Prioritize savings over tax write-offs
- English (United States)
My friend’s tax accountant says、 “I love to think about tax reduction schemes.” I was not interested in tax savings so I thought that I couldn’t call myself a “tax accountant”.
Taxes savings usually means purchase of goods and services to reduce profits. Investment is essential to grow any entrepreneurs’ dreams. Entrepreneurs will have to pay necessary expenses to recruit talent, market and advertise, and develop their business. Cash is a required lifeline for all new businesses. To buy unnecessary items for the purpose of tax savings will eventually weaken a company’s basic financial strength.
This is one reason why you should not focus solely on tax savings. It’s better to maintain accurate financial statements. Financial statements for entrepreneurs are like airplane instruments for pilots. Pilots must rely on their instruments just like business executives must rely on their financial statements to successfully navigate their business journey.
“Are adequate profits coming in?”
“Are sales increasing?”
“Are their any wasteful expenses?”
Unnecessary expenses due to tax reasons will all be reflected in the financial statements. However, you will not know if you are profitable if you intentionally seek tax savings instead of trying to cut down on unnecessary expenses.
You won’t be able to use financial statements because of tax savings since it will become a number that cannot be judged. As a result the financial statement cannot fulfill its original function. Just like a plane cannot reach the destination properly with crazy instruments.
A “tax accountant” should represent you at the tax office and submit your income declaration without any mistakes, not to provide substitutions on various taxes. Our added value is not to create “tax savings” but to consult entrepreneurs on how to realize their profit potential and pay the appropriate legal taxes to make dreams come true.
Think about how to make your dreams come true.
Work hard to make your dreams a reality.
Pay appropriate taxes and return it to society.
I think this is the sustainable way to manage a new entrepreneur’s tax.