“Are you filing returns for growth or save on taxes”?

February 27, 2020

Tax Returns are NOT just about saving on your Tax obligations – it is literally the only document that reveals and proves the condition of your Business. It is a chapter of a book discussing your year’s worth of hard work, commitment, success, and journey…shown in the form of numbers and trends.

A successful Entrepreneur will understand that the key to Growth is not only to save on taxes but also to show profitability (bankability).

WHY IT SHOULD MATTER IN BUSINESS FINANCING

• Buying/Starting a Business – When buying or starting a business, it is important that your personal finances are in order, especially to mitigate the risks associated with new ownership. If you have affiliate businesses, then keep in mind that those Tax Returns will also be used to support your new business.

Will your 2019 Personal Tax Returns prove that you will be able to support your personal lifestyle without affecting the new Business Cash Flow? 

Do your affiliate Business Tax Returns prove to have sufficient Cash Flow to support your new businesses if need be?  

• Growing your Business – If 2020 is the year that you will be ready to seek financing to grow your business, then it is important that your 2019 Financials/Tax Returns can prove it. The past 3 years should show an upward trend in Revenues, a controlled trend in COGS and expenses, and a sufficient Net Profit to be able to sustain the new loan.

Do your 2019 Financials prove that you are ready for financing to take your business to the next level?

Have you compared your past 3 years of Tax Returns to identify trends

• Selling your Business – If you are looking to sell your business this year, then know that the “Sale Price” is not the only thing that should matter to you. Your buyer will most likely need financing to acquire your business, and for that, your Business Tax Returns must have enough Cash Flow to show the payback ability

Have you priced your Business sale according to your Cash Flow?

Are you looking to explore other business opportunities after the sale? 

Whether you are looking to start, grow, or sell a business, take advantage of our complimentary consulting session this tax season so we can determine the steps necessary for you to be prepared and bankable.

Call us today (848) 667-9289!