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What Are The Myths And Errors To Avoid When Calculating My Estimated Taxes?
TinaMark
When calculating your quarterly or yearly tax liability, always make sure you are thinking about your business's whole financial picture. A lot of small company proprietors get swept up within the myth that 'whatever my company bank account balances is on December 31st is exactly what I will need to pay tax on. As the December 31 bank account balance could be a very helpful figure when carrying out a fast income calculation, it is commonly very misleading when identifying the profitability of the business. Products like having to pay lower debt, borrowing money, transporting charge card balances, having to pay personal expenses, paying back investor loans, disbursing profits towards the proprietors, etc. will all impact how much cash is incorporated in the bank in the finish of the season, and can don't have any effect on the company profit.
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∙ 9y ago
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