A Modern Tax Management Philosophy
Our philosophy to managing taxes over a lifetime is simple, only pay tax on what you consume, and ensure tax opportunities are never missed by growing with change, instead of resisting it.
Our philosophy to managing taxes over a lifetime is simple, only pay tax on what you consume, and ensure tax opportunities are never missed by growing with change, instead of resisting it.
As business owners, it can be easy to get caught up in the nuances of cash flow. If you're running a business today it's likely that you're paying unnecessary taxes on income you just don't need to live your life, or support your lifestyle. We focus on showing clients how to only pay tax on money used for consumption, and sheltering the rest of their income.
For most tax planning & accounting firms, tax law changes are a nightmare to deal with. We embrace those changes, because we've embraced technology and it's ability to find information, verify it's accuracy, and implement savings strategies better than humans. This allows us to focus our people on implementing and navigating changes quickly, and accurately.
Our concept of diverse and agile business designs follows the same principles that have helped investors grow their wealth and minimize taxation for over 50 years, The "Retirement Buckets". Instead of taxable, tax-deferred, and tax-free buckets we do this with businesses to create masterfully crafted entity designs focused on permanent tax reductions over a lifetime.
Accountants, CPAs, and Tax Planners are busy people, especially at certain times of the year. When it comes time to do planning it's typically too late to act upon it. We teach our clients to focus the last quarter on tax planning, and activate technology to continually scan over 50 areas of opportunity so when your life changes, your tax plan will too.
Exponential Equations Tax Management Philosophy
Here at Exponential Equations – we’re business owners just like you. Our business is focused on helping other businesses get focused and aligned with a strategic approach to long-term personal and business wealth. We don’t shy away from the conversation of substantial wealth because the conversation is about more than the individual, it’s about the people that helped us get there, and our on-going legacy.
We’re passionate about helping business owners illuminate what’s holding them back from their potential, and helping guide them to achieving the financial greatness they were always capable of. There’s a lot of nuances to running a business, a lot of opportunities that can be missed, many pitfalls to unexpectedly present themselves, and a lot of hurdles to overcome. We empower business owners to be the best versions of themselves for their team, their family, and their lives by taking the frustrating issue of tax planning off their radar.
Our philsophy is a great fit for businesses, and business owners who have a business revenues over $1 million dollars, or $300,000 of taxable income. It’s also a great fit for anyone who is looking for a holistic, one-stop approach to keeping their tax planning and business growth goals on track. The more complex, or complicated entity/business design – the better. Our team-based approach hyper-focuses on dealing with some of the most complex financial and tax situations we can find.
If anyone gets pulled in a hundred different directions on a daily basis, it’s the small business owner. Most often when a successful business is built, it wasn’t by accident and the people who built it are responsible for more things than just themselves.
Soon, other people’s livelihoods become dependent upon the business owner. All while growing obligations, time needed for family, and unexpected life events are pulling at the seams.
We teach our business owners how to put their oxygen mask on first in their businesses without it coming at the expense of others. It comes down to fundamental components of running the business that can be structured in a way that makes running it simple, effective, and easy.
If you haven’t planned your exit as a business owner, you’re behind the ball. It’s important to begin with the end in mind and fully think through how you’re going to be exiting your business. There are a lot of things to consider and a timeline of at least 5 years should be used for proper exit planning. Depending upon the type of business it could be more or less, and include additional opportunities to accelerate value, or work alongside tax & accounting professionals to ensure your business has the best curb appeal.
The valuation, and sale proceeds are just a part of the equation. There are many tax implications associated with business sales, and with proper planning – many adverse impacts of unplanned business sales can be avoided easily and inexpensively.
One of the most interesting conversations we have with business owners is around what their “taxable income” is. Most often it’s misunderstood in various ways from K1’s to Distributions to Wages and all sorts of permutations. We teach our business owners that there’s only two types of cash flows, ones you pay tax on and ones you don’t. Our strategies focus on helping business owners understand that they should only pay tax on the money their using to fund their lifestyles and use the rest to build wealth in a tax advantaged way.
Most business owners think their accounting strategy is maximized, only to meet us and realize that they were playing such a small game and missing out on so much.
There’s much more to the equation than you might think, and the reason we get up everyday is to help business owners truly benefit from what they’re building.
We emphasize this with our business owners because it’s easy to get things wrong. What we’ve learned doesn’t work in business financial consulting is where our value lies. Preparation is a big part of the struggle with running, managing, and growing a business. Being consolidated & integrated into a personalized ecosystem backed by technology is what we feel is the most effective way to plan accurately and efficiently.
We do this through several software programs internally, and one externally with our clients. We spend most of our onboarding in this area, and focus on helping the business owner organize and prioritize their goals in measurable and meaningful ways.
Something that rubs us the wrong way in our industry is that when clients owe the IRS money after a tax return is filed, the CPA & Accountant become hard people to get a hold of. Ultimately these problems are human error, and can be avoided with more robust technology & software.
It can be easy to get caught up by life. There are already enough things to deal with in our routines, not to mention the unexpected things that always seem to find a way to come up at the worst possible time. Just know no one is alone in experiencing this, it’s very much a part of what makes us humans.
Understanding this, it’s important to consider what detriment a complacent outlook can have on financial futures. Particularly when the mental automations we create in our minds keep us in the same place while the world is continuing to move on without us.
The more succinct concept here is that, whatever you were doing when you first got started in your business probably isn’t a fit anymore. Your strategy probably isn’t a fit anymore, and it’s likely you’re the one paying for that. It would be nice to have professionals who let us know when we outgrow them but we’ll try not to hold our breath on that one, you shouldn’t either.
This means everything from the gaps in how we think about money and finance, to the gaps in how we activate our teams. Through a lack of focus on these areas, the gaps in knowledge and understanding grow. Over time this can create things like complacency, accidentally switching on brain “auto-pilot”, and other things. Our philosophy is that we need to continually close these gaps to provide mental agility to stay ahead of the power curve.
Lots of things in life come up, there are always good excuses not to do things, and ultimately as business owners and stewards, we’re responsible for everything our organizations do or fail to do. Instead of taking on the responsibility of stewarding all of that, you can leverage technology to do it for you. You could build software that keeps you on track, and updates you in real time of tax changes and opportunities/pitfalls in over 50 different areas, or you can just use ours.