Let’s talk about something that might seem counterintuitive coming from an accountant: sometimes, focusing too heavily on tax savings can actually hold you back from achieving your bigger life goals.
As business owners, we’re often bombarded with advice about minimising our tax bill. And while tax efficiency is important, it shouldn’t overshadow what you’re really trying to achieve in your life and business.
Let’s break this down with a real-world example:
Imagine you’re a business owner with a dream of buying your perfect family home. You’ve been working hard, growing your business, and you’re finally approaching the profit levels that would help you secure the mortgage you need. Then your accountant suggests putting a large sum into your pension to reduce your tax bill.
Sounds good on paper, right? But here’s the catch:
- While you’d save on tax, you’d also be reducing your declared profit
- Lower profits mean banks will offer you a smaller mortgage
- Suddenly, that dream home might slip out of reach
This is exactly why at Pink Pig Financials, we start with understanding YOUR goals first.
We believe you’re not just building a business – you’re building a future.
Tax efficiency is just one piece of a much bigger puzzle.
Here’s what we consider instead:
- What are your short and long-term life goals?
- How does your business need to perform to support these goals?
- What financial metrics do you need to demonstrate to achieve specific milestones?
- When is tax efficiency helpful, and when might it hinder your progress?
Sometimes, paying a bit more tax in the short term can actually fast-track you toward your bigger goals. It’s about making informed decisions that align with your vision, not just following conventional accounting wisdom.
The Bottom Line:
Your business finances should work FOR your life goals, not against them.
Whether you’re dreaming of a new home, planning to move abroad, or creating more family time, your financial strategy should align with these aspirations.
Ready to align your financial strategy with your life goals?
Complete our quick questionnaire to tell us about you and your business, and book a free 30-minute Discovery Call. During this call, we’ll discuss what isn’t working for you, identify areas where you need support, and even provide some quick wins to take away – whether you decide to work with us or not, no pressure!
Want tax tips and advice? Check out PPF on YouTube
