I think that one thing most creative entrepreneurs will agree on is that dealing with finances & taxes is probably the least fun part of running a small business. For me personally, I love photography and I love client relations, but when it comes to the knitty-gritty of the numbers, my brain just automatically starts to swirl. Who else feels like this when it comes to business finances???
One area where I struggled most was with putting money aside for taxes. As a small business owner, I handle 100% of the income I bring in… but that doesn’t mean I get to keep it all. Unlike getting a paycheck from a business where taxes are automatically deducted, I’m responsible for putting a portion of incoming money away for taxes. My issue was that I felt like when I looked at my bank account, I never really had a strong concept of how much of that money was actually mine to spend and how much should I have set aside for taxes. I had a business checking & business savings account, but to be honest– I was not great about diligently transferring money into that savings account to save for taxes. Enter: the Qapital app. Exit: the days of confusion & anxiety over saving for taxes.
I can’t remember where I first learned about Qapital, but it has been a #gamechanger. It’s an app that automatically withdraws money from your account and puts it into an external savings account. Now I know your first question is…. how much does it cost? … Nothing, it’s FREE! No fees to set up or transfer funds. There are lots of different ways you can set up and use Qapital for both personal and business savings, but for the sake of this post I’m just going to stick to how I use it to save for taxes specifically.
Qapital allows you to set up “Rules” for savings, which basically functions under a “if this, then that” premise. The rule that CHANGED. MY. BUSINESS. (and lowered my stress) is the Freelancer Rule. This means that if a deposit comes into my business checking account, 30% is automatically deducted and put into my Qapital account. That means that I can automatically save for taxes, and that money is out of sight, out of mind. With the use of Qapital, I know that all of my money in my business checking account is mine to use freely, because I know the money I’ll need come tax time is stored in my Qapital account. In reverse, it means that any money I have in my Qapital account is not to be used for anything besides taxes (it has eliminated the temptation for me to “borrow” from my savings account… I know we’ve all done that!). So when it comes time to pay my taxes, I simply transfer that money to my bank account and make the IRS payment.
Make 2018 the year you stop stressing about saving for taxes. Let Qapital do the work for you… If you use THIS link, you’ll have $5 waiting for you to start you off when you open your account. Happy savings!