As the end of the year approaches, there are a number of ways to prepare financially. Practitioners have their heads in the books; they are scurrying to get everything out the door. But if you consult your CPA and put the right system in place, you will reduce your headaches and make moves to build your wealth. At the end of the day, it’s about generating wealth and legally giving the least amount to the federal government so you can keep more of what you make. In this solocast, I compiled my favorite money-saving tips from 2019.
- Are you operating out of the right type of business entity?
- Have you set up and fully-funded your retirement plan?
- If you’ve hired and paid family members, have you documented how you’ve paid them?
- Have you documented your home office and/or home athletic facility?
- Do you have an accountability plan that allows you to deduct the expenses above?
- Did you contribute to an HSA if you can?
- Do you have a Medical Reimbursement Plan?
- If you own a building, have you considered doing a Cost Segregation Study?
- Have you done a non-deductible IRA contribution and converted it into a Roth IRA?
These are questions you should bring to your CPA to figure out how you can keep more of what you make and build your wealth. The year-end conversation should not just be about how much you have to pay. CPAs like to put together projections for what you owe by January 15th, so if they start heading down that path, stop them and guide the conversation towards your goals. The focus should be on how you can reduce the amount you have to pay.
It’s not about the strategies; it is about opening a dialogue with your CPA so you can take advantage of every possible strategy before the clock runs out. You will be surprised by the amount of money you will save if you start having these conversations with your CPA regularly.
Please visit me at www.theprogressivedentist.com for more informative, money-saving podcast episodes like this one.