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Avoid the Surprise Tax Bill! Here’s What Smart Business Owners Do #shorts

8 Apr 2025 · 1 min

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1:03

A brief YouTube #short in which Bob Gauvreau advises early-stage business owners to proactively set aside money for taxes (weekly or monthly) to avoid an unexpected year-end tax bill that can harm cash flow. He describes his personal practice of making weekly tax installments and invites viewers to reach out with questions.

Chapters

One of the biggest mistakes that I see, especially on in early on businesses, is that we're going along, we're collecting all this money, we're collecting sales tax, we're not paying tax along the way, we're maybe buying inventory or reusing that money to essentially reinvest in the business. And then we come to the end of the year and we have a big tax bill, one that we weren't necessarily expecting and it may put you in jeopardy from a cash flow standpoint. We want to avoid this at all costs. Not all people want to pay the government up front, but if you want, we can start putting this aside up front. Here's what I recommend. So for me personally, I actually make a tax installment weekly on my personal taxes. Why? So that I don't have a bill owing at the end of the year. So if you're interested and you're proactive in looking to plan your tax bill out, make sure you start setting aside money up front on a weekly basis, at least on a monthly basis. Hopefully that's super helpful. If you have any more questions about that, make sure to reach out.