Taxes are something that newer chiropractors don’t really understand, only to be shocked when they see how taxes really work. I know I was.
Typical employees don’t understand how taxes work for the employer. Small business owners who generate a profit do understand how significant taxes are. In many cases, taxes are the most significant expense the business owner has. They certainly are for me.
Taxes are the biggest expense we have. Over 40% of the money that’s going out from the business every month is for taxes. This is all by design. A heavy progressive income tax that makes no sense is all part of the plan to try and break people mentally. The goal is to break your “will.” To get people to say “what’s the use.”
There are dark forces in this world. So we bring the LIGHT!
We could discuss how criminal it is, how crazy it is, what a joke it is, and all the history behind taxation, but nothing is going to change it. The system is set up so those who have the guns, money and power make the rest of us pay.
So, we must figure out a way to win.
We must play a game psychologically to reconcile this. We simply realize that we’re in a partnership with the government. We give them part of the money and in exchange we get protection, the ability to earn, the safety and the economics. We get all the things that allow us to have an incredible life here in the United States.
You must get past having a “negative charge” on taxes.
Procedurally, what we do to eliminate this negative feeling is: We have our taxes paid automatically every single week. You heard me right, we make our state and federal tax deposit every single week. Electronic and fully automated out of your business account.
Never at the end of the year, never quarterly, and never monthly at higher levels in practice.
The dollar amounts you’ll be paying for taxes with your success here in WINNERSEDGE become so significant it’s very hard to handle psychologically.
Paying $60,000 quarterly or $20,000 per month is difficult to stomach. Instead, you break it down to $5000 every Thursday automated so you don’t even realize it’s coming out. Then you can keep your mind focused on continued practice growth and lifestyle.
Some chiropractors will say that their accountant can’t do this. Of course they can.
We never want to bend our needs to what an accountant can or can’t do.
We have an accountant who can set us up to have our state and federal tax deposit automatically electronically withdrawn at a fixed amount every single week. The accountant reviews and adjusts the amounts a couple times during the year to make sure at the end of the year we don’t owe.
I start paying federal tax at the beginning of the year and halfway through the year the accountant sees what my income is compared to what I’ve paid for tax and makes any adjustments.
Then, around August, looks again and makes any adjustments so I have several months to make sure I’m current before the end of the year. You NEVER want an accountant to drop a bomb on you and say you owe a large amount!
If you get behind on taxes it will ruin two years of your life. It will take every bit of this to get back on track. I have videos on how to handle this.
Remember, if you’re not paying enough in tax AND you owe past tax you will need to increase how much you’re paying in current taxes leaving you no money to pay the past tax owed.
For example: Let’s say you’ve been paying $1000 a week in federal tax and the accountant says: “Whoa you had a good year last year, you owe $38,000 in taxes, and by the way, we need to increase your taxes to $2000 a week.” Where do you get the money to pay the $38,000 tax bill? You now have to pay another $1000 a week to get back on track, so where do you get the money to pay the bill?
Very few chiropractors have their taxes in order. This is one reason why every DC should be a member here. What we teach is required for business and life success.
We actually feel sorry for any chiropractor that’s not in the group. They have no idea how much better their life could be.