Date: June 17, 2022
How to Beat the Sneaky Hidden Tax
That sneaky hidden tax, commonly known as inflation, is still hitting us hard, and everyone feels the effects. With gas, food, housing, and utilities still on the rise, it’s hard not to cringe at the hit on your bank accounts. Many small business owners anticipate an increase in their prices just to stay afloat. What can you do as a business owner to combat inflation?
• Gas prices – this is a big concern for everyone right now! Why not receive a percentage back of what you spend? Getting a credit card that offers cash back rewards will help put money back in your pocket. You could get a gas station credit card, especially if you have company vehicles- just make sure to review the program and find the best fit for you and your business. Another great option is to pay for a club membership – such as Costco, Sam’s club, etc. – as they offer their members discounted gas prices and as a plus, it can save on your grocery shopping as well. What you’ll save is well worth the membership fee in the long run.
• Invest in stocks – specifically in companies that can increase their prices naturally during times of inflation – (think of staples like oil, beef, and natural gas.) The demand for these items means that even when prices go up, people still buy the same amount as they are necessities.
• Invest in your business – so that you can grow and increase your profits. This will help you prepare for the future. One of the best ways to do so is by having a virtual CFO. They will ease feelings of being overwhelmed with the financial side of running your business, especially in times of inflation where the stress is felt on a greater level. They will help you answer important questions like if you are pricing your services correctly, how profitable you are, and what steps to take to grow your business. It will take the guesswork out of these questions, and you will have a competent professional on your side to help. It’s a win-win!
• Have a tax plan in place. What does that mean? Essentially, your current financial position is analyzed by a professional and then a customized plan is put in place to help reduce or eliminate your tax bill. It helps you put money back into your pocket legally, instead of overpaying in taxes. It’s a proactive solution that will help you invest in your business and future.
Inflation puts added pressure and stress on everyone. There are always solutions however, sometimes it just involves creative thinking. One thing to remember is that it is always to your benefit to plan ahead, especially when it comes to your business finances. Make sure you have a tax plan in place to proactively save money throughout the year. If you don’t have one in place and would like to speak with someone, we are here to help you. Click here to speak with one of our Tax Strategists for a free assessment.