When tax season rolls around, it’s easy to feel like taxes are just another burden on your already full plate.


Most of us go about it reactively, rushing at the last minute to gather paperwork, answer questions from our accountants, and hope that we come out the other side without owing more than we expected.


But what if taxes didn’t have to be such a hassle? What if we approached them as part of a larger strategy for financial growth and business success?


As a business owner or executive, you have a unique opportunity to take control of your tax situation by changing the way you think about it. By changing your mindset and adopting smarter habits, you can reduce stress, make better decisions, and even use taxes as a tool to achieve your personal and business goals.


Here’s how to start thinking about taxes differently, along with some practical steps to help you take action.


Think long term


Be proactive, not reactive: Most people only think about taxes when they need to, whether it’s tax season or when they receive a notice from the IRS. However, proactive tax planning can significantly improve both your financial situation and your peace of mind. Thinking ahead and treating tax planning as a year-round responsibility will help you avoid last-minute surprises and stress. More importantly, you’ll discover opportunities to save money and make better financial decisions.


The Growth Mindset: Taxes are not just a bill to pay or an expense to be minimized; they are part of the bigger picture of your overall financial strategy. When you view taxes as an integral part of your personal and business financial puzzle, it changes the way you approach them. Instead of focusing on short-term tax avoidance, think about how taxes fit into your long-term growth plans. Do you make decisions that align with your vision of the future? How can your tax strategy support your goals, whether it’s reinvesting in your business, expanding your operations or growing your personal wealth?


Build better habits


Assess financial situation: Many executives and business owners schedule regular check-ins with their teams to assess business performance or discuss progress on important goals. The same discipline should apply to tax planning. Instead of assessing your tax situation once a year, organize quarterly or semi-annual check-ins to assess where you stand. Are there new discounts you can take advantage of? Have your financial goals shifted? Are you anticipating changes in tax law that could impact your strategy?


Delegate and Stay Involved: If you run a business or manage a business, you probably already work with a team of experts to help you with the financial side of things, including tax advisors, CPAs, and attorneys. Delegating the detailed work to these professionals is a smart move, but that doesn’t mean you should be completely out of line. Stay involved in high-level discussions about your tax strategy and make sure you understand how their recommendations fit into your overall financial goals.


Make taxes less stressful


Taxes and Decision Making: Whether you’re purchasing new equipment, considering expansion, or even making personal investments, it’s important to factor taxes into your decision-making process. Understanding the tax implications of important decisions will help you avoid surprises later. For example, purchasing a new piece of equipment for your business can provide immediate tax benefits through deductions or credits, but it’s also important to consider the long-term financial implications.


Pay wisely: The way you as a business owner or executive receive your compensation can have a major (TP1) impact on your tax liability. From salaries and bonuses to stock options or pension contributions, different forms of compensation have different tax consequences. It’s worth working with a financial planner or CPA to ensure your compensation package is structured in the most tax-efficient way. Small changes here can lead to significant savings over time.


Managing the stress


Calm under pressure: Let’s face it: taxes can be stressful, especially if you feel unprepared or aren’t sure what to expect. But if you let that stress get the better of you, it can lead to poor decision-making or even avoidance. By staying calm and practicing mindfulness during tax season, you’ll be better able to make clear-thinking decisions. This can be as simple as setting reminders to start early, organizing your paperwork throughout the year, and keeping the lines of communication open with your advisors.


Clear Communication: One of the easiest ways to avoid stress around taxes is to make sure everyone involved in your tax planning is on the same page. Whether it is your accountant, financial planner or business partner, clear and open communication ensures that nothing is overlooked. This not only reduces the chance of errors, but also makes tax season a much smoother process for everyone involved.


Personal and business tax needs


Tax Strategies: When you own a business, it’s easy to get caught up in the day-to-day demands of running the business and forget how your business tax strategy impacts your personal finances. Successful managers and entrepreneurs think holistically about their tax planning. Are your business decisions aligned with your personal financial goals? For example, if your goal is to save for retirement or invest in real estate, your business tax strategy should support these goals.


Keep it simple: You don’t have to become a tax law expert, but you do need a strategy. By simplifying your approach by setting up automated payments, working with trusted advisors, and establishing clear routines, you can make tax planning much more manageable. This frees up your time and energy to focus on growing your business and achieving your personal financial goals.


Important questions


Here are a few questions you can ask yourself to change your thinking about taxes:


– “Do I think about taxes as part of my overall financial strategy?”


—“What small steps can I take now to make tax planning easier in the future?”


— “Who can I rely on to help me with the details while staying focused on the big picture?”


Think ahead


Stay informed: Although you don’t have to become a tax expert, having a basic understanding of how taxes affect your business and personal finances can help you make better decisions. Don’t hesitate to ask questions, learn about new tax laws, and stay informed so you can take advantage of the opportunities that arise.


Plan for the future: Taxes play a role in many of the most important decisions you make, whether you’re planning for retirement, thinking about succession, or growing your business. By staying proactive and planning ahead, you can avoid surprises and ensure your tax strategy supports your long-term goals.


By changing your approach to taxes – from mindset to action – you can reduce stress, stay in control and even unlock new growth opportunities. Taxes don’t have to be a headache; With the right strategy, they can be a valuable tool for your personal and business success.


Patti Cotton serves as a thought partner for CEOs and their teams to help manage complexity and change. Reach her out Patti@PattiCotton.com .



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