The 3 Questions EVERY Solopreneur Asks During Tax Season (And the One Question They SHOULD Be Asking)

The 3 Questions EVERY Solopreneur Asks During Tax Season (And the One Question They SHOULD Be Asking)

Tax season is upon us once again, and let’s face it, it can be a bit of a headache. Between running our businesses and trying to stay on top of all the paperwork, it’s easy to feel overwhelmed.

And tax season brings with it a bazillion important questions, but are we really asking the right ones?

Understandably, we tend to focus on questions like…

  1. “How can I maximize my deductions?” This one’s a no-brainer, right? We’re all looking for ways to minimize our tax bill and keep more money in our pockets.
  2. “What documentation do I need to file my taxes?” Ah, the age-old question of paperwork. It seems like every year we’re scrambling to gather receipts and invoices, hoping we haven’t missed anything important.
  3. “Am I saving enough for taxes throughout the year?” Cash flow can be a real headache for entrepreneurs, especially when it comes to setting aside money for taxes. Are we budgeting enough to cover our tax obligations, or are we in for a rude awakening come tax time?

But here’s the thing – while these questions are important, there’s one question I think we’re overlooking. And it could be the key to not only surviving tax season but thriving in the year ahead.

How can I use my financial data from the last year to plan for a more profitable and tax-efficient year ahead?”

It’s time to shift our mindset from reactive to proactive. Instead of focusing solely on getting through tax season, let’s start thinking about how we can use our financial data to make smarter decisions and set ourselves up for success in the long run.

So, how can we put this into action? Here are a few tips to get started:

  • Look for trends in your financial metrics: Are there any patterns or fluctuations in your revenue, expenses, or profit margins? Maybe you notice a seasonal uptick in sales during certain months or a steady increase in expenses over time. By identifying these trends, you can better understand your business’s financial health and make informed decisions.
  • Set goals based on what you’ve learned: Once you’ve identified trends in your financial data, it’s time to set some goals. Maybe you want to increase revenue by a certain percentage or decrease expenses in a specific area. Whatever it is, make sure your goals are realistic, measurable, and aligned with your overall business objectives.
  • Utilize tools like the Profit by Numbers™ Workshop: This workshop is designed to help entrepreneurs use their sales funnel metrics to set goals and track their progress. By leveraging the insights provided by the workshop, you can gain a deeper understanding of your sales process and identify opportunities for improvement.

Alright, my friend. Let’s challenge ourselves to think beyond the usual tax season checklist. By asking the right questions, analyzing our financial data, and setting strategic goals with tools like the Profit by Numbers™ Workshop, we can set ourselves up for success not only this tax season but for many more to come. Here’s to making smart decisions, maximizing our deductions, and taking control of our financial futures!

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About Aby

Aby Blum Sudds (she/her) is a Business Systems Coach, Online Business Manager, and self-proclaimed analytics nerd. She designs time-saving business operation systems for visionary entrepreneurs who need their businesses to work around all the #lifestuff, instead of getting derailed by it. 

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