Now is the time when you are finding out what you owe in taxes for the success you created in 2021. Hopefully, you had a lot of success! But the downside is that if you did have solid profits, you likely owe taxes on those profits now. And far too many business owners get “caught” owing taxes but not having the cash available to pay what they owe. There is a better way!
Smart businesses plan ahead. It can be as simple as creating a dedicated savings account to stash monies away throughout the year for your eventual taxes. Your CPA will be estimating what you might owe now for estimated taxes. So just start putting that money away regularly – could be weekly, or twice a month, or maybe just once a month. But put it away. Trust me, it will hurt a lot less if you do it little by little along the way!
You will still want to check in with your CPA in Sept or so to make sure that you are setting aside the appropriate amount, but those adjustments/corrections should be smaller. Planning will save you a lot of angst for the next tax season, so hopefully, you can just bask in the joy of the success you achieved instead of worrying about what you owe the government for that success!