Taxes are the worst. When you own a small business, you begin to appreciate everything an employer has to do with regards to your taxes. Unlike my first go round, for this (re)launch I want to be very deliberate about how I handle my taxes.
Let me just point you quickly to a couple of resources that have helped me with rethinking this subject:
- Profit First: I’ve mentioned this book before. It contains all kinds of wisdom about how to prioritize your business finances, and it’s particularly direct on taxes. In short, put 15% of every dollar that comes in into a separate account, then pay your taxes quarterly. The book is worth a read.
- The Law Entrepreneur Podcast, ep. 73: You’ll have an easier time consuming this content than a book, but it’s no less helpful. Listen to get an overview of tax thinking and train your brain to prioritize this important element of ownership.
I’m doing my best to take this subject seriously, and you should, too. Unpaid taxes have the power to take down a business. I saw it growing up with my parents’ video rental store and I’ve seen it with my old firm. We’re still paying for how poorly I managed that, so we’re intent on getting it right this time.
Using a Profit First mentality, I don’t want to spend money hiring for things I can do right now. Bookkeeping and accounting are things I just shouldn’t do myself.
So look at options for hiring for that task and make sure you get your taxes right. It’s annoying, but vital.