Quarterly Tax Prep: A Simple Guide for Entrepreneurs

Quarterly taxes don’t have to be confusing—or stressful. If you’re self-employed or running a small business, chances are you owe estimated taxes every few months. And with the right systems in place, prepping for them doesn’t have to be a last-minute panic.

Here’s a simple breakdown of what you need to know:

📅 What Are Quarterly Estimated Taxes?

The IRS expects business owners to pay taxes on income as it’s earned. That means instead of paying once a year, you submit estimated payments four times annually—typically in April, June, September, and January.

You’re likely required to pay if:

• You expect to owe $1,000+ in taxes for the year

• You’re a sole proprietor, single-member LLC, freelancer, or contractor

💸 How Do You Calculate What You Owe?

The safest bet is to work with your bookkeeper or tax professional. But here’s the general idea:

Quarterly Tax Formula: (Total Expected Income - Business Deductions) x Tax Rate ÷ 4

Many entrepreneurs set aside 25–30% of net income for taxes.

Tip: SMP clients use our Quarterly Tax Payment Tracker to stay organized and ready.

📋 What Should You Have Ready Each Quarter?

Here’s what we recommend tracking:

• Year-to-date income and expenses

• Total net income per quarter

• Any major changes that impact your tax rate (new hires, large expenses, etc.)

• Amounts already paid in prior quarters

🌟 SMP Pro Tip: Automate It

We help clients set up monthly journal entries and separate savings accounts for taxes. This way, your quarterly payments are already funded—and filing takes minutes, not hours.

No More Guesswork at Tax Time

Quarterly tax prep doesn’t have to feel overwhelming. At SMP Financial Services, we simplify the process so you can stay ahead, not scramble.

🔗 Book a free discovery call at www.smpfinance.com 📧 Or email us at info@smpfinance.com

From Numbers to Know-How—We’ve Got You.