Goal: Save adequately for taxes
It’s TAX season! Are you excited....or terrified??
After implementing Profit First, many small business owners get excited to see money saved intentionally for taxes, making the whole season worry-free.
Yes, you read that right – our clients are excited to pay their tax bill when they have properly planned for it!
Wouldn’t you love to approach money matters with ease and confidence?
It’s so much better than the alternative...
– constant stress
– worry about being “too profitable”
– panic and spend at the end of the year
Most businesses manage cash flow like so: generate revenue, pay the operating expenses, pay taxes, take owner’s draw, then see if there is any “profit” left over.
In Profit First, we flip this – we set aside “profit” – a certain amount of money to safeguard (save). Then, we set aside funds for the owner to pay themselves, set aside funds to plan for taxes, and finally, allocate funds for operating expenses. This prioritization helps to ensure that the business is cash positive and sustainable. If you don’t have money to set aside for any of these things, it is time to make some big changes!
Save for taxes from Day and Dollar 1. Same with making a profit AND paying yourself!
Reason #3 for Implementing Profit First in 2024 - Not be surprised by a tax bill!