HOW CALORIE TRACKING & TAX PLANNING ARE SIMILAR

Did you ever work with a client that was eating healthy foods but not losing weight?

You likely taught them how to track their calories to lose body fat.

Those same principles apply to your business if you are “overweight in taxes”…

If your clients track Calories & Macros to lower body fat…my clients track Profit & Owner’s "Salary" to lower business taxes.

CALORIES = PROFIT:

Imagine the calories that you eat = the profit that your business generates (after your business expenses). Those profits "fuel" both your personal expenses AND Uncle Sam’s tax bill.

Much like food intake...we will want to track and control profit.

MACROS = OWNER’S “SALARY”:

While trying to lose body fat and minimize muscle loss, we find the amount of protein, fat & carbs needed for our body. That is the same for you as the owner of your business. You need a certain salary or draw so that you and your family has enough money for your personal bills (protein), personal savings (carbs) & discretionary fun spending (fat). So we need to determine what that number is....we can always cut the fat if needed!

HOW THIS BENEFITS YOUR BUSINESS:

When you know Personal expenses to live a healthy life (macros) and you track your business profits (calories)...you have the framework to attack the goal of lowering your tax bill.

One of the most powerful tools to lower Tax Bill is by adding a retirement account. Those can take many forms but the popular ones are:

• SEP IRA

• SIMPLE IRA

• 401K

Depending on the type of plan that is best for your business...you could reduce your taxable profits by thousands of $$$ each year!

However, these tools are under-utilized because they seem complicated to setup. Luckily, they can be very easy to start!

While looking at your 2020 budgets & goals...if you would like to discuss the benefits for your Coaching Business, please feel free to email me and I would be happy to help you.

Best

Pat

(Disclaimer: This is meant to be educational, and not advice for your specific situation. Please speak to a qualified Financial Professional about your specific situation before making any changes to your retirement planning strategies.)