Joshua NelsonSeven Figure Agency · Mentor / Coach at Seven Figure Agency

Smart Tax Strategies for Maximizing Savings and Securing Long-Term Clients!

Name: Smart Tax Strategies for Maximizing Savings and Securing Long-Term Clients!
Uploaded: 2023-12-03T13:11:48+00:00
Duration: 53 s
Channel: Joshua Nelson
Description: In this advisory segment, the presenter outlines two practical cash‑flow and tax‑saving tactics for service‑based businesses. First, he explains that if…

3 Dec 2023 · 1 min

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In this advisory segment, the presenter outlines two practical cash‑flow and tax‑saving tactics for service‑based businesses. First, he explains that if a company anticipates future expenses—such as services or capital purchases—it can prepay those costs in the current tax year. Prepaying reduces taxable income, lowering the tax bill and freeing up cash that would otherwise be tied up in future payments, while also mitigating the risk of mid‑year client churn. Second, he advises proactively informing clients about upcoming price increases and offering to lock in current rates for those who commit early. This price‑lock strategy secures revenue ahead of the increase, improves cash flow, and reduces the likelihood of losing clients due to price‑sensitivity.

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Good tax planning says, look, if we generated X amount in revenue and this was our profitability, if we know we're gonna incur some cost going into the next year, whether that's services, capital expenditures, and you can prepay that in advance, that will reduce your income, thereby meaning you have to pay less taxes. A lot of them are looking for opportunities where they can prepay things. And if you can get a prepay a year in advance, that's a nice chunk of change in the bank. It also kind of takes away any pressure of whether that client's going to churn out or like kind of change directions on you mid-year where you don't get the full payment throughout the course of the year. Number 2, you're gonna reach out and let them know, "Hey, prices are going up in the next year and I'd like to lock you in. So if you're serious, I can honor the price that we've discussed and you're going to save X amount."