Don't Wait Until Tax Time: Look at Your Business Numbers Every Month

 




Don’t Wait Until Tax Time: Look at Your Business Numbers Every Month

Running a successful business isn't just about making sales. You also need to know where your money is going and what you're actually making.

At the end of each month, take a few minutes to review your business numbers.

What Should You Look At?

Start with a few basics:

  • Total income
  • Business expenses
  • Profit for the month
  • Money owed to you
  • Upcoming bills and expenses
  • Estimated taxes you may need to prepare for

You don't have to be an accountant to notice when something doesn't look right.

If sales are increasing but your bank balance isn't, where is the money going?

If expenses suddenly increased, what changed?

And if your business is having a great year, are you prepared for the potential tax bill?

A Monthly Checkup Can Prevent Year-End Surprises

Waiting until tax season to look at an entire year's worth of numbers can make it much harder to make good business and tax decisions.

A simple monthly review gives you an opportunity to identify problems earlier and better understand how your business is performing.

Tax Services of Tennessee can help you understand your numbers and prepare for taxes before they become a surprise.

We Plan. You Prosper.

This article is for general informational purposes and does not constitute individualized tax or financial advice.

Comments

Post a Comment

Popular posts from this blog

Image
At Tax Services of Tennessee, we believe that a successful business has a responsibility to give back to the community it serves. While we are passionate about helping individuals and businesses with tax preparation, bookkeeping, tax planning, and business consulting, we are equally committed to making a positive difference beyond the office. This year, Tax Services of Tennessee is expanding its community outreach by supporting efforts that help provide lunches for children in local communities. We believe that no child should have to worry about where their next meal will come from. When children have access to nutritious meals, they are better prepared to learn, grow, and succeed. Food insecurity continues to affect many families across Tennessee, especially during school breaks when children may not have access to school meal programs. Community organizations, schools, nonprofits, and volunteers work together to help fill this need through meal programs and local partnerships. Our g...
Read more
Image
self-employed professionals Estimated Taxes, Self-Employment Tax, Tax Planning, Small Business Taxes, Brentwood TN Self-employed individuals generally do not have an employer withholding federal income tax, Social Security tax, or Medicare tax from their earnings. As a result, they may need to make estimated tax payments during the year. Estimated payments are commonly required when a taxpayer expects to owe at least $1,000 after subtracting withholding and eligible credits. Paying the correct amount throughout the year can help reduce the risk of an unexpected tax bill or underpayment penalty. Tax Services of Tennessee helps self-employed professionals and small-business owners estimate their potential tax liability and plan appropriate quarterly payments. Because income and expenses can change during the year, estimated payments should be reviewed periodically and adjusted when necessary. Professional tax planning can help you remain prepared, protect your cash flow, and approach tax...
Read more
Image
  Why Do I Owe Self-Employment Tax? A Guide for Brentwood, Tennessee Business Owners Many self-employed people are surprised when they prepare their tax returns and discover that they owe self-employment tax in addition to regular federal income tax. This commonly affects independent contractors, consultants, freelancers, sole proprietors, and other small-business owners throughout Brentwood, Tennessee. Self-employment tax helps fund Social Security and Medicare. The general rate is 15.3% , consisting of 12.4% for Social Security and 2.9% for Medicare. It is generally calculated on 92.35% of net self-employment earnings. Additional Medicare tax may apply at higher income levels. Employees normally split Social Security and Medicare taxes with their employers. Self-employed individuals generally pay both portions because they are treated as both the worker and the employer. This is why a self-employed person may owe considerably more than someone who earns the same amount through...
Read more