Why Tax Preparation Will Never Be Enough

In today’s fast paced business world, it often is all a business owner can do simply to manage the daily requirements of the business, let alone set aside time to accomplish effective planning. Much of this lack of focus can be attributed to the absence of well defined priorities, and a lack of setting specific goals. This accumulates throughout the year in delays, postponements, and putting off important decisions with an attitude that “I can always catch up later”.

In the world of taxes no more evidence of this effect can be seen than from the rush and frenzy of the industry from January 15 through April 15 each year when millions of taxpayers feel the pressure to file their tax returns. Motivations of getting their refund early, or delaying the filing because they believe they will owe are all symptoms of a bigger problem. A Lack of Focus.

Add to this the fact that most business owners do not believe they can actually control to a large degree that amount of tax they will owe, and you soon have paralysis setting in on the business and its owner who is more concerned about getting that next bid, covering the next payroll, or cutting supply costs to increase profits another 2 or 3 percent.

So off they run to the accountant to prepare yet another year’s tax returns, knowing in their mind that they will not be pleased with the results, expecting yet another year of disappointing results in the amount of tax they will owe. The tax industry of course does little to solve this problem with the reliance on software that in effect simply transfers information from the client’s records to the software, and poof; in a click of a mouse we have your tax return; and all the taxes you owe calculated to the penny.

The preparation of a tax return should be viewed like a football game. The actual return representing the final score of the game and if you played it well; made all the crucial moves downfield; scored several touchdowns; and avoided costly penalties during the playing of the game. Playing the game by following the rules (the Internal Revenue Code); not making bad decisions that result in penalties (costly taxes); and executing well defined game plans (tax strategies) that in effect allow you to play the game in the best possible manner; obtaining the highest possible score (lower taxes); and ending up with a game victory (the tax return) that illustrates how well you played throughout the season (the tax year).

The irony of it all is that it actually takes very little time and effort to develop a well organized game plan; and execute effective plays throughout the year in order to have a winning score at the end of the season. It is far more “proactive” versus “reactive” in the sense that you engage in the planning and playing process on a regular basis, and continue this ongoing evaluation all year, carefully planning each play, and move until you reach a touchdown.

Compare this to a game played by not following the rules; no order to the game or sequence; no planning meetings to review the game plays being considered; then prepare the return and wonder why you lost the game.

San Diego based Tax Smart America, a subsidiary of Smart America Group Enterprises (SAGE) through its unique intellectual property Business Methods Patent has developed game plans for virtually every business type; every transaction consideration; and every counter measure possible that when implemented can mean the difference between a high school football team compared to an NFL Champion. For more information visit the company at www.TaxSmartAmerica.biz or call the company at (619) 469-5800. They offer a FREE Business Tax Plan analysis and business tax evaluation and a No Cost Consultation to show you the benefits of a well defined game plan.

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