[Interview] Pro Tax And Financial Consultant Dennis Domazet Shares Some Essential Tips For Small Business Owners
Dennis Domazet is a professional accountant and financial consultant with more than 20 years of experience in the field. After earning post-secondary degrees in Commerce and Economics from the University of Toronto, Dennis spent many years in senior positions at the international professional services firm Deloitte. These days, he devotes his time to helping small business owners navigate the complexities of tax law through his own boutique consulting and accounting practice.
Dennis Domazet specializes in guiding his clients toward long-term success in a business climate that is often harsh and unforgiving to small business owners. Today, he shares with us some of the most useful insights he’s gathered during his career so far.
Q: What are some of the biggest challenges small business owners face when it comes to managing their taxes, and how do you as a professional tax accountant help them navigate these issues?
Dennis Domazet: A lot of small business owners have a tough time staying on top of their financial records and making sense of all the complicated tax laws and regulations mandated by the government. That’s where I step in — I offer personalized services that make it easier for them to manage these and other financial matters. In doing that, I aim to break everything down into simple terms and offer practical solutions so that they can stay compliant without any more stress than is necessary. At the end of the day, it’s all about helping my clients focus on what really matters: running their businesses.
Q: In your experience, what are the most common tax mistakes small businesses make, and how can they avoid them?
Dennis Domazet: Keeping thorough and well-organized records. I know that it’s easy for receipts and invoices to get lost or for expenses to go undocumented, but that can really come back to bite you come tax time. Another mistake that crops up a lot — or maybe this is better characterized as a lost opportunity — is missing out on legitimate deductions, or sometimes trying to claim things that don’t really qualify. Once again, the best way to avoid these issues is by staying organized throughout the year. Keep detailed records and don’t wait until the last minute to try to gather them all up. Also, it helps to have a pro in your corner who knows the ins and outs of tax law. They can help you maximize your deductions and make sure that your business stays compliant with all rules and regulations at the same time.
Q: As someone with decades of experience in accounting, what’s your philosophy when it comes to managing your clients’ finances?
Dennis Domazet: My professional philosophy is rooted in a very simple concept: do whatever is best for the client and will help their business the most. I find if I apply that line of thinking to any decision I have to make — large or small — then the correct course of action usually reveals itself to me.
Q: How do you maintain strong, long-term relationships with your clients, and what do you believe makes a great financial consultant?
Dennis Domazet: Well, beyond being my clients, they’re my neighbours and many are my friends. Some of them own businesses that I patronize myself. But no matter how long or how well I’ve known them, I take the time to try to understand them as people first and clients second. I believe that’s what makes a great financial consultant — not just offering good advice but understanding the human being behind the business. When you build trust and genuinely care about a person, those are the relationships that tend to last for years.
Q: What advice would you give to a small business owner who feels overwhelmed by the complexity of tax planning and financial management?
Dennis Domazet: Stay organized. It will ultimately make your life much easier. This is across-the-board advice, but it is especially true regarding taxes and other matters of finance. When you get a receipt or an invoice, file it immediately in a convenient, easy-to-understand system. The same is true for any financial documents or reports you either generate or receive. What kind of system you use doesn’t matter all that much, just as long as you know where to find these materials when you really need them. When you’re organized, you’ll find that managing your business becomes far less stressful and much more efficient.