There are a million tips out there, like: Save your receipts. Contribute to retirement. Be an S-corp!

The problem is there's no "why" behind those. If you don't know why you're doing those things, you're going to miss out on a lot of tax deductions. You can go through the motions, but you aren't making money moves that support your life goals. Blanket advice is one-size-fits-all and everybody's goals, business, household, goals, and priorities are different.

Once you have some things documented and categorized, the first report you'll need to understand is your income statement, or your profit-and-loss report. Income, minus expenses, equals profit. Seeing what goes on from month to month will allow you to see patterns and plan accordingly. Now, you will be taxed on that profit line, even if you didn't pay yourself that much.

Another report you need to understand is your balance sheet. Assets and liabilities, what do you have and what do you owe? This report is where your owner's draw, or owner's pay, will show up. So you can do all the things, but if you don't understand the strategy behind it you won't be able to make the moves that will move you forward.

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DISCLAIMER:

I am not a financial advisor and this is not financial advice. My podcast is for educational purposes and is my personal opinion only. To make the best financial decision for your situation, please do your own research and if needed, seek the advice of a fee-based, fiduciary.