Spring is here! That means sunshine, warmer weather ahead, and tax season. For many business owners, it can be a time of stress as they get their tax bill and wonder the best strategy for paying.
The Internal Revenue Service (IRS) website has lots of resources to help small business owners figure what they owe and how to pay. In fact, they have an entire page dedicated to filing and paying your taxes right here. Did you open the link and feel your eyes glaze over?
The IRS does have lots of resources, forms, and even some free training, but it’s a lot for a busy business owner to muddle through and try to figure out what’s what. You’ll notice the forms to pay, but there isn’t much on how to pay. Trust me, there is a better way, and I can help!
If you feel a little lost and aren’t sure if you’re prepared this tax season, keep reading. Let me tell you a quick story and then I’ll share 3 strategies to help.
What Happens to a Small Business Owner Who Didn’t Pay Their Tax Bill?
This is a true story that happened to a friend of mine. Basically, they started their business and had a pretty good first year overall. It wasn’t until the following tax season, that they realized they didn’t make the required quarterly payments for his business.
Unfortunately, the IRS doesn’t care that they didn’t know and it was an honest mistake. The next year, they had to make double the quarterly tax payments to make up for the lack of payments. Talk about a stressful situation!
We live and we learn, so please learn from their mistakes!
3 Strategies for Paying Your Small Business Taxes
1. Organize Your Business Finances
This seems simple, right? Putting your finances in order and setting up a system of checks and balances will allow you to see the full picture of your business. The better systems you have in place, the more confident you’ll feel - and not just at tax time! You’ll know exactly what you owe and have the funds ready to make the payments.
2. Use the Profit First Method
I spend a lot of time explaining the Profit First Method on this blog post, so please feel free to read that next. Basically, this system of financial planning completely flips the traditional method to focus on cash management strategy - including being prepared for your tax bill. I can give you the core chapters for free! Simply let me know you’d like them by clicking here.
3. Find Financial Expert Support
The IRS website is actually very helpful; however, it’s missing the human piece of the equation. Like with any part of your business, it’s crucial that you have the right support in your corner to help navigate tax season. Instead of skimming the IRS website and hoping you have it all right, find trusted financial experts who will make sure your business is on the right track.
I help businesses big and small organize their business finances and feel ready for tax season. If you think I could be a good fit for you, please click here to schedule a 45-minute introductory consultation. This free call helps us get to know each other and see if there’s an opportunity to work together.
