Mindset, Grit & Failure
How do taxes paid in arrears hurt small business cash flow?
Answered independently in 1 episodes. Every line below is verbatim from the transcript, timestamped to the moment it was said.
The short answer
What the archive says
01Taxes are paid in arrears, so owners are writing checks on a strong 2022 out of a 2023 or 2024 that is 20 to 40 percent worse, and a loss in the down year can't be used until later. source →
In their words
What was actually said
The second problem is, let's say in 2022, you made a million bucks, $22.3, you've got to pay taxes on that million bucks. Taxes are paid in a rear in 2023 in April, April, April, July, when all it is, you decide to pay taxes that has a business owner to pay on when you extend it. You're having a year that is 20, 30, 40% less as good as cash flow as it was in 2022.
The episodes