One of the challenges of being a small business owner is trying to stay on top of your taxes, in addition to your core activities. Increasing your sales is great but it often comes with an extra responsibility to set aside and remit a certain amount of federal and state taxes to IRS and state taxing agencies up to four times per year to keep them from assessing an underpayment penalty and smooth out your cash flow.
Davidoff & Associates, a small business CPA firm in Alexandria VA, can crunch your numbers to calculate either the minimum estimated taxes you have to pay to avoid being charged an underpayment penalty, or amount equal to your entire annual tax due so you will owe little to none on your tax return, all depending on your objectives and current cash flow.
We can either do this as a part of your annual tax return preparation or at any time during a year. While making quarterly payments is highly recommended, if you have already missed one or more quarterly payments, we will make sure to calculate the totals for all remaining quarters.
Paying estimated taxes is a good habit and right thing to do since it shows IRS and state taxing agency that you are a responsible taxpayer, helps you avoid an underpayment penalty and spreads your cash outlays over a longer period of time smoothing out your cash flow as a result.
If you are a business owner with net income on your books, please reach out to us so we can prepare your estimated tax vouchers.