1428 Financial

What I’ve learned as a business owner? There’s a surprising amount of UNLEARNING that happens along the way.

You start out with certain ideas about how things “should” be done—maybe you think you need to be hands-on with every little detail or that you should always be the “doer” rather than the delegator. But the reality is, as your business grows, some of those old habits can hold you back.

You have to unlearn the impulse to micromanage, let go of the idea that you can (or should) do everything yourself, and shift your mindset from working in the business to working on the business.

This unlearning process can be uncomfortable at first, but it’s necessary to move from being the person who’s running everything → to the leader who’s guiding the vision, empowering your team, and making smarter strategic decisions. It’s all about shifting your mindset as your business evolves.

I unlearned a few things so (hopefully) you don’t have to!

Let me know in the comments if any of these resonate with you or what YOU are having to unlearn in the business world 💵💻

📆 Tax season is getting off to a strong start with all of these January tax deadlines (looking at you 1099s!).

As a business owner, here are the deadlines you're going to want to stay on top of!

📆 January 17th: Q4 Individual Estimated Tax Payment is due. If you expect to owe more than $1,000 in taxes in 2022, you should be making estimated tax payments. If you're a W-2 employee, your paycheck withholdings should be covering your obligation. However, if you're self-employed, you're responsible for sending in these payments yourself.

📆 January 31st: This is the date to get Form W-3 filed (to get those W-2s to your employees!) and 1099s out to your contractors.

Stay tuned over the next 4 months for key date reminders!

Now that we’ve had a little time and space since tax season ended (unless you’ve filed an extension that is), let’s talk about tax refunds.

Are they a good thing?

It’s always nice to receive money, so waking up to $3k deposited into your account can feel pretty nice. Especially if you want to pay down your debt, save for that kitchen reno, or have some extra money for that vacation next month.

BUT. Think about it this way - you gave the government an interest free loan for the last year.

What could you have done with that money in the past 12 months?
Taken on less debt and therefore paid less interest.
Gone on vacation.
Put it in a high yield savings account to earn you interest.
Invest.

The list goes on and on; the options are endless. The point is - you’d have that money and be able to spend it how you choose. Sounds pretty good to me!

So now you may be thinking ok Annie, so what am I supposed to do about it?

If you have a W2 job, talk to them about filling out a new W4 to adjust how much money is taken out of every paycheck for taxes.

If you are an entrepreneur and paid estimated taxes throughout the year, you’ll want to adjust how much you paid. If you pay on your own based on a percentage of profits, consider adjusting the percentage you use. If your CPA pays for you, talk to them about tax strategy and how you can adjust for next year.

What questions do you have about tax refunds? Drop them in the comments!