How to lower your taxable liability in 2021: Pay your marketing bill now!
Investing in your business growth for next year starts today! Here’s how to make the math work in your favor.
A major theme throughout 2020 underscored by the global health crisis was that most of us were reacting to everything happening around us. And how could you not?
When the dominoes were triggered and business models were completely shattered, it was difficult to plan months ahead let alone even a week!
It was a natural reflex that all business owners felt.
As we collectively catch our breath at the end of the year, reflecting on what’s in our rear-view, digesting all of this intel and looking ahead, it’s time we all flip the script from being reactive to being proactive!
Investing in your business’s growth for the next year starts today!
To make it a banner year, businesses should be focusing on how to become more profitable. When you widen the lens and put profitability in the cross hairs, assessing your marketing plan comes front and center to make it an effective and smooth-running operation.
Take all the intel you’ve gathered this past year on market conditions and what it will take to connect to your customers, build your marketing projections from the bottom-up and plan ahead for next year.
Lower your taxable liability by paying your 2021 marketing in full
Paying for your marketing now can save you from a bigger tax bill in April. You read that correctly. Now let me preface this by saying you will want to speak to your CPA, attorney or tax specialist for specific tax advice, but the math can work in your favor if you take care of your marketing now as opposed to remaining reactive through next year.
For example: if you made $150,000 in profit in 2020 that you will be subject to paying income taxes on; if you spend $30,000 on your marketing for 2021 before the end of December or your fiscal year, you will only pay taxes on $120,000!
Many of your marketing expenses are tax deductible, and it is beneficial to negotiate and pay for your communications well in advance.
You don’t want to get behind the competition
You know the old adage; if you haven’t started planning for the year ahead, you’re already behind the curve. It might be magnified even more so now given the avalanche of reality over the course of the last eight months, but one thing is for certain, if you want to carve out more market share, you can best believe your competition is thinking the same thing.
Marketing campaigns don’t just happen overnight. They take a lot of time. From ideation, to tactical execution to reporting on every measurement of success, there are a lot of stops a marketing campaign makes on its way out the door and into the digital and physical world.
Plan the work — and work the plan in 2021, and give yourself enough time to thoughtfully put a plan in place so it can be successful.
Author: Brooke Pfautz
Brooke is the CEO and Founder of Vintory and is well known in the Vacation Rental industry as the authority when it comes to growing Vacation Rental inventory. You'll find Brooke at his home office, on the latest Vacation Rental webinar or podcast, or at industry events across the States.