Unexpected tax bills can be stressful, but there are practical steps you can take to handle the current situation and prevent surprises in the future. Creating proper financial systems and working proactively with your CPA will help your therapy practice maintain financial stability throughout the year.
• Options for handling an unexpected tax bill include filing extensions or setting up payment plans with the IRS
• Take what you owed this year, divide it across remaining months, and increase withholdings accordingly
• Consider life events that may have affected your taxes (marriage, children leaving home, new income sources)
• Establish separate bank accounts for different purposes, including a dedicated tax account
• Increase the percentage of income allocated to taxes if you've been underpaying
• Meet with your CPA at least twice yearly - during tax season and again mid-year
• Work with financial professionals who can help establish proper systems and infrastructure
If you need help creating financial systems for your practice, there's a link in the description to talk to our team members and get assistance in that area.
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*Intro/outro song credit:
King Around Here by Alex Grohl