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Re: mckinley1 post# 152726

Friday, 06/29/2018 7:16:46 PM

Friday, June 29, 2018 7:16:46 PM

Post# of 346682
Did you know that profits are taxed, revs aren't? Are you saying that instead of reinvesting in business, one should pile up cash and pay tax on it? Don't get me wrong, at some point in the distant future, profits will become important. But that time is not now. It is important that EVERY RED CENT in profit from operations is invested back into biz. My accountant and I sit down every year in Nov/Dec to go over my tax liability. This helps me decide if I should purchase a piece of needed equipment. I also use this to determine yearly bonuses for my employees. Last year I purchased 14 acres of land to store trailers/equipment. The less my company shows in net profit, the less I send to Uncle Sam. Business 101. Over time, I will run out of big ticket items to purchase that I see providing me a return on investment. At that point though, all of the depreciated property and equipment I own are now assets. The more assets I accumulate, the more valuable my business is. Business 101. Until one understands how a business runs, (actually has owned a successful one) it maybe hard to understand how to spot a good one. There are a bunch of books written by very successful people in the business world you could read explaining many of these topics your concerned about. Hope this helps, have a weekend