Business Owners: How to Use Year-to-Date Numbers to Make Better Tax Decisions
Financial Horizons: Insights for Building Wealth and Securing Your Legacy
Business Owners: How to Use Year-to-Date Numbers to Make Better Tax Decisions
By Dr. Jose G. Cardenas | Chief Tax Strategist, The C & R Group, LLC
Business owners love revenue.
It is visible.
It is exciting.
It tells you customers are buying.
But revenue alone does not tell you whether your tax plan is working.
Suppose your business has generated:
$800,000 of revenue
through August.
Sounds great.
Now I ask:
“What is your year-to-date net profit?”
Silence.
Then:
“How much have you already paid toward your 2026 taxes?”
More silence.
Then:
“What do you project your taxable business income will be by December 31?”
And suddenly we discover that the business owner knows the sales number but does not know the number driving much of the tax decision.
That is the problem.
By September, a business owner should be able to see substantially more than gross revenue.
You should know:
Year-to-date revenue;
Year-to-date expenses;
Net profit;
Owner compensation;
Distributions or draws;
Payroll;
Estimated taxes;
Cash reserves;
Accounts receivable;
Major upcoming purchases;
Expected Q4 activity.
The federal income-tax system operates on a pay-as-you-go basis. The IRS specifically notes that individuals who are in business for themselves generally pay taxes through estimated payments, and those payments can cover both income tax and self-employment tax. The IRS also recommends recalculating estimated taxes when earnings change rather than continuing to rely on an outdated projection. (IRS)
That leads to today's central principle:
Your year-to-date financial statements should not merely tell you what happened. They should help you decide what to do next.
1. Start With a Current Profit-and-Loss Statement
The first report I want from a business owner in September is:
January 1 through August 31 Profit & Loss.
At minimum, it should show:
Revenue
$________
Cost of goods sold / direct costs
$________
Gross profit
$________
Operating expenses
$________
Net profit
$________
That net-profit number becomes one of the starting points for tax projection.
Without it, we are guessing.
And tax strategy built on guesses tends to produce very precise surprises.
2. Revenue Is Not Taxable Profit
Imagine a company with:
Revenue
$750,000
Expenses
$550,000
Net profit
$200,000
Another company has:
Revenue
$500,000
Expenses
$225,000
Net profit
$275,000
Which company may have more income subject to tax?
Potentially the second one.
Despite having:
$250,000 less revenue.
That is why:
Revenue measures activity. Profit helps measure tax exposure.
Do not build a tax strategy around your top line.
3. Compare Year-to-Date Profit With Last Year
Now add context.
Suppose:
2025 full-year business profit
$160,000
2026 profit through August
$185,000
You have already exceeded last year's annual profit.
That is a tax-planning signal.
Yet if your estimated payments were calculated using last year's income and never revisited, your tax funding may be behind.
September is the time to find out.
Not March.
4. Compare Actual Results With the 2026 Budget
Your budget said:
YTD projected revenue
$450,000
Actual:
$575,000
Variance:
+$125,000
Excellent.
But now look at profit.
Projected profit
$120,000
Actual profit:
$175,000
Variance:
+$55,000
Now the tax conversation changes.
A business outperforming the plan should trigger:
a new tax projection.
Success is good.
Unfunded tax liability attached to success is avoidable.
5. Do Not Simply Multiply August Profit by 1.5
If eight months of profit equal:
$160,000,
a simple annualization might suggest:
$240,000 full-year profit.
Maybe.
But first ask:
Is Q4 historically stronger?
Is Q4 historically weaker?
Are large contracts scheduled?
Will bonuses be paid?
Are insurance renewals coming?
Will equipment be purchased?
Are annual professional fees due?
A projection should reflect the actual business cycle.
Not just arithmetic.
6. Separate Recurring Revenue From One-Time Revenue
Suppose your YTD revenue includes:
$150,000 one-time contract
that will not repeat.
Do not automatically annualize it.
Likewise, if you signed a new recurring client in July:
The remaining four months may produce more revenue than the first eight-month average suggests.
Classify revenue as:
Recurring
$________
Seasonal
$________
One-time
$________
Contracted but not yet earned
$________
That produces a stronger forecast.
7. Review Gross Margin
Tax planning should not ignore business economics.
Suppose sales increase:
30%.
Fantastic.
But direct costs increase:
50%.
Your gross margin may be deteriorating.
Calculate:
Gross Profit ÷ Revenue = Gross Margin
Example:
Revenue:
$600,000
Gross profit:
$240,000
Gross margin:
40%.
Compare with:
Prior year;
Budget;
Industry expectations.
A tax deduction cannot fix a structurally weak margin.
8. Review Expenses by Category
Do not look only at total expenses.
Break them down.
Examples:
Payroll;
Contractor labor;
Advertising;
Insurance;
Rent;
Software;
Professional fees;
Travel;
Vehicle expenses;
Supplies;
Interest;
Repairs;
Equipment.
Then ask:
What changed?
An unusual increase could represent:
Legitimate growth;
Waste;
Misclassification;
Capital expenditure;
Personal expense posted incorrectly.
Better tax planning starts with cleaner books.
9. Identify Personal Expenses Inside the Business
A common mistake is assuming:
“The business paid it, so it is deductible.”
No.
Payment source does not determine tax deductibility.
Review potentially mixed items:
Meals;
Travel;
Vehicles;
Cell phones;
Internet;
Entertainment;
Family expenses.
Classify correctly before projecting taxable profit.
A P&L loaded with personal spending is not a tax strategy.
It is a bookkeeping problem.
10. Review Accounts Receivable
Your P&L is only part of the picture.
Suppose clients owe:
$150,000
but the business has only:
$40,000 cash.
That matters.
Ask:
Total AR
$________
Over 30 days
$________
Over 60 days
$________
Over 90 days
$________
Tax planning and cash-flow planning need to communicate.
A profitable business can still be cash poor.
11. Review Accounts Payable
Now look at what the business owes.
Accounts payable
$________
Payroll due
$________
Debt payments
$________
Taxes due
$________
Your bank balance is not:
free cash
if significant obligations are already attached to it.
Before making a year-end purchase or owner distribution:
Know what the business actually owes.
12. Build a Tax Reserve
Suppose the business checking account shows:
$200,000.
Owner thinks:
“We have $200,000 available.”
Not necessarily.
Part may belong to:
Payroll;
Vendors;
Debt service;
Taxes.
Create a separate tax reserve.
Current tax reserve
$________
Projected tax obligation
$________
Funding gap
$________
That one calculation can prevent a very unpleasant spring.
13. Review Estimated Tax Payments Against Current Profit
The IRS states that individuals including sole proprietors, partners, and S corporation shareholders generally may need estimated payments when they expect to owe at least $1,000 when the return is filed, subject to the complete estimated-tax rules. Estimated payments should be recalculated when expected earnings change. (IRS)
List:
Q1 federal payment
$________
Q2 federal payment
$________
Q3 federal payment
$________
State payments
$________
Then compare them with your updated projected liability.
The question is not:
“Did I make quarterly payments?”
It is:
“Were they enough?”
14. Understand the Estimated-Tax Safe-Harbor Framework
For many individuals, estimated-tax planning considers whether withholding and credits will equal at least the smaller of:
90% of the current-year tax, or
Generally 100% of the prior-year tax, with special rules applying to certain higher-income taxpayers.
The IRS's 2026 Publication 505 lays out these rules and specifically instructs taxpayers to update the calculation as current-year income changes. (IRS)
This is important because:
Avoiding an underpayment penalty
and
fully paying this year's tax liability
are not necessarily the same objective.
A safe harbor may reduce penalty exposure while still leaving a substantial balance due.
Plan for both.
15. Review Owner W-2 Compensation
For S corporation owners:
Review:
Owner wages YTD
$________
Projected annual wages
$________
Business profit
$________
Distributions
$________
Shareholder-employees who perform services generally need reasonable compensation under the applicable rules.
September provides time to review payroll before the year closes.
Do not wait until January to discover:
“We should have run more payroll.”
16. Review Owner Distributions
Owner draws or distributions are not automatically the same as:
business expenses.
If the owner takes:
$100,000
from the company,
that does not necessarily reduce business taxable income by:
$100,000.
This distinction surprises many new business owners.
Your bookkeeping should separately identify:
Compensation;
distributions;
reimbursed business expenses;
shareholder loans where applicable.
Cash leaving the bank account does not automatically equal tax deduction.
17. Review Shareholder or Partner Basis
For pass-through businesses, basis can affect:
Loss deductibility;
Distribution treatment;
Other tax consequences.
If the business owner has:
Large distributions;
Losses;
Debt changes;
Capital contributions,
basis deserves review.
Do not wait until the return is being prepared to reconstruct several years of basis history.
18. Review Fixed Assets
Pull the fixed-asset list.
For each item:
Description;
Cost;
Purchase date;
Placed-in-service date;
Business-use percentage.
Examples:
Vehicles;
Machinery;
Computers;
Furniture;
Equipment;
Building improvements.
Then compare that list with the books.
If a $40,000 machine is buried inside:
Office Supplies,
the books need correction before projection.
19. Separate Repairs From Capital Improvements
A business may spend:
$75,000
on property.
But the accounting and tax treatment can depend on what actually occurred.
Was it:
Maintenance?
Repair?
Improvement?
New asset?
Do not assume:
“We paid it this year, so deduct all of it.”
Classification matters.
The projection should reflect the anticipated treatment rather than simply the cash payment.
20. Review Planned Q4 Equipment Purchases
If you already intend to purchase equipment:
Now is the time to review:
Business need;
Cost;
Financing;
Placed-in-service timing;
Depreciation alternatives;
Cash impact.
The correct decision is:
Buy what the business needs and then optimize the tax treatment.
Not:
Buy something you do not need because taxes are high.
If you spend a dollar only to save a fraction of a dollar in tax, the business is still poorer by the difference.
21. Review Payroll Expense
Payroll is often one of the largest business expenses.
Compare:
Payroll through August
$________
Projected Q4 payroll
$________
Bonuses
$________
Employer payroll taxes
$________
Benefits
$________
If staffing increased substantially during the year:
Update the projection.
Do not annualize first-half payroll when the company hired five people in July.
22. Review Contractor Payments
List contractors paid year to date.
Contractor 1
$________
Contractor 2
$________
Contractor 3
$________
Then verify:
W-9 on file;
Payments classified correctly;
Worker classification reviewed;
Information-reporting requirements anticipated.
January should not be the first time you discover:
“We don't have this contractor's tax information.”
23. Review Retirement-Plan Contributions
A profitable year may create retirement-planning opportunities.
Depending on the business and employee structure, possibilities may include:
401(k);
Solo 401(k);
SEP IRA;
SIMPLE IRA;
Other qualified plans.
But business owners should not view retirement planning solely as:
“How much can I deduct?”
Also review:
Cash requirements;
Employee obligations;
Long-term retirement objectives;
Administrative costs.
The tax strategy should support the retirement strategy.
24. Review QBI Using Current Numbers
The 2026 IRS Publication 505 notes that recent legislation made the Qualified Business Income deduction permanent and added 2026 changes, including a potential minimum deduction of $400 for taxpayers with at least $1,000 of total QBI from active trades or businesses, subject to the full rules. (IRS)
Business owners should therefore include QBI in current-year projections where applicable.
But do not simply calculate:
20% × profit.
The actual deduction can be affected by:
Taxable income;
Business type;
W-2 wages;
Qualified property;
Other limitations.
Model it properly.
25. Review Multiple Businesses Together
A business owner may have:
Operating company;
Rental company;
Consulting business;
Side venture;
Partnership investment.
Do not run a tax projection on only the largest business.
The return may combine results from several activities.
Create a schedule:
Business A projected income
$________
Business B projected income/loss
$________
Rental activity
$________
Partnership K-1 estimate
$________
Now you have the full picture.
26. Get K-1 Estimates Early
If you own an interest in:
Partnership;
S corporation;
Other pass-through entity,
and you do not control the books:
Ask for an estimate.
Waiting until:
March
for the K-1 means you may be waiting far too long for planning.
September estimate:
Not perfect.
But substantially more useful than:
nothing.
27. Review Interest Expense and Business Debt
Business debt can affect:
Cash flow;
Profit;
Expansion capacity.
Track:
Principal payments
$________
Interest expense
$________
Remember:
Principal and interest are not generally treated identically for tax purposes.
A $10,000 loan payment does not necessarily equal a:
$10,000 deduction.
Your books should separate the components.
28. Review Inventory
For businesses carrying inventory:
Ask:
Beginning inventory
$________
Purchases
$________
Ending inventory estimate
$________
Inventory affects cost of goods sold.
And cost of goods sold affects profit.
A business with weak inventory records can produce an unreliable tax projection even if the bank reconciliation is perfect.
29. Review Bad Debts and Uncollectible Receivables
Accounts receivable may show:
$100,000
but perhaps:
$20,000
is highly doubtful.
Depending on accounting method and applicable tax rules, the treatment requires analysis.
At a minimum:
Identify the problem now.
Do not carry fictitious economic value into every financial decision simply because an old invoice still sits in QuickBooks.
30. Review Sales Tax Separately From Revenue
Sales tax collected from customers may sit in the bank account.
That does not necessarily mean it belongs to the business.
Reconcile:
Sales tax collected
$________
Sales tax remitted
$________
Sales tax payable
$________
Do not mistake tax collected for:
profit.
That money may already have another owner.
31. Review Payroll Tax Liabilities
Same principle.
Payroll liabilities may include:
Federal withholding;
Social Security;
Medicare;
State withholding;
Unemployment taxes.
Those funds should be reconciled.
Cash in the account does not automatically equal operating cash.
Payroll trust obligations deserve particular care.
32. Review Your Balance Sheet
The P&L tells you performance.
The balance sheet tells you position.
Review:
Cash
$________
Accounts receivable
$________
Inventory
$________
Fixed assets
$________
Debt
$________
Accounts payable
$________
Equity
$________
A business can show strong profit and still have a weak balance sheet.
Taxes are only one part of the financial decision.
33. Profit Does Not Mean Cash
Suppose:
YTD profit
$250,000
but:
Accounts receivable
increased by:
$150,000
and:
Debt principal payments
used:
$50,000 cash.
The owner asks:
“If we made $250,000, where is the money?”
Excellent question.
Profit and cash flow are different.
Tax projections should therefore be paired with:
cash-flow projections.
Otherwise the owner may know the tax bill but not know how to fund it.
34. Build a Q4 Cash-Flow Forecast
Project:
Beginning cash
$________
Expected collections
$________
Payroll
$________
Vendor payments
$________
Debt payments
$________
Equipment
$________
Taxes
$________
Expected ending cash
$________
Now tax planning becomes integrated with operational planning.
That is where business owners make better decisions.
35. Determine the Minimum Cash Reserve
Ask:
How much cash does this company need to operate safely?
Maybe:
One month expenses;
Three months;
Six months.
The answer depends on:
Industry;
Revenue stability;
Payroll;
Debt;
Customer concentration.
Do not distribute every dollar above zero.
A profitable company without working capital is fragile.
36. Review Owner Distributions Against Cash Requirements
Owner wants:
$75,000 year-end distribution.
Before paying it:
Review:
Tax reserve
Funded?
Payroll
Funded?
Vendors
Funded?
Debt
Funded?
Q1 2027 operating cash
Funded?
Then decide.
Owner distributions should come from:
informed surplus.
Not:
whatever the bank balance happens to show Friday afternoon.
37. Review Planned Bonuses
Business owner considering bonuses to:
Employees;
Management;
Owner.
Model:
Payroll taxes;
Cash requirements;
Deductibility timing;
Compensation strategy.
Do not announce large bonuses before determining whether the company can:
fund the bonus, payroll taxes, operating costs, and tax reserve.
Generosity is admirable.
Insolvency is less festive.
38. Review Family Employment
If family members legitimately work in the business:
Review:
Actual duties;
Reasonable compensation;
Payroll;
Documentation.
Do not create year-end fictitious wages solely to produce deductions.
Real tax strategy follows real economic activity.
39. Review Your Entity Structure
The YTD numbers may reveal that the business has outgrown its current structure.
Example:
Sole proprietor expected:
$30,000 profit.
Projected actual:
$180,000.
That may justify reviewing:
LLC structure;
S corporation election;
Payroll implications;
Administrative costs.
But the answer should come from modeling.
Do not change entities because someone on social media said:
“S corps save taxes.”
Run the economics.
40. Do Not Make a Late Entity Election Without Understanding the Consequences
Entity changes can involve:
Election deadlines;
Payroll;
bookkeeping;
state filings;
reasonable compensation;
tax returns.
If structure needs review:
Start early.
A rushed December restructuring can create more compliance problems than tax savings.
Business Owner Case Study: The $1 Million Revenue Company
Assume Maria owns a professional services company taxed as an S corporation.
At the beginning of 2026, she projected:
Revenue
$900,000
Net profit before owner compensation adjustments
$220,000
Owner W-2 wages
$100,000
The tax strategy was built around those assumptions.
September Numbers Arrive
Actual January–August results:
Revenue
$720,000
Operating expenses
$455,000
Net operating profit before certain year-end adjustments
$265,000
And four months remain.
Maria says:
“We're having a great year.”
Correct.
Now we need to determine:
“How great?”
Step 1: Project Q4 Revenue
Contracts already signed:
$250,000
Additional probable revenue:
$80,000
Projected annual revenue:
Approximately:
$1,050,000
The company crossed seven figures.
That is worth celebrating.
But celebration is not projection.
Step 2: Project Q4 Expenses
Expected:
Payroll
$85,000
Rent and overhead
$35,000
Marketing
$20,000
Professional fees
$15,000
Other expenses
$20,000
Projected Q4 expenses:
$175,000
Now the profit forecast becomes more realistic.
Step 3: Update Projected Annual Profit
YTD profit:
$265,000
Projected additional Q4 revenue:
$330,000
Projected Q4 expenses:
($175,000)
Simplified projected additional profit:
$155,000
Projected annual profit before additional adjustments:
Approximately:
$420,000
Compare with original projection:
$220,000
Difference:
+$200,000
The tax plan needs an update.
Immediately.
Step 4: Review Taxes Paid
Maria has already paid:
Federal estimated taxes
$45,000
Federal wage withholding
$18,000
Total federal payments:
$63,000
But those payments were built around the lower projection.
The updated household tax calculation may show a significant funding gap.
Now Maria knows in September.
That is a problem she can manage.
Step 5: Review Owner Compensation
Projected profit increased substantially.
Owner wages:
$100,000
The reasonable-compensation analysis deserves a fresh review.
Not because profit automatically dictates a particular salary percentage.
Because the facts changed.
Document the analysis.
Step 6: Review Retirement Plan
Maria wanted to increase retirement savings.
Now the company has:
Higher profit;
Stronger cash flow.
A retirement-plan review may fit both:
Long-term wealth goals;
Tax planning.
But the plan is selected because it makes economic sense.
Not merely to create a deduction.
Step 7: Review Equipment
The firm already intended to replace:
$40,000
of aging technology.
Now the tax adviser reviews:
Timing;
Placed-in-service date;
Depreciation treatment.
The firm buys equipment it actually needs.
The tax strategy follows the business decision.
Correct order.
Step 8: Build the Tax Reserve
Updated tax projection produces an additional expected tax requirement.
Maria moves money into:
separate tax savings.
Now she does not accidentally distribute or reinvest money earmarked for the government.
Step 9: Protect Q1 Cash
After:
Payroll;
tax reserve;
planned equipment;
vendor obligations,
Maria calculates expected January cash.
Only then does she determine:
year-end owner distribution.
This is integrated business planning.
What Would Have Happened Without the YTD Review?
Maria might have entered Q4 thinking:
“Our estimated taxes are already handled.”
Then:
December:
Large distributions.
January:
Payroll and operating expenses.
March:
Tax return prepared.
April:
Large tax balance.
Now she has a liquidity problem.
The business did not have a:
tax-rate problem.
It had an:
information-timing problem.
September solved it.
The Business Owner YTD Dashboard
REVENUE
YTD:
$________
Projected Q4:
$________
Projected annual:
$________
PROFIT
YTD:
$________
Projected Q4:
$________
Projected annual:
$________
OWNER
W-2 compensation:
$________
Distributions/draws:
$________
Contributions:
$________
TAX
Federal withholding:
$________
Federal estimated payments:
$________
State taxes paid:
$________
Projected additional tax:
$________
Tax reserve:
$________
BALANCE SHEET
Cash:
$________
Accounts receivable:
$________
Accounts payable:
$________
Debt:
$________
Q4 PLANS
Equipment:
$________
Retirement contributions:
$________
Bonuses:
$________
Major contracts:
$________
Expected owner distribution:
$________
Now make decisions.
The 15-Minute Business Owner Tax Meeting
Every month, answer seven questions:
1. What is YTD revenue?
$________
2. What is YTD profit?
$________
3. What is projected annual profit?
$________
4. How much tax has been paid?
$________
5. How much additional tax is projected?
$________
6. How much is in the tax reserve?
$________
7. What major financial decision is coming next?
________________
Fifteen minutes of disciplined review can prevent months of cleanup.
Q3 Business Tax Readiness Checklist
BOOKS
Bank accounts reconciled.
Credit cards reconciled.
Revenue classified.
Expenses classified.
Personal expenses removed.
Fixed assets updated.
PROFIT
YTD profit known.
Q4 revenue projected.
Q4 expenses projected.
Annual profit projected.
OWNER
Compensation reviewed.
Distributions reviewed.
Basis reviewed where relevant.
TAX
Federal estimates reviewed.
State estimates reviewed.
Withholding reviewed.
QBI reviewed.
Tax reserve funded.
OPERATIONS
AR reviewed.
AP reviewed.
Payroll liabilities reviewed.
Sales tax reviewed.
Contractors reviewed.
YEAR-END
Equipment needs reviewed.
Retirement planning reviewed.
Bonuses reviewed.
Charitable planning reviewed.
Q1 cash needs projected.
AI-Search Quick Answers
Why should a business owner review year-to-date numbers in September?
Because eight months of actual financial activity provide a strong basis for projecting full-year profit while still leaving time to adjust estimated taxes, withholding, retirement planning, purchases, cash reserves, and other legitimate year-end decisions.
Should a business owner project taxes from revenue or profit?
Generally, tax planning should focus on taxable business income or profit rather than gross revenue. The applicable calculation depends on the entity and tax rules.
Do self-employed business owners generally need estimated taxes?
Yes. The IRS states that people who are in business for themselves generally pay income tax and self-employment tax through estimated payments when sufficient tax is not otherwise withheld. (IRS)
Should estimated payments be recalculated when business profit changes?
Yes. The IRS specifically recommends recalculating estimated taxes when expected earnings change during the year. (IRS)
When do individuals generally need estimated payments?
Individuals—including sole proprietors, partners, and S corporation shareholders—generally may need estimated payments when they expect to owe at least $1,000 at filing, subject to the complete rules. (IRS)
Can withholding help cover business-related individual taxes?
Potentially yes. A taxpayer receiving wages can request additional federal income-tax withholding using Form W-4, which may help cover tax generated by other household income. (IRS)
What information is needed for a 2026 tax projection?
The IRS's 2026 Publication 505 projection framework incorporates expected AGI, deductions, credits, self-employment tax, other taxes, withholding, and estimated payments. (IRS)
Is QBI still available in 2026?
Yes. The IRS's 2026 Publication 505 states that recent legislation made the qualified business income deduction permanent and includes several changes beginning in 2026, subject to the full Section 199A rules. (IRS)
30 Questions Business Owners Should Answer Before Q4
What is YTD revenue?
What is YTD gross profit?
What is YTD net profit?
How does profit compare with 2025?
How does profit compare with budget?
What revenue is expected in Q4?
What expenses are expected in Q4?
What is projected full-year profit?
Are the books reconciled?
Are personal expenses removed?
Are fixed assets current?
What is accounts receivable?
How much AR is overdue?
What is accounts payable?
What debt is outstanding?
What cash does the business actually have?
How much is reserved for taxes?
What federal estimated taxes have been paid?
What state estimates have been paid?
Is the original tax projection still accurate?
Is owner compensation appropriate?
How much has the owner distributed?
Does basis need review?
Are contractor records complete?
Are payroll liabilities current?
Are major equipment purchases planned?
Does retirement-plan funding deserve review?
What does Q1 2027 cash flow look like?
What owner distribution can the business actually afford?
If the year ended today, could I explain exactly how much the business earned, how much tax is projected, and where the cash will come from to pay it?
That final question tells me whether the business is being managed from:
financial information
or merely:
the bank balance.
What to Do Next
Create a Business Owner Q3 Command Dashboard.
PERFORMANCE
Revenue YTD:
$________
Profit YTD:
$________
Projected annual profit:
$________
CASH
Operating cash:
$________
Tax reserve:
$________
Minimum operating reserve:
$________
TAX
Federal paid:
$________
State paid:
$________
Projected annual liability:
$________
Projected remaining liability:
$________
OWNER
Wages:
$________
Distributions:
$________
Retirement contributions:
$________
Q4
Revenue expected:
$________
Expenses expected:
$________
Equipment:
$________
Bonuses:
$________
STATUS
GREEN
Projection current and taxes funded.
YELLOW
Numbers available, but adjustments needed.
RED
Profit, taxes, or cash requirements unknown.
Update it monthly through December.
Final Thought
Business owners do not need another stack of reports they never use.
They need numbers that answer questions.
Not:
“What did QuickBooks say?”
But:
“What does this tell me to do?”
If profit is higher than expected:
Update the tax projection.
If withholding is low:
Adjust.
If estimated payments are behind:
Recalculate.
If cash is weak:
Protect liquidity.
If equipment is needed:
Model the purchase.
If retirement savings are behind:
Review the options.
If distributions are too aggressive:
Slow down.
That is what financial statements are supposed to do.
They help turn:
data
into
decisions.
By September, the first eight months of your business have already given you a tremendous amount of information.
Use it.
Do not run Q4 using January assumptions.
Do not manage taxes from gross revenue.
Do not distribute cash before funding obligations.
Do not purchase assets simply to chase deductions.
Do not wait until filing season to discover how profitable the year actually was.
Instead:
Close the books.
Know the profit.
Project Q4.
Calculate the tax.
Fund the reserve.
Protect the cash.
Then make the strategic move.
Because strong business owners do not merely ask:
“How much did we sell?”
They ask:
“What did we earn, what will we keep, what do we owe, and what should we do next?”
That is how year-to-date numbers become better tax decisions.
Book Your Q3 Business Tax Strategy Consultation
If your business is having a different year than you expected in January—especially if revenue, profit, payroll, investments, or owner distributions have increased—now is the time to run the projection before Q4.
We can review:
Year-to-date P&L;
Projected annual profit;
Estimated taxes;
Owner compensation;
Distributions;
Tax reserves;
QBI;
Retirement-plan opportunities;
Equipment purchases;
Cash flow;
Year-end strategy.
Booking link:
https://api.leadconnectorhq.com/widget/booking/T4UHUjCijCtIB3rwoTDI
Phone: 580-699-1591
Booking your appointment now:
ABOUT THE AUTHOR
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in tax planning and financial strategy, Dr. Cardenas helps individuals and business owners legally reduce taxes, strengthen cash flow, and build lasting wealth and legacy. Learn more at www.thecrgroupllc.com
DISCLOSURE
This article is for educational and informational purposes only and is not intended to serve as personalized legal, tax, or investment advice. Tax laws and regulations change over time and may vary by jurisdiction. You should consult with a qualified tax professional regarding your specific circumstances before implementing any strategy discussed here. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance and investment strategies may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.
