Hi, it’s Hilary, and it’s time to talk about Uncle Sam…
The end of 2021 is fast approaching, and so is your tax bill.
Do you have enough cash set aside to cover your 2021 taxes? If not, IRS debt is in your future, and if that’s the case, you’re not alone.
You may be surprised to know that many of our successful wealth coaching clients have IRS debt! Yes, that includes business owners with seven-figure businesses, as wild as that may sound.
How does that happen? Did you catch our last issue of Profit Boss® Weekly where we talked about Parkinson’s Law?
If not, it’s okay — quick refresher: Parkinson’s Law means as human beings we’re naturally drawn to increasing our appetite for a resource up to as much of that resource is available to us.
Translation: if you have eight hours to do a one-hour project, you likely take the full eight hours to complete the one-hour project.
(I do that with prepping for speaking gigs. I have weeks, sometimes even months to prepare, but without fail, there I am the night before typing up my talk. Embarrassing, I know.)
It’s the same principle with money. If you have $1,000 to complete a project, then you get it done with $1,000. If it’s $10,000, you use the full $10,000.
It’s human nature to use up an entire resource.
A perfect example of this is ‘tax money’ if it’s mixed in with your business account.
You may be ‘mentally’ setting it aside… until you see that one thing you really want for your business. Ciao, tax money!
…And hello, IRS notice. Ouch.
Can I show you a better way? Instead of doing your business budgeting by your bank account, what if you set up a separate bank account and save for taxes throughout the year?
While you’re at it, why not set up a system that pays you a profit for every dollar you make?
That’s the Profit First model – and our team at Hendershott Wealth Management is one of fewer than 100 firms to be Profit First Certified.
With the right planning, you will never have to worry about your tax bill ever again. Ever.
It’s hard to explain the pride and joy our clients experience when they pay off their IRS tab and know they’ll never be in debt to Uncle Sam again.
Celebration is an understatement!
More importantly, you can ensure your business generates a great profit you actually get to enjoy. It’s that simple.
To your prosperity,
Hilary
P.S. – If you’re staring down a massive tax bill you already owe from previous years, Profit First is also a great plan for paying off IRS debt. It’s easier than you may realize. If IRS debt is stealing your sleep, let’s fix that for you. Hit reply and let our team know what you’re going through right now.
