5 Financial Tips for business owners – Tip #4
In the mist of Covid-19 (Corona Virus), we at JDS WebDesign are hoping everyone is safe and practicing social distancing. Over the next several weeks, we are planning on blogging about how to make your website more business friendly. We will have some tutorials on our favorite plugins and features, which will make your site more efficient.
Over the next several weeks, I will outline some financial tips to assist you and your freelance business. Note I am not a certified public accountant (CPA) or an attorney, these tips have help me to stay in business for over 10 years. I would recommend you seek professional advice, these are just tips which has help me.
In the past several weeks, I have discuss Profit and Loss Statements, Applications and Tools to assist you, and how Income is not the only factor to your success. In this blog, I am going to discuss Internal Revenue Service (IRS) and how making quarterly payments can save you a lot in terms of penalties.
My disclaimer, make sure you discuss your situation with a certified public accountant (CPA), attorney, or even the IRS. Early in my freelance career, and mainly because I did not make a lot of money, I was not required to pay quarterly to the IRS. Also this is for United State based individuals, if you live outside the US. You will need to check with your country tax paying system.
Earlier this year, I read a book and provide a review called Profit First by Micheal Michalowicz. In this book, Michael talked about the importance of putting aside a percentage toward your IRS bill. Place it in an account, which is not easy to access. Open an account at an bank, which is on the other side of town. Do not get a debit card. Set up direct deposit and every time you get a sale, deposit a certain percentage in that account. Have your CPA (or if you know how, then you can set up an account with the IRS) set up an account with the IRS and make a payment to them on a quarterly basis.
This method should eliminate the need to make a huge tax payment to the IRS at the end of the year, and all the stress that comes from such a task.
Image courtesy of Josh Appel.
JDS WebDesign is a Web Design and Brand Marketing Agency located in Marietta, Georgia. We create AWESOME on line presence for Start-ups and Influential People/Organizations. To learn more about us or how we can help you and your organization, you can contact us or schedule a meeting.
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