Tax Tips for Entrepreneurs | Culture Meets Money with Atiya Brown

• Atiya Brown, Founder and CEO of The Savvy Accountant, which helps small businesses solve complex tax issues and save money on their taxes.
• Atiya Brown joins the Culture Meets Money series to share her best tax tips that every successful entrepreneur should know. 
• Culture Meets Money features many financial educators, financial influencers, and experts in their finance-related fields.

Atiya Brown is the Founder and CEO of The Savvy Accountant, which helps small businesses solve complex tax issues and save money on their taxes. Atiya has many certifications that solidify her financial knowledge. Her credentials include Chartered Accountant, Certified Public Accountant, and Certified Financial Education Instructor. She uses those skills to help empower small businesses to thrive financially. 

Atiya is on a mission to teach her community how to build wealth by understanding the tax code. She joins Culture Meets Money to share her best tax tips that every successful entrepreneur should know. Below you will find some of the beneficial information that Atiya shared about taxes. 

Advice for New Entrepreneurs 

“82% of business owners fail within the first five years because their cash flow is not managed properly, they don’t understand what the ins and outs of their business are, so while they are good at their thing and they ignore the finance side, that can actually be the detriment to their business.” 

- Culture Meets Money, Atiya Brown, CPA
 

One of the main reasons entrepreneurs decide to start a business is because they are great at what they do. However, if organizing your business's finances isn’t your strong suit, then a system must be in place to keep your business on track and in good standing in the eyes of the federal government. 

Often new entrepreneurs focus on every part of their business, like their products, employees, revenue, and the list continues. However, if an entrepreneur feels bogged down with their business finances, finding a clean-cut method that works for you and your business is a must. Some business owners opt to take the DIY (Do It Yourself) approach, while others would hire someone to manage their finances. Nonetheless, you need to find the best method for you.

Recommended Read: How to Save for Retirement When You're Self-Employed

Commingling Funds
 

“When it comes to taxes, getting organized is going to be one of your saving graces. I know that organization is difficult for a lot of people, but when it comes to taxes, one of the main reasons you overpay on your taxes is because you are not organized.” 

- Culture Meets Money, Atiya Brown, CPA

Many new entrepreneurs often run into the risk of commingling their funds. This means that a business owner is mixing their personal and business funds. Therefore, business owners must be diligent in separating and tracking their income and expenses. 

If business owners commingle their funds, they risk losing their corporation's liability protection, known as “piercing the corporate veil.” The legal phrase “pierce the corporate veil” is often referred to when a corporation loses the limited liability that having a corporation provides them. If this happens to a business owner, then, unfortunately, the owner’s personal assets can be used to pay off business debts and liabilities.

Recommended Read: How Your Business Can Monetize Social Media
 

Work With a Trusted Financial Professional
 

“You are responsible for what goes on your tax returns and what’s being reported. 

Don’t be afraid to interview them the same way that they should be interviewing you to see if you guys are the right fit for each other.” 

- Culture Meets Money, Atiya Brown, CPA
 

Working with a trusted financial professional like a Certified Public Accountant (CPA) can provide you with valuable insight into the financials of your business. There are many reasons why someone would want to work with a CPA, such as tax filing, planning, bookkeeping, and forensic accounting.
 

A trusted professional can help you keep your finances in good standing as you continue to grow your business. There are certain times in your business when you should hire a trusted financial professional. Those times include starting your business, tax time, special circumstances (like applying for a small business loan), and acquiring, merging, selling, or closing your business. 

Small business owners can have a hard time delegating. But leaning on a trusted professional can help avoid costly mistakes. In addition, financial professionals like CPAs can streamline the process of managing your taxes while reducing the workload of handling your finances.

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