Are you a business owning mom who is scared AF to talk about the finances of your business? Then this is the podcast episode for you!
I got the chance to chat with Lauren Loreto about all things motherhood, money, and business on the She’s Busy AF Podcast. We talked about why you need a tax strategy in your business, how to make sure you’re hiring the right person to handle your finances, and how I find balance in motherhood and business. Listen to the full episode here.
Tax Strategy Defined
Most business owners know inherently that they need to do something on their tax return. But they don’t understand how it’s going to affect their taxes, or what they’re required to file. The biggest thing business owners should understand is that having a strong tax strategy can save you money – but you have to be proactive in your tax planning. While you can start planning your tax strategy for the year in March, it’s even better if you start planning for the new year before it happens.
Once business owners hit about the 100k gross revenue mark, that’s when they’ll really start to see the benefits of tax planning. While most accountants or tax preparers just compile the numbers from a business so you can put them on a tax return after the year is over, I as a tax strategist, help business owners come up with legal and ethical ways to lower business owners’ overall tax bill.
This is something that lights me up because I’ve had clients in the past find major savings this way! One client was able to save over $100,000 a year, so he was able to pay off his mortgage AND save for 3 kids’ college educations!
If you decide to partner with a tax strategist, it’s important to work with someone who explains your options very clearly. They should be able to partner with your financial team (your bookkeeper, your financial adviser, your attorney, etc.) to give you the full picture of what you need to know.
Ensuring Your Taxes Are in the Right Hands
There are many qualified tax strategists, preparers, and bookkeepers out there, but plenty that aren’t – and please don’t trust instagram or tik tok. To be sure your finances are in the right hands, you want to make sure you find a qualified person as well as the right personality fit for you and your business. You can read our in depth blog post about choosing the right professional, but here some quick ideas to ensure you have the right fit include:
- Asking them about their credentials. What kind of continuing education do they take? Most states require a minimum of 20 hours of continuing education for a CPA every year (I take between 60-65 each year, for example).
- Asking them for references.
- Interviewing multiple people. In asking them the same questions, that will give you insight into who will be the most qualified and the best fit for you.
- If you already work with a bookkeeper, asking them who they recommend.
- Choosing someone you trust. You’re sharing intimate details of your finances, and you should be comfortable sharing all of them with your CPA. If you hide details, your CPA can’t do their job effectively for you.
Outsource a Bookkeeper
In my experience, I would say that probably around 80% of people out there have money issues.
I think that number is so high because most people tend to suppress their money issues. Finances, whether you’re a business owner or not, weigh heavily on us as individuals and in our relationships. People don’t know what to do or how to do it, and it’s overwhelming; so they just push it away. For that reason, I advocate that one of the first things you outsource for your business is bookkeeping.
It’s crucial that you know your business numbers. If you don’t, there’s nothing I as a tax strategist can do to help you! I’ve had clients who say they’ll do their own bookkeeping… but the reality is, when you’ve worked a 10 hour day as a CEO, COO, customer service rep, administrator, and more… The LAST thing you feel like doing is entering numbers into QuickBooks.
Work/Life Balance and Being Present with Kids
I truly believe that you can’t pour from an empty cup. I try to make time for myself so that I have something to give my kids – and for me, that means getting my nails done.
I have a standing appointment every three weeks to get my nails done. I get a neutral gel color so it lasts three weeks, and it’s only about an hour-long appointment. Doing my nails is the thing I do for myself that helps me feel put together – even if my hair is a mess and I have no makeup on. It’s really, really big for me.
Another business owner mom out there might prioritize going to yoga or pilates once a week for an hour. You have to choose what’s important for you!
I do a lot of work on the weekends, early in the morning, and late at night after the kids have gone to bed. I also do grocery shopping and errands during the day (which let’s be honest is mostly curbside pickup LOL), so I don’t have to compete with the crowds, which also enables me to work nights and weekends while the kids are home playing together or napping. This lets me be present with my kids during the day when it matters most.
I haven’t always felt like I had a healthy relationship with work, but I do now. I did some reflection on that a couple of months back. I realized in my first 12 months of business, I said “yes” to everyone and I made 6 figures – but I was burnt out AF.
With each child, my time has become more and more precious because I have less and less of it. My gross revenue for my business for the last 4 years has been the same… and I’m okay with that, because it serves my family financially and it allows me to be a present mom. I’ve been at school for the Thanksgiving feasts and Christmas parties, and that’s the priority right now.
I don’t want my kids to constantly see me on my computer and phone. They see me do laundry and dishes, which is fine, because they need to understand what it takes to run a household… but I don’t want them to see me working alwayssss working. I prioritize the time during the day or after school to spend with them. That’s how I find work/life integration.
Resources Mentioned
Everything is Figureoutable by Marie Forelo
The Compound Effect by Darren Hardy
Think and Grow Rich by Napoleon Hill
Want more? Check out the full conversation here.
*This is not tax advice for anyone reading or listening. I am not your tax professional. If you would like more information on working with our firm, you can download our Services Guide here.
