Does Your Business Have A Plan For Taxes?

There are two kinds of people in the world: planners, and those folks who would prefer to fly by the seat of their pants. We understand how spontaneity can be exciting and adventurous when you’re on vacation in a new city, but when it comes to maintaining your business’ finances spontaneity is a liability. We always recommend that our clients come prepared with a plan for taxes.

One of the most important things to plan for is the major expenses you can expect to incur throughout the year. As the saying goes, it takes money to make money. If your lack of planning makes it difficult for you to order new inventory, hire new employees, or pay your taxes when they come due, then you will be rendering yourself unable to make money.

More often than not, major expenses can be anticipated. For instance, if you depend upon a large piece of equipment to run your business, you know that in order to keep it running smoothly you must keep up with quarterly maintenance. So, that anticipated maintenance should be included in your budget. In addition to regular maintenance you should have an idea of how much it would cost to replace that piece of equipment and have cash on hand in case that becomes a necessity.

The same goes for inventory, the ordering of new product lines, and even hiring new employees. It can be expensive to fill your whole retail store with the newest season’s clothing. But a fully stocked space is part of what attracts your customers to your store. If you haven’t set money aside to invest in new merchandise, you’ll never be able to turn a profit. 

One, potentially large, expense that you must plan for is your taxes. Do you have a plan for taxes? If you’ve hired a competent accountant you should have no question how much money you owe in taxes at the end of each quarter. And while it’s tempting to take every dollar that comes in the door as profit, it’s critical that you have a plan to continually set aside funds throughout the year to pay your taxes. If all of this sounds a bit over your head, chances are you don’t have a great financial team in your corner. We have an easy way to solve that for you. At Fix-It Accounting we offer bookkeeping and accounting services so that our clients can rest assured knowing their finances are managed properly throughout the year and that there will always be money set aside to pay their taxes.

It’s not uncommon for the creative entrepreneurs in the world to struggle with the financial side of their business. But never fear, that’s where we come in. Give us a call today to learn more about how we can help you to be prepared for whatever important expenses come up this year.