One thing we can absolutely guarantee you will do every single year is file your tax return. Filing our taxes can be a stressful time, especially if we feel unprepared and like we’re basically trying to figure everything out on our own.
For a number of years after I finished college I filed my taxes by myself using software. Then, after I was married, my husband and I attended free seminars hosted by the Screen Actors Guild. We would arrive with a completed informational packet, so the guest expert could walk the audience step by step through the completion of our individual tax returns.
I barely understood what I was doing – just transferring numbers from my W-2s and 1099s as instructed by the guide. I didn’t know anything about what records I should be keeping throughout the year – so I likely missed out on thousands of dollars of allowable itemized deductions.
It was quite a few years before I was first asked to consider the question: “Who is on your financial team?” I’d never thought about having, building or maintaining a financial team. But of course it made sense. Yes we need to educate ourselves – and continue to strengthen and nurture our relationship with our finances. We must be the leaders – the captains of our teams. But, how powerful to also build a coalition of experts in different financial areas, who can provide the necessary guidance and accountability that will foster our continued growth.
My first and most cherished genuine team member was a CPA. We worked together for more than 12 years; and his support over that time frame was a critical factor in my financial and entrepreneurial development.
What if you committed to choosing (or fine tuning) the professional(s) who will be on your money team as you move forward?
Here are a few thoughts to keep in mind:
1) Building your financial team does NOT have to mean spending more money! When you’re starting out, know that there are free and extremely low cost resources that can be incredibly valuable team members. During the many years when I was using software and group seminars to prepare my tax returns, I wish that I had known about websites like THIS ONE and books like THIS ONE– with detailed but clear and understandable responses to frequently asked tax questions. Just because we are not yet ready to pay for guidance, does not mean we should not arm ourselves with as much information as possible, to be able to take advantage of all potential tax deductions.
2) Seek referrals from friends, family members and colleagues, but then meet with candidates to be sure you find the right fit in terms of personality, preparedness (understands your industry), and price. The person who ultimately became my CPA, willingly spent time with me learning about my goals and challenges. He spoke not just about my tax return, but about tax strategy, and how I needed to structure myself throughout the year to take maximum advantage of the tax laws. He encouraged me to overcome my fear of financial management software and was patient with my mistakes while I learned how to use it correctly. He held me accountable to maintaining my records and to my spending and earning targets. Anyone who makes you feel small or incapable is NOT someone who should be on your team! Trust your instincts and don’t be afraid to ask questions… Here are some to get you started.
3) Ultimately, your “financial team” may include a number of different folks: tax experts, bookkeepers, investment advisors, attorneys, estate planners, debt advocates, insurance professionals, money coaches and/or therapists. With the constant changes to tax law; and since all of us need to file our taxes every year – a tax professional can be a great place to start. As you continue to actively engage in your financial relationship, you’ll have a strong sense as to when/if it is time to consider adding additional professionals; and you’ll naturally begin to define your own guidelines for each of these relationships.
Here at Abundance Bound, we’re honored that you’ve chosen to make us part of your money team. As we continue on our journey, let’s all heed this quote by director, Sarah Gavron:
“Surround yourself with people that support you. Find Champions.”
