Were you chugging along through March, busy and working, keeping things afloat, enjoying the fact that Spring arrived and another winter is over, when suddenly it hit you like a ton of bricks: April is coming, taxes are coming! I can almost hear the squealing of brakes as your feet hit the floor, pushing against the inevitable turn of the calendar page to April and the dreaded tax season. Do you have the money to pay for your taxes?
It doesn’t have to be dreadful or stressful!
You can have the money to pay your taxes without stress. Yes, you can—it doesn’t have to be a payment that breaks you, scares you, or drains you dry. When you chose to start an interior design business, it was not easy, but you managed the difficulty of pricing interior design services and setting up your interior design business plan. Now, you’ll conquer taxes the same way: with a plan.
First Step: Create A Payment Plan
Business 101 will talk about dividing the year into quarters, so three months for each quarter. Once you organize your interior design financial statements to provide you a picture of the business each quarter, you’ll be able to plan accordingly quarter by quarter.
Now, you’ll be able to manage your tax payments. It works like this old parable:
A wise woman was once asked a silly question, How do you eat an elephant? to which she answered very succinctly, “One bite at a time.”
Same concept—small chunks at regular intervals that will break down the large amount into manageable portions. It won’t break or drain your business this way. For each quarter, you’ll determine an amount that will go toward taxes. Then, check the amount against your financial statements and set it aside in a bank account that is just for tax payments.
Second Step: Budget For Payments
Once you have the amount established that you’ll pay to taxes each quarter, budget for it. You’ll know your interior design pricing and interior design salary expectations, so you can monitor your accounting and keep that tax money fluid and ready. At the end of the quarter, you’ll be ready to take that amount designated for taxes from the appropriate bank account and pay Uncle Sam.
Remove Stress Around This Payment
There’s a bit of a national hysteria every April because we all dread doing our taxes. The paperwork, the money, the debt, all heighten our anxiety. And anxiety is contagious—one person’s worry wears onto the next and soon, tax season is a scary month feared by all.
Don’t buy into the hype! You have carefully worked on pricing interior design services to create your interior design salary and business, and you will keep your cool in April, too, by doing the same careful work. Taxes will not be a payment that catches you by surprise, and let me reassure you, this is a payment you can handle.
Be calm, and pay taxes!
If you need assistance creating a strategy to feel worry free at tax time, check out the Master Your Profit course.
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