3 Tips to reduce your tax liability next year

One of the the most important things many of us do not do is plan. Many of us go with the flow, living unconscious and live doing what society suggest to do. 

Society suggest we get a job, so we get a job, 

Society suggest we go to school, so we go to school,

Society suggest we buy a home, so we buy a home.

Society is always telling us what to do but never how to do it.

Many of us are trying to get away from the norm and take control of our own life. We are focus on being our on boss. One thing I want to do is not only be the boss but stay the boss. It is absolutely amazing how many are taking control of our life, future and finances. One thing we want to make sure of is that we are not just doing it because that is what everyone else is doing. A business without a plan will fail. 

The internet has made it easier for many of us to start our entrepreneur journeys. Quick sales and fast money through mentoring, coaching, consultants. These overnight profits are left not managed with no plan. 

So I have three simple tips you should consider before the tax year end. Remember, you should have a good idea of your business financial position by the 4th quarter of the year. This is were the last minute planning happens. Whatever didn't happen throughout the year will most definitely need to be done by 12/31. 

A lot of entrepreneurs wait until their taxes is due the following year to see how they can reduce their taxes. Let's not do that. 

So I have three tips for you. 

Invest in yourself

One common thing many business owners can do is contribute to a retirement plan. Contribute the max amount. If you have maxed out, you can open as many IRA accounts as necessary to contribute to yourself rather than pay the IRS tax on unspent profits.

Invest in your business

You can buy software, purchase assets like a car, equipment, software that will enhance your business. This purchase will not only increase the assets in your business but it will also reduce  how much taxes you will pay the IRS.

Invest in the stock market

Businesses can invest in real estate and in the stock market. This is the best way to save or retain money in your business but also get a return on it. I suggest as the CEO of your business you learn how to invest in the stock market. Financial education is imperative to reduce risk, increase success and faith in the stock market. 

So the truth is many owe quite a bit of money to the IRS due to lucrative online businesses. The first couple years may have been unexpected, but going forward you should have more of idea of what will work best for you in your business. If we create the profits, we should plan to keep them!

Life and finances go hand and hand. When your finances are in order you can live a quality life. When your personal life is in order you can successfully build wealth. Although money isn't everything, money do answers all thing.

Grab my  eBook 5 must knows to Build Wealth