OBLIGATORY NOTE: I'm talking about tax stuff here. Listen to your accountant when making important decisions on your business instead of a random floral shop owner on the internet. That said, here goes:
There's a huge amount of discussion going on right now amongst small business owner florists about the new US tax law. There's definitely some positives for Small Business Owners and certainly some drawbacks. While it's still too early to comment on how the pending new US tax law will impact florists there are a few principles to keep in mind when responding to new tax laws whether you're in the U.S., Australia, Zimbabwe, or anywhere in between.
Don't Get Frustrated
Here's the thing: tax laws will change. Sometimes it will be better for (small) business owners, other times it will be worse for them. It's easy to get frustrated over what's going on (or silently be thankful that the wind is blowing your way) but the laws are agnostic to your emotions. So do what you can do. Vote. Talk to your representatives. Know what it is that you need and make your voice heard. But once the legislature makes the final decision, the best you can do is deal with whatever is decided. The laws are agnostic to you so be agnostic back to them. Be prepared to reply to changes in the tax law with a stalwart attitude and put in the leg work you need to make sure your business succeeds.
Listen To Your Accountant, Not Facebook Rumors
Social media can be VERY dangerous when it comes to new tax laws. Consider what would happen if you read something on a florist forum that made it seem as though you could get bigger tax deductions if you did something when, in reality, doing that thing would actually have you paying out the nose for the mistake. Take time to learn the rules (and, trust me, that takes a LOT of time) or get someone who is a professional to handle things. Our sales team at Curate talks to florists every single day who are the farthest thing from being a numbers person. It's OK to be a creative and focus more on flowers than deductions. Yet, if that's the case for you, you NEED to recognize this, you NEED to know the basics, and you NEED to have a person who can help you interpret changes. This person needs to be educated both about the tax laws and your business so they can communicate with you on that level.
We spend almost $2,000 on our accountant each year (yes, it's a lot of money and the amount is rising because they gave us a great deal up front and have grown with us) even though we could have easily done our own taxes for $50 using a software each year. Sounds like we're wasting a ton of money each year, right? In reality, they've helped us plan and have saved us 15-30K over the past three years that we've used them. No matter what country you're in, you're going to have to deal with laws and taxation. Get an accountant and listen to them!
Have A Gameplan
Your accountant will be a huge help with this! Once you sit down with them and hear how the new tax laws will affect you, figure out what you need to do to make sure your business is successful in the context of the new laws. Figure out which things you may need to cut out of your budget because they're no longer feasible and which things you need to invest more money into for the bigger tax break. Once you have your game plan, stick with it!
New US Tax Law
Next week we'll have a lot more information about what's happening in the new US tax laws since we should see what's coming through congress. We're going to share what we've learned at Twisted Willow Design from our accountant as well as some of the things we're going to be doing in response to the upcoming changes. One of those changes is the value of deductions. In short, if the new US tax law stays as currently is in the legislature and you have a deduction you need, you'll want to do take advantage of it. For a more specific example, if you're considering investing in a tool like Curate, we can talk with you about what we're doing in our shop and see if Curate is right for you, click the button below to learn more!
