4 Lessons We Can Learn from Popular Sitcom Schitt’s Creek
Schitt’s Creek is a hilarious and incredibly poignant Canadian sitcom that wrapped up its final season earlier this year.
Following the financial crisis and downfall of a filthy-rich family, the Roses, founders and owners of a successful north-American video store empire, the show shows how this family of four must adjust to a life without money, all because of financial misdemeanors.
Though the patriarch is a business whizz, the show explores the result of hiring a fraudulent business manager that never paid their taxes, thus leading to their assets being seized.
While quite entertaining, the show also gives viewers some important finance-related reminders.
1.Everyone needs to manage their finances.
It’s crucial to manage your finances, whether you’re a corporate giant or a home-run business. Of course, you don’t have to do it yourself, but knowing what’s happening within your business is crucial to decision-making and sustainability. Johnny Rose made the mistake of hiring an unreliable and sketchy business manager—but you don’t need to do that.
At Faber LLP, you can count on our corporate finance experts to provide you with the most transparent, realistic business advice and financial management services.
2.Have a backup plan ready
Having a contingency plan—something explored in another Canadian sitcom Workin’ Moms—is crucial. Investments, purchases and even business transactions might never go as planned, and when deals fall through or you’re met with problems, your backup plan will help you to stand on your feet.
It’s essential to have various types of saving and backups, including emergency funds, savings, estates and assets that add value. For both business and personal reasons, these backups become incredibly relevant, for instance, asset acquisitions can help you retain control of your business, but sell major assets to recover costs or losses.
3.You’re not exempt from taxes.
Only two things in life are certain: death and taxes.
Not even the rich are exempted from paying them. The Roses went on without paying their due diligence for years before the government caught up with them. It wasn’t deliberate on their behalf, but their wealth allowed them to escape the brunt and urgency of making thee payments, leaving it up to their manager to handle this.
Working with tax advisors and consultants can help you keep track of your taxation, recording and paying income tax and corporate taxes that keep you on track. We offer advisory services to our clients, too, helping them find the most tax-effective structures fort their businesses.
4.Tax deductions are not free money.
One of the most important lessons the show addresses is the mean of tax deductions. Again, through inexperience and lack of awareness, David Rose assumes tax deductions will help him avoid paying for his personal purchases.
This is a mistake that a lot more business owners and employees make, but we’re here to explain the way you can benefit from tax deductions, calculating your savings and implications in light of your expenses.
Let us help you understand your deductibles and save where saving is possible. Every penny counts when growing your profits!
While there’s a lot the show has to offer, the fact that its premise is around finances, taxes and the issues that many of us don’t pay enough heed to is a wonderful example of practical realities. Packaged in a digestible manner, we’re reminded of how important it is to manage our finances effectively.
If you’re a business or individual based in Edmonton, give us a call for our audit, bookkeeping and tax advisory services!