Uncommon Tax Planning with Ricky De Hamer

Episode 50:

We all need to pay our taxes, but some people hesitate to work with an accountant. If you own a business, you’ve got to get over that attitude. Finding a good accountant who can help with tax planning and so much more isn’t a necessary evil. It’s the right business decision.

On this episode, we’re talking with a fellow business owner and our own tax planner, Ricky De Hamer. Tax laws change in small and large ways all the time, so having a professional who understands business and understands those changes can make a huge difference in your own business.

Tax preparation is just a part of the conversation. We talk with Ricky about tax prep, tax implications for different business entities, and much more. If you wish you knew more about how to find a trusted advisor for taxes and money management, you’ll want to listen in.

Ricky has over 13 years of public and private accounting experience. He’s been a big help to us, for sure. He has served on the Board of Directors for the Accountants Association of Iowa and is currently the President of AAI. He earned his BA in accounting at Central College in Pella, IA.

What You Will Learn in this Episode:

  • The importance of audited financials
  • How to use a tax professional as a resource as you start out and grow a business
  • The impact of the structure of your business
  • Differences in business entities
  • Taking advantage of legitimate business tax deductions
  • What the new tax laws mean for personal deductions
  • How non-traditional small businesses (like AirBNB) impact your income tax
  • Why you might consider a Health Reimbursement Account and how it differs from an HSA
  • Why online tax prep platforms are not the best choice for business owners
“Audited financials are helpful to have when you are looking for a loan. The term ‘audited financial statement’, technically called a compiled financial statement, needs to be completed by a licensed public accountant.” – Ricky De Hamer Click To Tweet “When you get to the point where you are either hiring employees or the business gets beyond a side-hustle, that’s when you want to set up payroll and withholdings. You want to have a plan throughout the year.” – Ricky De Hamer Click To Tweet “When I'm working with a business on a monthly basis, we're staying on top of things. That's one of the advantages of having a relationship with an accountant. It prevents surprises. You don’t want tax surprises.” – Ricky De Hamer Click To Tweet “The reason why people choose to structure as an S Corp versus a C Corp is you generally pay fewer taxes as an S Corp. When you start offering benefits like health insurance, that’s when people look at becoming a C Corp.” – Ricky De Hamer Click To Tweet “As a business, there are some expenses that you need to make sure you include in your tax return because the taxes will come back to bite you if you don't get those deductions.” – Ricky De Hamer Click To Tweet “HRAs or Health Reimbursement Accounts are becoming more and more popular because the restrictions aren't nearly the same as health insurance.” – Ricky De Hamer Click To Tweet “An engagement letter is helpful when you decide to hire an accountant or any professional. It’s good for us as the accountants and also for the clients so everyone understands what they should expect to get from the arrangement.” – Ricky De Hamer Click To Tweet “Sometimes mistakes do get made on tax returns. But if you do get a letter from the IRS, don’t just assume you owe that money. Take it to a professional and have them look at it. Don’t just write a check.” – Ricky De Hamer Click To Tweet