You’d probably rather not think about taxes right now, but it’s a good time to review your situation. By now, you should already have made two tax payments in . Even if you’re using the Profit first system, mid-year is an excellent point to check in with your accountant and see if you’re on track with mid-year tax projections.
Don’t have an accountant? That’s okay. You probably have some sort of bookkeeping system in place, like QuickBooks, Wave, or Gusto. Then, you can print out your profit and loss through the end of June, double the income, and use an onlineIf you find that you’re behind on estimated tax payments, you still have half a year to catch up. Just calculate how much you’re short, divide it by the six remaining months, and add that amount to your tax bucket every month.
Michalowicz finds that most businesses can cut 10 to 20 percent of expense overnight, “such as frivolous costs like unused recurring membership fees, office space that impresses no one, or that expensive car that is ‘justified” because it is an expense.”Any recurring expenses: rent, subscriptions, internet access, training, classes, magazines, etc.
Add up all the costs and then multiply that number by 10 percent. And then cut that cost by that number. To do this, you’ll likely have to cancel whatever your business doesn’t need to run efficiently and keep your customers happy or negotiating any remaining expenses.Going through the process itself should be very enlightening and get you to be more intentional about changes you want or need to make.
After going through the assessment, make sure to give yourself some downtime to recharge for the second half of the year.