2 weeks so that you grow your law practice in 2020, and have a smaller tax bill in April.
To a life and law practice you love,
It's on that day only because that way you get the deduction in 2019 and we don't get the income until 2020. And, you get what you need to make massive improvements in your life and law practice. Win/win.
Want to talk about what that could mean for you and your law practice in 2020? Click here to schedule your call with a Law Business Advisor.