Tax Planning for the Future
Now that you understand when to report and pay, and have a basic understanding of what deductions you might receive, it’s time to do a bit of tax planning. After all, some cash saved now will help you avoid receiving a tax bill that makes you want to skip town later.
You should work with a tax professional to come up with a general amount to save throughout the year for your taxes. We recommend saving at least 15% of your revenue each month in a separate bank account. Yes, each month.
Remember Erica’s tax bill from earlier? If she would have saved each month, she could have paid her bill and moved on to better (and less expensive) things.
Don’t Sacrifice Your Sanity for the Sake of Your Taxes & Accounting
We all have our nightmare stories such as attempting to file our taxes on the same day as a plumbing emergency that floods the office. Yet, it doesn’t have to be this way. By taking control of your finances and outsourcing your tax prep and accounting to a professional, you can save your sanity.
Take the Next Step in Building a Healthy Business
With a solid handle on your firm’s finances, you can now see how your decisions will impact your firm’s profitability and cash flow. You’re ready to manage your business with data instead of just a hunch or gut feeling. With your finances in check, you can turn to all the tools healthy firms use to create a healthy business. Want to learn more about what successful firms do?
Learn more about building Healthy Profits as part of your Healthy Firm.