I was just handed the largest income tax bill of my career and I could not be happier about it.
What I owe in taxes is my companies greatest KPI (Key Performance Indicator). The number tells me that my business was profitable. Simply put, I made more money than I spent. I used my assets efficiently and my expense management was in check. I also paid myself an above market-based wage, took a dividend and best of all, I have the moola in the bank to pay the tax bill.
Believe me, I didn’t always feel this way around tax time. There were plenty of years in my family business when I did not owe taxes because – well, my business spent more money than it made. It wasn’t profitable. I had bought into the notion that profit was an afterthought, an event. I believed that “spending” my way out of paying taxes was a solid strategy.
In the years when I did have to pay into taxes, I didn’t have it. The money had disappeared into the operations of the business. Seeing the number on the financial statements meant little as I promised myself month-after-month that I would “pay it back”. I never could. I was caught in the survival trap.
Since I have been running Profit First in my business, I have a system that determines my prices based on profitability, keeps my expenses on par with my growth and helps me celebrate at tax time instead of being a nervous wreck!
So, this year I am celebrating the month of April not only because it is my birth month but because I get to pay a poop-ton* of taxes at the end of it. I am grateful that my business helped guide others to prosperity while being prosperous itself. I am thankful to be able to give back to my country and to others in need by paying my taxes. Business can be a force for good and make money at the same time even during a pandemic.
I’m also celebrating April by launching Profit in Practice, a course that I developed to help business owners that are:
- ready to find their financial why,
- done with not paying themselves, and
- tired of being caught off guard (again!) by tax season
If that sounds like you, please join me and other like-minded entrepreneurs that are ready to make their businesses work for them instead of the other way around. Doors are now open to register for Profit in Practice — class starts April 20th. Check out the link for more details.
Yours in good financial health,