Small Business Tax Saving Strategies, with Craig Cody

Episode 23:

Small business tax saving strategies? Expert Craig Cody gives an overview of the many ways your agency can save money on taxes going forward.

In this special episode, you’ll hear audio from the Build A Better Agency podcast, where Craig Cody is interviewed by host Drew McLellan from the Agency Management Institute. Hear insights about:

  • How the onset of the global pandemic brought many changes to tax code including the PPP loan, EIDL and other small business tax saving strategies
  • What key considerations to keep in mind about the interaction between the Employee Retention Credit and the Paycheck Protection Program loan
  • Why expenses related to the global pandemic may be able to be deducted, and what qualifications to be aware of
  • What the “Augusta Rule” is, and how business and agency owners can take advantage of the rule to move funds from their business to themselves with no tax liability
  • Why a home office is the first step toward significant tax deductions, such as putting in a pool or a home gym
  • Why it is important to check in with your tax strategist throughout the year, and why strong communication and proactivity are crucial
  • What a Defined Benefit Program is, how it can benefit agency and business owners over the long term, and how it can be the ideal companion to your business exit strategies
  • Why too few business owners take advantage of the Qualified Business Income Deduction, and what to ask when evaluating a potential new tax advisor

Small Business Tax Saving Strategies

This week’s episode of the Progressive Agency podcast is a bit different. In it, you’ll hear audio from a conversation I had with Drew McLellan on his Build A Better Agency podcast. Drew’s focus and passion are directed toward helping agency owners of all kinds grow, strengthen and scale their businesses.

During our conversation, I was able to give Drew’s audience a high-level overview of the many potential credits, deductions and other small business tax saving strategies that many business owners don’t even realize are available to them.

The saying goes, “you don’t know what you don’t know”, and so this week’s podcast episode will hopefully open your eyes to money that you’re leaving on the table for the IRS unnecessarily. My goal is to dispel some of the myths around small business taxes, help you keep more of what you make, and ensure that your agency is on sound financial footing and that you’re fully prepared for your eventual retirement.

Employee Retention Credit 2021

PPP, EIDL, ERC and the Augusta Rule

There are so many ways that you can reduce your tax liability and credits that you can apply for that it can sometimes feel overwhelming. However, a great tax professional can help you make sense of things and can often help you find money you’re leaving on the table.

Ask yourself, is your current tax pro actively seeking deductions? Are you checking in with them regularly, throughout the year, to strategize about ways you can be saving money? If not, you’re almost definitely missing out on deductions, credits and other smart financial solutions.

That’s because, to make the most of PPP, EIDL, ERC, the Augusta Rule and other opportunities, you have to be proactive. Once you wait until it’s time to file, it’s probably too late. That’s why you should be talking to your tax professional regularly, giving them a very clear overview of your business and what has changed since you last spoke, so that they can be looking for these solutions. As Drew mentioned in our conversation, he’s very good at what he does, but he’s not a tax specialist. So, having a trusted advisor in his corner can make a big difference in the amount of his money he gets to keep.

I know you’ll find my conversation with Drew helpful. This is a great opportunity to get up to speed on some of the options available to you, and I urge you to speak to your tax advisor and ensure that you’re taking advantage of every available opportunity.

Additional Resources:

About Drew McLellan:

For 30+ years, Drew McLellan has been in the advertising industry. He started his career at Y&R, worked in boutique-sized agencies and then started his own (which he still owns and runs) agency in 1995. Additionally, Drew owns and leads the Agency Management Institute, which advises hundreds of small to mid-sized agencies on how to grow their agency and its profitability through agency owner peer groups, consulting, coaching, workshops and more.

About Craig Cody:

Craig Cody is a Certified Public Accountant, Certified Tax Coach™, business owner, and the host of The Progressive Dentist Podcast and The Progressive Agency Owner Podcast. Prior to his current work, Craig spent seventeen years with the NYPD, where he retired as a Lieutenant in September 2000. Craig is an expert in helping his clients legally reduce their tax liabilities and keep more of their money. Through his podcast, Craig helps dentists grow their practices through smart financial decisions and through financial education of the kind that isn’t offered in dental school.