Q4 Money-Saving Tax Planning Strategies

Raise your hand if you want to save money on taxes. One common complaint I get as a Certified Public Accountant is that clients complain that their tax preparer doesn’t do much to save money on taxes. I always ask how many times a year that the individual meets with their tax preparer, and usually the answer is once – once it’s time to fill out tax forms.

The truth (and secret sauce) is that tax planning is a YEAR ROUND ENDEAVOR. Once December 31 rolls around, there are very limited things that even the most seasoned tax preparer or strategist can do to help you edge that bill down.

In case you haven’t figured it out yet – the time is NOW to start to save money on taxes for the 2024 year. Here is your play-by-play game plan:

Save Money On Taxes Tip #1: Update those Books

Make sure your bookkeeping is up to date. I know it’s cliche and there are eleven billion advertisements on social media of all sorts of bookkeepers telling you that up to date books helps you make data driven decisions (blah. blah. blah. – and I’ve even posted about that, as well – but I also know it’s SO MUCH MORE than just for decision making.)

As a side note, your bookkeeping is only up to date if your balance sheet accounts are reconciled, and you have resolved any entries that are inaccurate.

If getting books caught up is overwhelming, Abundantia Advisory can help. Simply head to our contact page, and set up a call. Alternatively, you an check out our Bookkeeping for Tax Prep course to have a step-by-step guide on how to keep track of your business data either by spreadsheet or software so that you can crush it at tax time.

Save Money on Taxes Tip #2: Make Sure You’ve Captured All Expenses

It’s not unusual to pay for something for your business personally. Comb through your credit card and bank statements to find potential business expenses that have been forgotten. Enter them into your bookkeeping system to make it easier for your tax preparer.

To enter the transaction, you would debit the expense but instead of crediting cash or credit card, you will credit owner equity.

Save Money on Taxes Tip #3: The Healthcare Savings Account (HSA)

One of the highest costs for families is health insurance. However, you can save money on healthcare premiums AND build wealth for the future through selecting a high deductible healthcare plan. With this type of plan, you can set up a Healthcare Savings Account. (HSA)

The HSA allows you to contribute up to $8,550 as a family to an account that you can invest and grow for current and future medical expenses. The entire amount is tax deductible, and it grows tax deferred. When you take money out for medical costs, you don’t pay tax either.

The best part? When you’re 59.5, you can take money out for ANY REASON tax free.

A current tax deduction, tax deferred growth, and tax free income in the future – that’s a huge wealth building vehicle that you don’t want to sleep on.

Save Money On Taxes Tip #4: Talk to Your Tax Strategist

Once your bookkeeping is up to date, your tax strategist can sit down with you and project your potential tax liability. They can then offer up customized strategies that make sense based on your goals, cash flow, and situation.

If you don’t have a tax strategist in place, we are accepting new clients. Mention this blog post and receive our offer: Tax Strategy for $997, and we guarantee we can show you how to save at least $997 on your taxes – or we will refund your fee! (Disclaimer: if we find the strategy and you do not implement it, then you would not receive a refund).

What comes with a tax strategy? We will map out exactly how to structure your personal and business affairs to take into consideration optimal tax savings. We will provide referrals to attorneys and financial planners as needed to help you implement the plan. We will also outline specific tax strategies that would work for your situation. This is not the standard “Did you buy a car this year” tax planning. This is helping you meet your lifestyle and business goals using the tax code.

You can have a no-obligation call to discuss this by going to www.myabundantia.com/contact

Taking sometime to plan for tax season rather than simply getting your taxes prepared is next-level entrepreneurship at its best. Once you save money on taxes, you will have more to invest into other business activities, retirement, or real estate – whatever floats your boat.