We’re half-way through the year, and this is the best time to make sure that you and your business are doing the right things to save every possible dollar. As a business owner, one of your many jobs is to maximize the tax code to minimize your tax dollars. And as an individual, you need to make sure every dollar possible goes to your family, your entertainment, your investments and your retirement.
Have a plan. Meet with your tax professional at least twice a year in addition to tax time. When you are pulling documents and working towards filing a return, it’s not a good time to make changes and plans. So set up a time to meet after the return is done, and again before the year is over. Make sure you’ve discussed and checked off all these items:
- What taxes do I need to pay quarterly to avoid penalties?
- Have I maximized my non-taxable retirement contributions?
- Is my accounting system up to date and reconciled?
- If I’m an S-Corp, did I pay my own payroll?
- Am I on track to file all quarterly and year end reports?
- Do I need to/should I purchase capital items this year?
- How am I maintaining proof of all expenses?
- If I am a cash basis taxpayer, should I delay client invoicing? Make contractor payments before the end of the year?
- Have I maximized my healthcare costs for tax purposes?
Finally, mid-year is a good time to take a hard look at your financials and make adjustments. With your accountant, partner(s), business mentor, your spouse, or all of the above, look at your profit-and-loss statement. Compare your results to last year, adjust your marketing efforts and get rid of unnecessary expenditures. Look at your balance sheet to understand where you are: Is your business always ready to sell? Is your borrowing in line with your revenues? Are you compensating yourself enough?
If it sounds overwhelming, it’s because you are the expert in your business, but maybe not in accounting and tax planning. So ask the experts. Make an appointment today with your tax professional and your accountant. Spend an hour with each of them, let them help you plan. Your wallet will thank you.
Article submitted by DeeAnne McClenahan, Enrolled Agent with MCC Tax Experts. Text or call 602.214.4608 or make an appointment here for a free consultation.
Healthcare costs vary based on a number of factors. Median out-of-pocket spending on health care ranged from $360 per year in Hawaii to $1,500 per year in Nebraska, according to a 2019 report from The Commonwealth Fund. While some costs are set, such as the premium price for your health plan, others can be planned or negotiated if you know the right questions to ask. 
Uninsured or underinsured people are charged more for their healthcare and typically pay more out of pocket. That’s because they don’t benefit from the reduced rates negotiated by private health insurance companies and public insurers such as Medicare and Medicaid. Additionally, most uninsured people do not receive discounted or free health services. Kaiser Family Foundation (KFF) found that in 2015, only 27% of uninsured adults reported receiving free or reduced-cost care. 
Allergy shots can be expensive at first because there is often a long-term course of treatment. But, they may reap financial benefits if you find relief later and don’t have the continuing costs of managing your symptoms. Your treatment may require more than one vial, which means you will have more than one injection at each appointment. Build-up injections are usually required on a regular basis for 6 months or longer. You also may need a maintenance dose less often, but those can last for 3 to 5 years. Many insurance plans will cover allergy shots, but you may still have out-of-pocket costs. 
