An excellent post about getting the right accountant and preparing for next year’s tax bill. I hightly recommend checking in with an accountant in December to see what you expected tax bill will be. Also, get organized on Quickbooks or some accounting system where can actually review your P/L and Balance Sheet.
If you’ve ever run your own business or been a freelancer, you know the pain of scrambling to pay an unexpectedly large tax bill. Be aggressive with the amounts you pay on your quarterly payment schedule and you’ll spare yourself a lot of pain down the line.
- Even if you handle taxes yourself, you should see a trusted accountant every December with your estimated year-end totals on revenue and spending to figure out where you’ll stand come April
Every tax day for the last four or five years I’ve owed the IRS thousands of dollars. For the last two years, I’ve met with an accountant in December to handicap where I’d stand come April. It’s been a godsend because I’ve been prepared both times for the worst, and had plenty of savings ready to pay the bill. A December accountant visit is also good for determining if your estimated taxes are inline with your earnings — whether you should be putting away more or less the same amount the next year.