Peach Tea Calculations

Your answer to this question depends pretty heavily on where you are in business.

If it’s contractors, it’s likely that your business is pretty established and you see the importance of letting others work in their zone of genius so you can work in yours for the benefit of growth and scaling.

If it’s education, maybe you’re just getting started and want to hone your skill. Or you want to add another level to your offering so you’re adding a new certification.

And if it’s subscriptions it’s likely that you’re somewhere in the middle—automating before you delegate.

But no matter where you are in business, YOU need to know what your largest expenses are so you can keep an eye on them. (Too many unused subscriptions are hurting your profits aka what you can pay yourself!)

So what’s your largest monthly business expense? A, B, C, or something else? ⬇️

…and heartache. Hear me out!

One of the reasons tax season is stressful is because having a flourishing business comes with a larger tax obligation

But when you plan ahead and pay estimated tax payments you are avoiding that shock (and scrambling to find the money during Q1) because you have been paying in all year

Plus, as a pay-as-you-go entity, the IRS requires you to pay estimated tax payments if you expect to owe $1,000 or more or you could be assessed a penalty if you don’t.

And FYI, 2022 Tax Period One ends March 31, so start getting ready to pay that first payment in April!

Have you ever paid estimated tax payments?

I know this sounds crazy, but scroll to find out why you should throw away paper receipts!

Save this and then spread the word by sharing with your biz friends.

Increasing profits = replacing your 9-5 income

When you pay yourself from your business, you’re doing so from profits. (Of course assuming you have no loans or credit cards, but this should be the goal. But I digress.)

Business revenue - expenses = profits

It’s important to remember that replacing your 9-5 income is going to take a bit longer if you buy shiny courses that you don’t have the time or energy to implement or if you have subscriptions or memberships that you aren’t actively using.

Take some time to really evaluate if you NEED or have the time to implement something before you subscribe or purchase a course.

Invest wisely (because that’s really what you’re doing) and you’ll be able to replace your 9-5 income sooner than you think.