October 13, 2020
Many people assume that athletes only have to worry about their athletic skills to make the most out of their sports, but not many realize that they also have another skill to worry about: keeping track of taxes. Athletes are just like many of us and have to go through tax planning to ensure that they make the most out of their income. That being said, if you are a baseball athlete on the professional level, the chances are that you have to deal with tax laws. If so, we highly recommend that you work with a CFO advisory to assist you. Here is why:
1. You do not have much time
Tax planning takes a lot of time. When you are in the field practicing your swings and exercising, you probably do not have time to do taxes yourself. Plus, you may find it challenging to focus on your sport if you have issues with your taxes. While you should not give up your training to do taxes, this does not mean that tax planning should be ignored.
With a CFO advisor's help by your side, you will not have to worry about this balance anymore. You can go out there focused entirely on getting better at the sport you love, while the advisor can sit down and keep themselves up to date with the latest tax requirements you need to follow.
2. There is a lot involved with tax planning
There is a lot more involved with your taxes than you may realize, all of which can affect your taxes one way or the other. Also, there are many ways to handle taxes. Some may allow you to meet the minimum requirements and satisfy the IRS, but others can do more and let you enjoy tax deductions to save money.
That said, one aspect that many athletes may get wrong is regarding royalties. While they may seem simple enough, royalties require more attention and focus than you may realize. You have to calculate the exact total of the royalties you receive and keep tabs on all of them.
There are so many things that go into your finances that can affect your taxes for the long term. With a CFO's assistance, you can ensure you do your taxes right and simplify the process as much as possible.
3. Mistakes can cause you to lose money
When the tax season comes, you can face plenty of problems if you have not kept up with recording all your earnings and creating a good tax plan. Unfortunately, as an athlete, the field of taxes is different from that of an average person. You have to account for your salary, bonuses, royalties, and more, all of which require tax planning. Mistakes in any of these will lead to expensive fines and the like, and missing out on deductions can also hurt your finances significantly.
When you work with a CFO advisory, you will not have to deal with any lost money. They will curate a tax plan for you, helping you get your taxes correct right from the beginning to make the most out of every tax season.
Conclusion
Taxes are a headache for everyone, athlete or not. If you have not considered working with a CFO advisory yet, do so right away. Many baseball athletes start without one by their side and soon find out that their taxes are lagging behind. As a result, they end up hiring one to take care of completely avoidable problems.
Do not put yourself into a situation where you have to juggle between your sport and your accounting. Remember, professional baseball is more than just your performance on the field; it involves your ability to do finances well, too!
Aaron Parthemer is the President and CEO of PMG Private CFO Services and provides advisory assistance to professional athletes, executives, and more. If you are looking for an accounting service in Fort Lauderdale to take control of your taxes, contact us today!
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