It's hard to believe that we are almost 3/4 of the way through 2019. In the US you just sent your quarterly tax payment in (it was due Sept. 16).
Or did you?
Take it from me, you DO NOT want to owe taxes to the IRS. I have been there, and it's the worst. Talk about sick to your stomach.
It's crucial you are proactive regarding your tax situation. Here's what you need to do going into Q4.
1) Check in with your accountant and/or tax preparer today and have them report to you on your tax position for the year so far. If you have grown this year it is very likely you will owe more tax than you have been sending in quarterly. Starting to prepare for that NOW will save on your antacid bill on April 15th.
2) If you haven't already, separate the taxes you will owe from your operating account. It's too tempting to "borrow" money from your main account and then never put it back. The minimum you should be putting away is enough to cover quarterly payments. Take it out of your Operating Account and leave it alone until you have to write that wonderful check to the tax man. You'll be glad you did.
Those two simple steps will help make sure you don't dread the next tax deadline, by being prepared and having managed your cash well.
Now go do it!
One of the most stressful times of the year for many business owners is "tax season" - that frustrating period of time between about the end of January and middle of April, when your accountant or tax preparer is performing some kind of alchemy on all the receipts, documents and records you sent them from the past year, coming up with your tax bill for the year.
You spend that period of time hoping and praying (and maybe doing a lot of sweating) that you don't owe a bunch. Because you don't have any extra cash just lying around waiting to send to the government.
I've been there.
And it's not always about just sticking your head in the sand and hoping that taxes just get abolished so you don't have to pay them. One of the big mysteries surrounding taxes for me was how to know if I was putting away enough as our business scaled. We grew really fast over the period of three or four years, and the privilege of earning more is you get to "contribute" more to the tax man.
And while you aren't going to get out of paying your taxes, April 15th (or 30th my Canadian friends) doesn't have to turn you into a stress monster every year.
Implementing the Profit First Cash Management System in your business will ensure that will not be left scrambling at the end of the year coming up with money you don't have to pay a tax bill you don't really want to, but have to. You can delay paying your vendors, or yourself, but the tax man is GOING to get his.
NOW is the time to get your tax situation settled for next year, and once and for all.
Contact me today and let's get working on getting your taxes taken care of for next year, as well as creating your permanently profitable business.
Let's Do This!