Cash flow planning

by | February 21, 2008

As we begin a new year… well, as we move forward in a new year, remember to plan for your tax liability. It’s easy as a small business owner to think that the amounts you’re paying yourself aren’t significant but if you don’t pay as you go or save for the taxes, you’ll end up with a hefty bill come January and your business cash flow may not allow for you to pay such a hefty amount in one lump sum. The same planning should go into savings accounts and 401K plans — rather than waiting until the end of the year to contribute the full amount, put aside the amounts each month so that the cash flow impact is lessened.