Why Reading Your Tax Return (& Not Just Signing It) Is Crucial For Small Business Owners
We need to talk about something that's driving me crazy.
You know that tax return you signed last year? The one you typed numbers into Turbo Tax for and clicked “send”? Or the one your accountant sent over that you barely glanced at before signing? The one with YOUR social security number on it that YOU are legally responsible for?
Yeah, that one.
As a CPA, I've reviewed hundreds of tax returns, and I'm going to be really honest with you - signing a tax return you don't understand is like giving someone your credit card and hoping they don't max it out.
The Importance Of Reading Your Tax Return
By signing your tax return, you are agreeing that everything reported is accurate. The IRS doesn't care if your accountant made a mistake. They don't care if you "didn't know" about that extra income. And they definitely don't care if you missed out on thousands in deductions and credits because you didn't know what to tell your tax preparer about.
You're the one on the hook. Period.
But here's what really gets me - it's not just about avoiding IRS trouble. Your tax return is basically your personal financial story, and not understanding it is costing you MONEY.
Let me give you a real example. Last month, a client came to me frustrated because she got denied for a mortgage. Why? Because when the lender asked for her income, she gave them her bank deposits ($250k). But her tax return? It showed $75k. Guess which number the mortgage company cared about?
Another client had been missing out on thousands in credits every year because she didn't know she qualified for them. Her tax preparer never asked, and she didn't know to bring it up.
These aren't rare situations. I see this stuff EVERY. TIME. I take on a new client and review their return.
Avoid IRS Trouble By Simply Reading Your Tax Return
Ever gotten a 1099-NEC from a client and wondered where exactly it should show up on your return? Missing income is one of the fastest ways to get an IRS notice, and trust me - you want to catch these errors before they catch you.
Or let's talk business expenses. I had a client who was terrified of taking a home office deduction because she heard it was a "red flag". Meanwhile, she was working from her dedicated home office 40+ hours a week and missing out on thousands in legitimate deductions. The truth about home office deductions? The IRS has specific criteria, and if you meet them, you should take the deduction. In the course (explained below), I'll show you exactly which worksheet walks you through this.
And don't even get me started on retirement accounts. Do you know that your contributions are being deducted properly? Or that you’re even allowed to contribute the type of account you are (because there are income limits on some of them!)
The Solution: A Simple Tool To Guide You Through It
The good news? You don't need a degree in accounting to understand your tax return. You just need to know what to look for and where to find it.
That's exactly why I created “The Numbers That Matter: A Business Owner's Guide to Understanding Your Tax Return”
This isn't some boring accounting course that's going to put you to sleep. I break down exactly what you need to know in simple, clear language. No fluff, no unnecessary jargon - just the stuff that matters for your business.
Inside the course, you'll get:
8 comprehensive modules with step-by-step video walkthroughs
Real examples of where things commonly go wrong
Exactly what questions to ask your tax preparer
Feedback on when you might need to bring in an expert for complicated areas
My personal workpapers template to organize everything
Tips on what the IRS actually looks for (from someone who knows!)
Your Next Steps
Look, you're smart with your money everywhere else in your business. You track your expenses, you know your profit margins, you make informed decisions. Why should your tax return be any different?
Ready to finally understand what you're signing? Get instant access to the course here.
The best part? You can go through this entire course in a single afternoon. One afternoon to potentially save thousands in taxes, avoid IRS headaches, and make better business decisions.
Sounds like a no-brainer to me. 💸
The Numbers That Matter
Ever stared at your tax return feeling totally lost? Like you're just nodding along and hoping for the best? Let's fix that!
More Tax Resources For Small Business Owners:
Estimated Tax Payments For Small Business: How To Calculate Your Quarterly Payments
Year-End Tax Planning: The Ultimate Checklist For Badass Small Business Owners
Need More Help?
If you want personalized guidance on setting up your business finances, apply to work with me here. Let's make sure your business starts off on the right financial foot!
Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional.
*Some of the links in this post may contain affiliate links that will provide compensation.
Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.
