If you’re a small business owner, you know that excess tax bill can interfere with your company’s cash flow. Regardless, forecasting your tax obligation accurately can be challenging, especially when you’re busy running your business. Besides, tax laws change frequently.
Not many people have an idea of the amount to tax they owe until it’s time to pay them. Maybe because they have no bookkeeper or are not sharing relevant information with their bookkeeping professional until a few weeks to tax time.
You may also get hit unexpectedly by your tax bills if you monitor your losses and profits differently from the tax method, or if you’ve deducted some expenses that have to be underwritten for tax purposes.
Whatever your reasons are, if you’re not prepared, your cash flow can experience a crunch that recurs every year. Consolidating tax estimation into your finance management approach can ensure funds flow as expected.
Below are tax planning strategies you should consider: