What Are The Myths And Errors To Avoid When Calculating My Estimated Taxes?

What Are The Myths And Errors To Avoid When Calculating My Estimated Taxes?
Whencalculating your quarterly or yearly tax liability, always makesure you are thinking about your business's whole financialpicture. A lot of small company proprietors get swept up within themyth that 'whatever my company bank account balances is on December31st is exactly what I will need to pay tax on. As the December 31bank account balance could be a very helpful figure when carryingout a fast income calculation, it is commonly very misleading whenidentifying the profitability of the business. Products like havingto pay lower debt, borrowing money, transporting charge cardbalances, having to pay personal expenses, paying back investorloans, disbursing profits towards the proprietors, etc. will allimpact how much cash is incorporated in the bank in the finish ofthe season, and can don't have any effect on the companyprofit.