Bookkeeping Tip: Start Saving for Next Year’s Taxes Now

Because the best time to prepare is before you’re panicking.

Tax season just passed—and for many small business owners, it was a painful reminder that Uncle Sam always gets his cut. If you found yourself hit with a bigger-than-expected bill (and maybe a little stress-induced eye twitch), now’s the perfect time to put a plan in place for next year.

The truth is, one of the most common financial mistakes small business owners make is not saving enough for taxes throughout the year. It’s easy to get caught up in day-to-day operations, especially when cash flow feels tight or unpredictable. But ignoring taxes won’t make them go away—it just makes April more stressful.

Here’s a conservative and effective strategy:
Set aside 25–30% of your monthly net income (after expenses) specifically for taxes.

So, if you made $5,000 in profit this month, transfer $1,250–$1,500 into a separate account just for taxes. This simple habit builds up your reserve over time and gives you peace of mind when tax season rolls around.

And here’s an important rule:
Don’t borrow from your tax savings account.
Tempting? Maybe. But think of it like this—taking from that account is basically borrowing from the government. And guess what? They will come collecting. Always.

To make it easier, open a separate high-yield savings account labeled something clear and intimidating like “TAXES – DO NOT TOUCH.” Automate the transfer each month so it becomes routine, just like paying a bill.

By next April, you’ll be in control—not in panic mode.

Need help calculating what you should be setting aside, or want someone to help you clean up your books so you’re not guessing anymore?

✅ Join the DBR Bookkeeping Online Community: Click here to join
📞 Or schedule a free 30-minute consult with Dr. Bryan Raya, QuickBooks ProAdvisor: Book a call

Let’s start Doing Business Right—and keep tax time drama-free.