Expert Advice: Ed Guerrero, CPA

You Could Save Thousands on Your Taxes!

By Ed Guerrero, CPA

If you’re ready to get started on your tax strategies, or if you just have questions about our process, please give us a call at (210) 490-7100 or schedule an appointment online at guerrerocpa.com. We’re here to help you every step of the way!

As you probably know, we have two different tax systems. The first is for people who are informed about their taxes and take a proactive approach toward them. The second is for people who are not informed and take a reactive approach. So, what’s the difference between these two approaches? Proactive taxpayers are usually better at managing their finances and keeping up with tax laws. They often have a tax professional help them prepare their return, so they can be sure they’re taking advantage of all the deductions and credits they’re entitled to. Reactive taxpayers, on the other hand, often don’t have a good handle on their finances or don’t keep up with tax law changes. As a result, they may end up paying more in taxes than they need to.

Are you one of the many people who wait until tax season to start thinking about your taxes? If so, you’re not alone. The average taxpayer takes a reactive approach to taxes. They have not learned the proactive piece of it. So part of the proactive is the nine-step process. It’s not the eightstep process but the nine steps. And again, understand that most people who prepare taxes stop at eight steps. Eight steps mean we prepare your taxes. And now, informally, not formally, you go away.

We know that taxes can be confusing and overwhelming. That’s why we have a nine-step process to help you get through it. Once you finish your taxes, we actually have you scheduled for the tax checkup. Tax checkup is where 90% of our clients are, and 10% are in tax surgeries. These are two different products for tax strategies. The tax checkup is a great way to make sure you’re on track with your taxes and to find any areas where you may need help. We’ll go over your return with you and make sure everything is in order. We’ll also look at your financial situation as a whole and see if there are any areas where we can help you save money on your taxes.

Do you know what the number one fear is for taxpayers? The IRS. That’s right, more people are afraid of the IRS than they are of clowns, heights, or even public speaking. And it’s no wonder, because the IRS has a lot of power. They can garnish your wages, seize your property, and even put you in jail. So it’s no surprise that people would rather do nothing about their taxes than risk getting in trouble with the IRS. But here’s the thing: the IRS is not out to get you. Yes, they have a lot of power, but they also have a lot of procedures in place to make sure that people are treated fairly. If you’re honest and cooperative, there’s no need to be afraid of the IRS. So if you’re one of the millions of Americans who have been putting off dealing with your taxes because you’re afraid of the IRS, it’s time to face your fears and take care of business. The sooner you do, the sooner you’ll be able to breathe a sigh of relief.

Many people think that avoiding taxes is the problem. But the truth is, if you do it correctly, there’s nothing wrong with embracing the IRS. We’re in virtual times now, so it’s important to understand how to do this correctly.

It’s already November, which means the end of the year is fast approaching. And that means it’s time to take a look at your business and see where you want to be by the end of the year. Now is the perfect time to analyze your data and see where you’re at for the year. This will give you a good projection of where you should be by December 31st. So take a look at your numbers and see where you can make some improvements. There’s still time to make changes and end the year on a high note. So don’t wait; act now!