Is Tax Debt Killing Your Energy & Focus?

Many business owners don’t have the processes or team to help them plan ahead for quarterly or annual tax costs.

This results in business leaders being caught off guard without an allocated tax budget and unable to pay the amount owed.

Hidden Tax Debt

Frank*, a Better Financial Control client and owner of a 10-person consulting firm, suffered precisely this issue prior to working with us. His business went through a period of increased growth but he failed to account for the additional tax obligations that came with the elevated revenue and profits. The result was that this looming debt left him feeling frustrated and overwhelmed. Over time, Frank began losing his motivation and could not envisage a future without the pressure of tax debt.

After Frank was referred to us we began by analysing the problem at hand, thoroughly discussing Frank’s concerns and financial position. This allowed us to identify several financial management solutions and assure Frank that a positive resolution was at hand. Frank later admitted that that conversation alone was enough to help him break free from the weight firmly pressing on his shoulders.

This is important to remember if you are feeling overwhelmed: just the act of talking through your situation with someone beyond your colleagues can often be beneficial. Even if the other party doesn’t give you any strategies of their own, it can be enough for you to find clarity, so be sure to talk with someone!

Tax Debt Solutions

After our initial conversation, we worked with Frank on a brief monetary gap analysis to see what was missing from his current business management team, and implement processes to allow him to move towards financial resolution. We soon found that he hadn’t ever learned about the need for a cashflow forecast.

Our second objective was to begin determining a growth projection, not only to identify cash flow and budgets, but also to estimate future tax bills.

We then helped Frank negotiate a very conservative tax repayment plan so he could feel that the problem was under control, and that the solution still allowed him peace of mind, alleviating the weight of tax debt on both his business and personal life.

As soon as this plan was put in place it alleviated the stress Frank was holding around his tax issues. He regained his energy and drive which resulted in his company growing once again. But this time we ensured it was managed so that he could monitor the increasing finances and subsequent tax obligations as the revenues grew. This increased the transparency and structure of cash flow, assuring him that when the next bill arrived he would be in a far better position to manage and repay it.

Planning For Your Future Tax Debt

If you are feeling stressed about your tax debt, it likely means you don’t have a reliable plan or strategy. Most importantly, don’t despair; I truly believe the universe will never give you a challenge you can’t handle. There are many ways to get yourself back on track and even stronger than before. The only thing you can’t afford to do is do nothing and hope the issue goes away. Take the first steps towards action today, finding both the emotional support you need as well as the business knowledge required to develop an effective plan.