$100,000 In Debt With The IRS....

a few days ago i had a conversation with an entrepreneur making fifty thousand dollars per month but he was one hundred thousand dollars in debt with the irs which is huge based on that conversation here's a quick video on what i learned so that you don't make the same mistake as an entrepreneur what's up y'all i'm prince daniel founder of the jumping jack tax franchise first and foremost thank you to all of my subscribers there's about 223 000 of y'all here in this family and i look forward to continuing to feed you with knowledge information around personal finance small business tax and accounting bookkeeping franchise all types of stuff so that you can continue to develop and grow as an entrepreneur and boost your financial literacy so with that being said let's get into it number one he was paying staff and contractors through his personal account that is a big no everybody say no let me tell you why when it came to tax time whomever was filing his taxes did not know that these were legitimate expenses that he paid out to staff and contractors so they recorded these as profits and he ended up paying taxes on profits that were technically considered expenses lesson number one in this please keep good records in of every transaction that you make within your business if you do not you could end up paying taxes on legitimate business expenses that could be categorized as profits and every dollar that you are paying to the irs is money that you could have used to continue to fuel your business lesson number two separate everything immediately everybody say immediately i mean immediately i don't care if you even have 15 to 30 transactions that your business does on a monthly basis make sure it is separate from your personal account even if you set up a secondary personal account that wasn't even an actual business account but it was a secondary personal account solely used just for business transactions that's even better than just keeping everything combined into one the reason why is because in the event that you are ever audited you can prove legitimacy of business transactions it shows that you are organized in the eyes of the irs and more importantly two for you as the business owner it allows you the ability to oversee what's actually happening with the finances of your company so that's really important make sure that you are separating this immediately number three he hired a random person who didn't even know much about his business that is a big no again everybody say no do not hire a tax professional who does not know anything about your industry your business how the cash flows work because they are cheaper because cheaper is ultimately going to cost you in the future lesson number three in this find an accountant and stick to that person do not switch do not move unless they're just doing a a pretty poor job you want to have an accountant that fully understands your business model somebody that you can grow with who knows your cash flows who knows your expenses who even understands your vision around where you want to get with your company so they can help align goals towards that you want somebody that's going to stick with you so when it comes down to tax toward tax time you now have the ability to tax plan you now have the ability to put goals in place to be able to structure things the right way that accountant that's working with you is going to grow and understand it so you have a better and stress-free time during tax time to summarize the more money you earn the more discipline you have to be with your business finances now i hear a lot of entrepreneurs say hey well you know what i don't got to be as disciplined don because i'm not making much money today well if you want to make much money tomorrow you have to be disciplined today with what you have because those habits are now going to cross over to when you are making more money right and you don't want to be caught in a scenario where you were too cheap or you were procrastinating on getting it done the right way that it ends up costing you in penalties interest all types of fines that the irs could end up bringing down to you or things that you're going to have to clean up at a later point of time where you're going to end up paying an accountant thousands of thousands of dollars to be able to fix if you are proactively doing it the right way it's going to solve your problems for tomorrow with that being said i hope this video was valuable and that you learned from these lessons from a previous entrepreneur that you can make a ton of money but you could end up in a lot of debt at the same time with the irs and digging yourself out so take this put these into place immediately and at the basic level you're going to be okay and i look forward to helping you when you contact us at jack books so we can bring you one as a client to help you continue to scale your business to the next level with that said i'm prince dino founder of the jumping jack tax franchise please like comment and subscribe and share this with a fellow entrepreneurial friend who needs these basic tips as well so that their business can be organized and can grow see you in the next video peace

Channel: Prince Donnell

Views: 2,821

Keywords: prince donnell, jumping jack taxes, curlbible, devotion beard, saving money, how to save, how banks work, money in the bank, investments, forex, mutli level marketing, trade, stocks, buy property, real estate, entrepreneurship, business owner, how to start a busniess, business tax, write-offs, how to budget, entrepreneur, business conference, 2023, 2022, 2020, 2024, IRS, owe irs, debt, save money, make money

Id: 9_sabJbho6E

Length: 5min 40sec (340 seconds)

Published: Thu Jul 07 2022