Work at Home Questions

Whenever I cut myself a check from the business, the next entry is a "tax dummy" for the amount that will be due to Fed and State for that check. That way, the payment disappears from the checkbook balance and the money is there when it's time to pay the quarterly.

That's basically the same thing that I do, but I do it when I submit the invoice. That way, when I analyze my monthly income and expenses, I get a real idea if I made a profit. No clients have ever not paid me, although sometimes they take their merry old time. Each month, I also add to the dummy account my property taxes that are effective for that month.

If everyone were self employed, or at least if they didn't have taxes withheld, they'd be very conservative very fast. Writing that check to the IRS every quarter is quite painful!

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