Beyond Basics: Why Tax Planning Needs to Align with Your Life Goals
As an accountant, I frequently encounter videos and guides that focus on tax planning: basic tax-saving tips: tax bands, rates, dividends, and ways to reduce your overall liability. These topics are undoubtedly important, but they’re the fundamentals—topics your accountant should already be addressing automatically.
While minimising taxes is a common priority, it’s not the only priority. Your financial strategy should reflect your unique life plans and goals.
Imagine this:
- You’re preparing to buy a new home in the next two years.
- You’re considering remortgaging to get a better deal.
- Or perhaps you have a major financial milestone ahead that depends on a strong declared income.
In these scenarios, aggressively lowering your income to save on taxes could hurt your chances of securing a mortgage or meeting your financial objectives. Tax efficiency is important, but it shouldn’t come at the cost of your broader aspirations.
What Your Accountant Should Be Doing
A great accountant doesn’t just calculate numbers—they connect the dots between your financial data and your life goals. This means:
- Proactive Tax and Dividend Planning: The fundamentals should be handled without you needing to ask.
- Understanding Your Goals: Whether it’s buying a home, scaling your business, or planning for retirement, your goals should shape your financial strategy.
- Balancing Tax Efficiency with Financial Needs: Strategic planning means knowing when reducing taxes isn’t the best move for your overall success.
Is Your Accountant Meeting the Standard?
If your accountant isn’t already addressing these considerations, it’s time to have an honest conversation. You deserve an advisor who understands that your financial goals are about more than just saving money—they’re about creating the life you envision.
At the end of the day, tax planning should be a tool, not a hurdle. Ensure your accountant is providing the strategic, goal-focused advice you need to achieve your aspirations.
Frustrated with your current accountant? Book a discovery call here to see how we can help.
See how our Virtual Finance Office can save you time and money here.
