One of the most frustrating experiences as a business owner is facing a large, unexpected tax bill at the end of the year. But it doesn't have to be this way. In this blog post, we'll cover everything you need to know about estimated taxes, how to track them, and tips for saving effectively. Plus, we've got a free pdf guide you can reference at any time. There’s also a done for you tax tracking template that you can purchase for time-saving efficiency. You can find that under the ‘Courses’ section at the top of the page.

Understanding Estimated Taxes: Estimated taxes are quarterly payments you make to the IRS based on your net profit. Unlike W2 employees, business owners must manage these payments themselves to avoid penalties and interest. The IRS requires estimated tax payments if you expect to owe $1,000 or more when filing your return.

Key Points to Remember:

• Taxes are owed on net profit, not just what you take out of your business.
• The IRS collects taxes throughout the year via estimated payments.
• Due dates for estimated taxes: April 15th, June 15th, September 15th, and January 15th.

Setting Up Your Tax Tracking System: To simplify tax tracking, we recommend using a spreadsheet. Here's what to include:

• Net profit calculations
• Tax savings rates (typically 25-30%)
• Estimated payment tracking
• Payment methods and dates
• Tax savings account balance

Practical Tips:

• Consult a tax professional to determine your specific tax rates and obligations.
• Regularly update your profit & loss statements to stay on top of your net profit
• Use electronic tax payment methods for easy tracking and record-keeping.

Managing estimated taxes doesn't have to be a headache. With the right system in place, you can stay organized and avoid any unwelcome surprises at tax time. Be sure to download our free guide and consider our ready-made spreadsheet template for a hassle-free approach. Remember, progress over perfection!

Free pdf tax guide: www.financiallyadjusted.com/estimatedtaxguide

Estimated tax tracking template: https://www.financiallyadjusted.com/store

Disclaimer: This content is for educational and informational purposes only. Please consult with an accounting professional for direct advice based on your specific business situation.