Now is 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. It can be as simple as creating 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 start putting that money away regularly – it could be weekly, twice a month, or maybe just once a month. But put it away. Trust me; it will hurt less if you do it lita tle along the way!
You will still want to check in with your CPA in September to ensure 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 bask in the joy of the success you achieved instead of worrying about what you owe the government for that success!
Why You Should Open a Dedicated Savings Account
Why do you need financial management?
The real question is, “Why don’t you need financial management?” Most small businesses struggle because they aren’t comfortable analyzing and tracking what’s going on with their numbers. These reports can be difficult to understand unless you can read between the lines and see the big picture, month to month. ZümiFi can help. We believe that “working” your financials is much like exercising… We all know what we “should” be doing, but it’s often hard to get into the habit. So if you don’t like staring cross-eyed at financial reports, let ZümiFi create and manage the reports for you.