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?
If so, you’ve only got a little bit longer to do it because there are many tax savings strategies for lawyers that disappear when the new year starts!
. . . 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:
I’m looking at how I can bring down my profit by making investments in my business before year-end that will decrease my taxable income this year, and support my business growth next year.
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.
So, how does this apply to tax savings strategies for lawyers?
- Have you done your profit projections for the year?
- Are you looking at the investments you could be making now to save big on your taxes next year?
- And, if you are providing strategic business counsel services, are you considering these sorts of things with your clients?
If not, you could be. It’s part of being a trusted advisor for them. But, first, you have to do it for yourself.
Want to see exactly what I am doing to bring my tax bill down by $30,000 and have the government subsidize our business growth next year?
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,
P.S. On December 31st ONLY, we’ll have a special tax time savings sale.
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.