I know, I know … you are sick of taxes!
And you just paid them (or at least an estimate of what you will owe). But here’s the thing – smart businesses save for taxes all throughout the year. Month by month, or week by week they are putting money away for the tax payments they will inevitably owe.
And REALLY smart businesses check in with their CPA during the year to re-calculate what they are actually going to owe. The benefit? Minor disruption at tax time. Smoothed out cash flows because you don’t have turn over every item in your office to scrape together the money you owe in taxes.
What are the best ways to save for your taxes?
- Get an estimate now from your CPA about what you will likely owe for 2019
- Designate a savings account, specifically to set aside money for taxes
- Do the quick math to figure out how much you need to set aside either weekly or monthly (frequency is probably best determined by how cash flows in & out of your business)
- Set up an automated transfer so that these monies get set aside without you having to handle it directly
- Enter those recurring transfers into QBO so you always know in advance that these monies will be leaving your operating account.
Sound simple? It’s really not that hard. If you need help setting this all up, give us a call.
ZümiFi – here to make things smoother!