136. Embarrassed about your tax situation? This episode is for you!

In this episode of the 'Keep More Money' podcast, Kimberly Tara, CPA CTC, discusses the challenges women business owners face with managing their finances and taxes. She emphasizes the importance of overcoming fear and embarrassment associated with financial management, sharing stories and insights from her experiences talking with hundreds of women business owners. Kimberly provides practical steps to help you take control of your tax situations, improve your financial strategies, and ensure you receive adequate support from your CPA. 

Connect with Kimberly on Instagram: @kimberlytaracpa

Transcript

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Welcome to Keep More Money, the podcast for profitable women business owners who are tired of overpaying in taxes and tired of chasing down their CPA, deferring to someone else for every financial decision and getting hit with surprise tax bills every April. If you've ever felt like you'll never truly get on top of your business finances, this show is for you. I'm Kimberly Tara, CPA certified tax coach, multi-business owner, and mom of four littles. With over a decade of experience and more than 15 million saved for my clients, my mission is to educate and empower women just like you to keep more of their money, reduce financial stress, and create lasting wealth. Taxes suck, but they don't have to hold you back. I'll show you how to make tax strategies simple, fun and easy to understand. You've worked hard for your success and now it's time to keep more of it. Let's dive in. I am so glad you're here with me today because this conversation that we are about to have is extremely important. I actually pushed back the episode I originally had planned and recorded because of some of the things that I've been hearing at events in my dms. And after actually being in person at our first ever live sponsored event, I knew that this was a conversation I needed to bring to you because this is where it all starts. The ability and opportunity for you to keep more money to make smart. Financial decisions to make money moves. It all comes back to how you feel around taxes. And so what I mean by that is something that I hear a lot is, I'm embarrassed to admit this, or I didn't know that. I was falling behind. I didn't know that my CPA was doing X or was not doing Y and it's just really sad that. This is how you feel and that you don't have the support. And so before we dive into to all of the things, I have four, four points that I wanna share with you today to hopefully help you no longer feel any embarrassment, any fear, any discomfort, any shame around taxes and where you are in your business. It is my goal to. Help you come up with some solutions after this episode to figure out how you can move forward. And so you're not alone. You're not the problem. I had someone tell me recently in the dms, when we were talking about how we have a 72 hour guarantee response, time response policy at the CP at the T paper. She was like, wow. And, and I, I think the context that I told it to her in was. Well, it's sad that we have to make this guarantee because so many CPAs out there just don't respond or take weeks or months to respond. And you know, we're typically like same day next day, the 72 hours is because we're human, because life happens, because deadlines happen. Right. But it's just so sad. And she told me, she was like, oh my gosh, I thought that it was me. I. Like I had no idea that my CPA not responding was really on them and that there is another option. And so that's what I want you to walk away from today's episode with, is that you're not alone. If you feel some type of way, I can 100% guarantee you, you are not the only. A woman, CEO to feel this way, the only business owner who feels this way. And it's not just you and it's probably not even something that you are doing wrong. So about a week ago, we were sponsoring our first in-person event. It was really cool. I flew out to Dallas, we co-sponsored the VIP night, and then we had a table. During the next day for the actual event, I was on stage twice. We did a rapid fire Q and a. I was on a panel, it was amazing. And I got to see Becca. She drove up and she was helping me kind of man the table and chat with everyone who was coming up to talk to us and. That was really her first experience, I wanna say in the wild, but it wasn't really in the wild, but that was her first experience being in an environment with other women, business owners who were not comfortable having these conversations were money people, were finance people, were tax people. These conversations are pretty normal for us. And so this was the first time that. She felt it in her heart when she told me. She was like, these women, they're so scared to share with me the truth, where they are, how things are going, and I hate that for them. I like, there is no judgment, but they're so embarrassed too. Say, you know, if they're a couple of years behind in taxes or they have a large tax balance due, and I just, neither of us want you to feel that way. And so the truth unfortunately is that smart, successful women, that's, you feel this way all the time. You are probably excellent at the thing that you do, and I would also venture to say that you didn't start your business because you were really excited to have more complex tax returns to have, to make even more financial decisions than you already do. But the reality is, is that. This is something that you have to take the reins of. We have, you have to get past this fear, this embarrassment, and these mindsets because if you don't, you won't ever be able to find the right person for you make the right moves for you and really have your business be something that can catapult your success and. Really help you strategically use it to pay less in taxes. So the first point that I wanna share with you is that your fear and your embarrassment, they're holding you back. Okay? And so what I mean by that is when you're silent you're delaying something you're repressing it, you're pushing it down. And so the more that you stay quiet. The less questions you ask the less nudges you give your tax pro, right? The more things get delayed and then that becomes a compounding problem. And that compounding problem can be you're a couple of years behind in filing your tax returns. It could be you have a large balance due. It could mean that you're not paying quarterly estimates. It definitely means that you're not implementing proactive strategy. And so instead of it, instead of being just one year behind. On your tax return or you owe$2,000, suddenly before you know it, you look up and you send me a DM on Instagram saying, I can't believe that I'm three years behind and I have to still go back and file 2022. Now, the good news is that I was able to tell this person. I told her, I was like, well, if it makes you feel any better, the most that I've ever had to do is nine. Past tax year. So we did 10 tax returns at a time.'cause we had the current year and then nine prior years. And for businesses it's really important that we go in order. So we had to do all of those first. And she was like, actually that does make me feel better. So if that makes you feel better, I want you to know I've gone up to as much as nine years of past tax returns and done 10 years worth of tax returns at one time. Okay? So I promise. I've seen it all. I've seen clients with more than six figures in IRS debt, just IRS debt alone. I don't want your fear and embarrassment to hold you back. This is a safe space for you. This is a space where you can ask us any question. There's no judgment. There's just solutions. There's just action steps. There's just us partnering with you. So that your fear, your embarrassment, are no longer holding you back. Okay? Point number two that I wanna make is I, I've kind of already alluded to this, but it's really, really important that you hear me on this. You are not alone, and you are not the problem here. Okay? This system is broken. Your CPA is unhelpful. Your withholding tables are not set up correctly. you're not bad with money, but you do need to be aware of it. And so while you are not the problem, because I firmly believe what y'all, I just, the stories that I hear of what CPAs have done to clients, to you, I am. Floored, quite honestly, and I'm embarrassed. My embarrassment comes from the fact that my profession is supposed to be held to one of the highest standards. You know, I put us up there, CPAs, doctors, lawyers, government officials, right? Like we should be held to higher standards, to higher ethics. And so I just I, there are no words. For the experiences that you are having I wish that I could fix it for you. Unfortunately, I can't, unfortunately, those CPAs, those accounting professionals, because many of them are not even licensed, there's nothing I can do to fix it. They're the louder marketers. All I can do is help clean up on the back end and help you figure things out and not make you feel. Feel bad about it, right? I had someone reach out to me in the dms and that's why I decided to go ahead with this episode is because between the conversations at Boss Vision Con and then the, just the amount of dms I've had recently, you needed to hear this too, right? Because maybe you haven't worked up the courage yet to send me a dm, but I need you to know that it's okay if you do. And that other women are. And so it was a bookkeeper actually who was trying to help a potential client who is working with someone right now that does both, does all of like the bookkeeping, the payroll, the tax prep, the quote unquote tax strategy, the CFO, one of those one-stop shops that you know I really don't care for. And this is exactly the reason. And so we got into a group Instagram thread. And I was like, okay tell me the person's name because what this person is doing is such a red flag and is not giving this client access to their own QuickBooks account, their own Gusto account. And you own. Your software you own, right? And so I always recommend if you're listening to this, that you are the one who sets up your QuickBooks Gusto Zero, right? Like we will help our clients walk through that, like that Gusto setup if they need it. Like maybe we're electing for them to file as an S corporation. And so they need to run a reasonable owner's compensation. And we help them do that through Gusto, but they own it. Right. Like we're sharing the screen, they're setting it up. It is, it is theirs. We don't own it. So that's a huge red flag. If you work with someone who's like, oh no, I'll own it, I'll set it up. Because then unfortunately, like this person that I'm talking to now, she's like, I can't even access my stuff. Like, what if they mess it up? And so I was like, okay, well that's unethical. And tell me their name. Tell me what state. Just tell me their name. I'll I'm a private investigator. I'll figure out what state they're in and I will. Figure out, do we have some leg to stand on, maybe with the state board of accountancy? Nope. This person has no credentials. Right? They're just allow marketer. And so if you've experienced that, like I could go on and on about the stories, and it's really important to me that I don't only talk about the negative things today. Like I, I've thought about that. I'm like, how do I share that you are not alone in what you're experiencing. And I don't wanna scare you, right? And I don't wanna paint only a negative picture, but it is so important to me that you know, that I've pretty much heard it all in the last decade. And there's pro, I mean, every now and then I get surprised by the way the behavior of financial professionals, especially those more in the online world. But there's nothing you can tell me. That's gonna make me think that it was your fault or you're the problem probably unless you actually didn't do what you were supposed to do. But if you're listening to this, that's probably not you. Okay. So you're not alone and you're not the problem. Number three, small steps that you can take today. What does that look like for you? step one is to figure out what years you haven't filed. If that's the case, step two is to reach out to me, send me a DM on Instagram. I'm at Kimberly Terrace, cpa. It is a tiny, tiny step. It is not scary. And tell me what's up and let's talk about it because. My clients will tell you, my friends will tell you. My family will tell you. I'm honest, but I'm kind about it. And most importantly, I'm gonna have help you find a solution. I'm gonna come up with action steps. I would tell you that people who I have assisted in the dms who haven't even come to work with us, they're like, thank you so much for just like taking the time to respond to my message. You responded, and I'm not even a client and I can't get my own CPA to respond. Like what? That's crazy. That's crazy. Okay, so I'll help you figure out and I'll be honest with you, if it's really bad I'll be like this isn't the greatest. But we tackle it one small step at a time. We come up with an action plan and we move forward you would be surprised how much those little small steps, just knowing you have a plan. Oh my gosh. It can take so much weight off of your shoulders because I know that this is weighing you down. I know that this is stressing you out. Okay. I can hear it in your voice. I can see it in your eyes when you talk to me. Okay. I know how hard this is for you, and I don't want it to be like that anymore. Figure out where you stand. If you know you're behind on filing taxes. Work on figuring out which, what was the last year you filed? Make sure your 2025 financials are up to date. We're in September right now, so you know we're coming up on the end of the year. So if you don't have all of that, now's the time to start looking into it. And if you're behind, it's time to find someone who can help you. Not be behind. And if you think, okay, like I'm good, I've filed everything, but I'm definitely not getting the service and the education and the support and the strategy that I should be, now's the time to find someone new. Okay? Not January or February. All right? And then the last point that I wanna tell you is action. I wanna give you some action steps, okay? So that you can make a change. I want you to feel empowered to determine if you need to make a change. And if you determine that you do need to make a change, I want you to actually do it, okay? Because now is the time. So the first thing that you need to do is really reflect on the type and level of support that you're currently getting. Is it just once a year when you file your tax returns, you drop'em off, you upload them, whatever that looks like, they prepare your taxes and send you a bill. If you're a business owner, I'm here to tell you that's not enough. It's not enough. And if you are only meeting with your CPA one time a year, or your tax preparer, you're leaving money on the table. So after you kind of think about. What your support looks like, and maybe jot this down like I'm not a huge journaler, but sometimes like I need to write my thoughts out. And this is something that is such a big deal that you should absolutely be writing your thoughts out. So think about what your CPA does for you now. How much do you pay them? How often do you talk to them? Do they reach out or do you reach out? Do they respond within a reasonable amount of time? Second, I want you to decide what level of support you think you need, and kind of like make a list, like in a dream world, what support would you like to have from your CPA? Think about where your profit is. Obviously, the more profitable you are, the more support you need. But think about the kinds of questions that come up for you during the year. Make the list because when you're researching new tax strategists, new CPAs know what you're looking for and you can make sure that you're comparing apples to apples and you know what your non-negotiables are. And it helps you eliminate people that aren't gonna meet those needs that you have. And I always encourage you to have at least three, two or three people that you speak to, whether that's on a qualification call, how we do whether that's going to a webinar that the person has chatting with them in the dms. Do your due diligence. I tell people all the time when they're like okay, well I'll get back to you because I am interviewing some other people. I'm like, amazing, amazing. And guess what? Nine outta those 10 people, they always come back to us. But you know what else? Nine outta those nine people who come back to us feel so confident in their decision because they know what else is out there and it's not very good. those are the important things that I want you to take away from today's episode is number one, that your fear and embarrassment, they're holding you back and there's no reason. I mean, maybe with the person that you're currently working with, you should have some fear and maybe they make you feel embarrassed, but around here at the Terra CPA firm, no, that's a hard no. Okay, we're here to lift you up. We're here to help you get through it. Number two is that you're not alone and you're not the problem. Okay? I am overwhelmed by the amount of stories, by the amount of women reaching out, asking for help. I promise you, you're not alone. I also know that based on your stories, that you, for the most part, you're not the problem. I hate to say it. I hate to be lumped in with this industry, but it's the reality and I don't sugarcoat it here. Number three is what small steps can you take today, figure out. The last tax return that you filed. Okay. Figure out if your 2025 financials are up to date. Okay. And then number four is, take some action steps to make this change so that you can move beyond this and you can really use your business strategically. You can keep more money in your pocket and you can build wealth for the long term. So think about maybe journal out what type, what your support looks like right now from your CPA. Think about what level of support you would like to have. I'm not saying you can afford it, I'm not saying you'll actually get that, but what would you like to have? You need a starting place and then figure out who you can talk to. And even if you're not ready to schedule a call, reach out in the dms. Right? Maybe. Maybe they have something free like our Keep More Money masterclass or our Keep More Money challenged, right? And so you're not committing to anything long term. I want you to. I think about this was something that I can't remember where I heard it, but it was a saying and it really stuck with me because while I don't have a lot of embarrassment around money and finances, I have a lot of embarrassment around some other things. And that's a whole episode for a different day that I do plan to share with you. I'm working on it, but somebody once told me Embarrassment thrives in the dark. But the second you name it, the embarrassment starts to disappear. And so what I wanna leave you with today is that if this is you, if this is how you've been feeling, whether you've felt this way for one week, one year or 10 years, you're not broken, you're not behind, and you have absolutely nothing to be embarrassed about. By taking one small step today. That's how the cycle ends, and you are so strong, and you are so powerful, and you are so wonderful in everything that you do, that you are the one, you are the person that's going to end the cycle today. So you're not alone. You're not the problem. And you are so beautifully capable of moving forward with the right support. So what I want to encourage you to do now is, if anything, if anything at all resonated in this episode for you, I want you to send me a DM on Instagram. I'm at Kimberly Terrace, cpa. And I want you to tell me what came up for you or tell me what your biggest challenge is or your biggest fear, or the one thing that you're embarrassed of, that you were like, I can't believe I'm saying this out loud. I want you to tell me because I will hold it for you. I will lift you up. I will encourage you and I will help you find a solution. Okay? We are in this together. So I hope you enjoyed this episode. I can't wait to see you again next week with our regularly scheduled episode, and I hope you have a fantastic week ahead. Bye now.