If you’re a small business owner, you may be enjoying some great tax benefits. However, you are keenly aware of the importance of proper accounting when it comes to paying taxes. One of the best ways to manage your business’ cash flow and avoid potential penalties is to pay your taxes quarterly, rather than annually.
Why Pay Quarterly?
It has been said that the only things we can rely on in life are death and taxes. When it comes to paying Uncle Sam, it just makes good business sense to divide that sum into equal amounts every three months. The last thing you want as a business owner is to be faced with a tax “emergency” where you may not have the cash flow to cover it. It may seem like a bother to pay taxes more often, but when the annual deadline looms, you’ll be glad you did. As long as you’re organized and keep accurate records, paying quarterly might be your best business move.
But I Hate Bookkeeping!
We get it. Many small business owners dread the accounting chores that are required for tax filing. That’s understandable, and it’s the reason so many simply put it off until the annual deadline, then try to play catch up. But when file quarterly, you still have a predictable schedule of deadlines – you just get to take smaller bites on the payments. If you don’t enjoy procedure (and who does?), your best bet is to hire a CPA to manage your filing and quarterly payments.
How a CPA Can Help
By consulting a CPA, you’ll have a clear understanding of whether quarterly filing is right for your situation. And with that qualified help, you can file with confidence, no matter when you do so. Just because your business is small doesn’t mean you don’t need a CPA. And contrary to popular belief, you can actually save money by hiring one. When you let a professional handle your quarterly tax filings, you can:
- Reduce your tax liability (pay less!)
- Avoid tax penalties
- Make sense of local and federal tax laws
- Alleviate stress
- Meet important deadlines
- Divide taxes into more manageable payments
What to Do Next
The best way to decide if you should be paying taxes quarterly is to talk to a qualified CPA. They can advise you on whether this schedule is financially beneficial for your type of business. Then, they can handle all paperwork that comes with filing on your ideal schedule. With a CPA’s help, you can rest assured that your taxes are taken care of while you focus on running your business.