Tax Day Surprises!

Tax Day Surprises!   (never good)

Today marks 104 days in the year 2025.  What!? Really!? 

I keep saying I wonder where the year has gone.  Anyone else feeling this way? 

Tomorrow is tax day.  “Wonderful” said no one ever!  It’s a dreaded day every year.  I don’t know of anyone who loves paying taxes.  Me included! 

Here’s the thing, we know it happens every year.  We are given plenty of warning.  We have time to prepare.  But most don’t.  Especially, business owners.  Why?  I believe many business owners don’t fully understand their numbers and don’t have a simple system in place to prevent tax surprises. 

That’s where Profit First can help!  It’s a simple system that can begin with your very next deposit.  It was created to help entrepreneurs understand what is going on with their finances using a cash flow bank balance accounting system.

Here’s an easy description of Profit First and the steps to implement it.

1. Open up additional bank accounts so you have five total. Income, Profit, Owner’s Compensation, Tax, and Operating Expense. 
2. Let all the deposits accumulate each week. Then decide what day of the week you will make allocations and transfers. Let’s say it’s every Monday. 
3. On Monday, open your bank account and see how much is in the Income account (where all the deposits go). Decide ahead of time how much you will leave in the Income account – this might be $500 to $1000 depending on your situation.  Use the remained in the account for your percentage allocations. 
4. Transfer money to each of the other four accounts based on the percentage you have calculated (instructions are in my book & guidebook, Profit First for Dentists).
5. Use the money in each account for that very purpose and that alone.

It is possible to know your numbers completely in as little as 10 minutes a week and 1 hour a month using my system, Profit First for Dentists. 

It is possible to never be surprised by taxes ever again.  You will be fully prepared. 

If you want to learn more, and know how this system has helped many dentists, please reach out.  I’d love to talk with you!  There’s a link at the top to contact me.

Barb Stackhouse RDH, M.Ed.