It is offi­cial­ly everyone’s favorite sea­son of the year. No, I am not refer­ring to one of the tra­di­tion­al four sea­sons; I am, of course, refer­ring to tax sea­son. It seems that every time tax sea­son comes around, peo­ple tend to go into a fren­zy. A slew of ques­tions always arrive at this time. “How much will I owe?” “If I do this, then that will low­er my tax lia­bil­i­ty, right?” “What else can I do so that I don’t have to pay more in taxes?”

While these are all fair ques­tions, there is more to a healthy finan­cial bal­ance than min­i­miz­ing your tax lia­bil­i­ty. For instance, hav­ing a low­er net income/profit for the year may be help­ful at low­er­ing your tax lia­bil­i­ty, how­ev­er, if you need­ed financ­ing from a bank, the bank would be more open to lend­ing to a com­pa­ny with stronger his­tor­i­cal per­for­mances. Or, there could be a sit­u­a­tion where you have a line of cred­it with a bank and you need to fig­ure out where to best spend your mon­ey. The accoun­tant could sug­gest that you pay off some of the debt in your busi­ness, but a con­sul­tant could sug­gest you invest in more peo­ple and equip­ment for that next stage of growth.

The point here is that every mem­ber of your finan­cial team can have a dif­fer­ent per­spec­tive on what he/she believes is best for you and your busi­ness. That is because, in most cas­es, each of these team mem­bers is focused on one aspect of your finan­cial life and there­fore makes deci­sions that only ben­e­fit that area of exper­tise. To ensure that you have a healthy finan­cial bal­ance, it is best to have each mem­ber of your finan­cial team focused on the “big pic­ture” of your pros­per­ous life. If each mem­ber is aware of the goals for your busi­ness and your­self as an indi­vid­ual, then each deci­sion made will be con­scious of achiev­ing those goals.

Instead of sole­ly focus­ing on min­i­miz­ing your tax lia­bil­i­ty this tax sea­son, no mat­ter how tempt­ing, be sure that each deci­sion helps lead to your self-defined pros­per­ous life.