Profit First Series #4: Save It! What Is a Tax Account?

Why is Tax Account my favorite in the Profit First system?

Because it forces business owners to save for taxes. Often times, tax time is a stress filled couple of months because of a lack of tax funds.

The tax account helps owners put a percentage into the account each month, saving all year for their estimated and year-end taxes. Then, when tax time rolls around, the business has already saved up for their bill. This means the business just paid their taxes for them! Voila!