How are small business owners and entrepreneurs like artists? Well, they combine their passion and available supplies (such as laws) to create a masterpiece (products and services that people actually want.) Entrepreneurship is associated with risk because, well, it’s risky to quit your day job with a consistent salary to start a new venture with no guarantees. After literally risking it all, it utterly amazes me that small business owners still turn to the one professional who is the exact opposite of an artist for tax advice. Yep, I’m talking about your CPA. If you show a CPA a Picasso, they’ll likely value the painting at ten bucks (or the cost of materials.) Why? Because they lack the ability to think outside the canvas.
Everyone thinks that the CPA industry does a thing that it isn’t actually trained to do. Financial Gravity, on the other hand, is trying to solve this problem by 1/ figuring out your unique situation and 2/ applying the tax code to your unique situation. Bottom line, we help small business owners and entrepreneurs lower their personal income taxes legally, morally, and ethically by making the same strategies that the ultra-rich use, accessible and available to everyone.
Still not convinced? Ask yourself this question: When is the last time your CPA saved you at least $1000 in taxes? If your answer is “never,” then ask yourself this question. What do you think a CPA actually does?
CPAs aren’t artists, they are historians (number historians to be exact). They take what you’ve already done and record it. They don’t tell you how to do what you’ve done differently. In fact, they aren’t even trained to do proactive tax planning (which is an art in itself.) Being an artist, entrepreneur, or small business owner involves some level of risk, something that CPAs are naturally averse to. CPAs became CPAs because there is no risk involved. They may answer the questions you ask them, but they don’t get to the core of WHY you asked the question in the first place.
So, if the CPA industry can’t help you, who can? What you need is someone who knows how to ask the right questions to get to the right objectives, someone who knows that there are lots of laws located in the tax code to help business owners like you save on taxes, someone who understands the art of business…Financial Gravity.
Take this scenario for example.
I call my CPA and say “I want to put $10,000 into my IRA.” To which my CPA replies, “you can’t do that, sorry.” Financial Gravity, on the other hand, would dig a bit deeper and ask, “Are you married? If your spouse doesn’t work, then you can have your spouse put in $5000 and then you can put in $5000.”
If everything Financial Gravity recommends is legal, moral and ethical, why are CPAs so afraid of being red-flagged by the IRS if they implement the same strategies?
The simple answer is that they are just a risk-averse profession even if that risk is a fallacy. There is nothing risky about applying the laws located in the tax code to reduce your personal income taxes. That’s what they’re for. For example, there are four ways to write off a home office. If it’s a red flag to write off your home office, why are there four legal ways to do it? Bottom line, laws are hard to pass. If there’s a law in the tax code that reduces your personal income taxes, USE IT! Or call Financial Gravity and we’ll help you do just that.