Simple Tax Planning Tips for Small Business Owners

One of the most common questions business owners ask is: How much should I set aside for taxes?

Many entrepreneurs feel overwhelmed or surprised by their tax bill simply because they were never taught how to plan for it throughout the year. The good news? With a simple system in place, you can take control, stay organized, and reduce stress.

Here are three practical ways to plan ahead for taxes:

1. Set aside a percentage of every payment

A common starting point is 15–30%, depending on your income and business structure. For example, if you earn $8,000 in a month and save 20%, you would immediately set aside $1,600. Doing this consistently prevents the scramble of finding a large lump sum at the end of the year.

2. Review financial reports monthly

Tracking income and expenses each month lets you adjust your tax savings as revenue changes. For example, if your revenue jumps from $5,000 to $12,000 in a busy season, increasing your tax savings proportionally builds a stronger buffer and keeps you prepared.

3. Use a separate bank account for tax savings

Keeping your tax funds separate from your operating account prevents accidental spending. Many clients find that once the money is separated, it’s much easier to stay disciplined and avoid surprises at tax time.

Planning for taxes isn’t just about compliance—it’s about building financial stability, predictability, and peace of mind as your business grows.

If you want support staying organized, keeping your books accurate, and preparing for tax season with confidence, we’re here to help. Reply to this email to let us take the stress of business finances off your plate.