Five Questions Your Accountant Should Be Asking You (And Probably Isn't)

An owner did everything right, paid four estimated tax payments on time, and still owed $15,000 in April plus a penalty. Ralph Estep Jr., The Content Creator's Accountant, walks through the five questions that would have caught it. Using a $1.6 million contracting business as the example, Ralph shows why the safe harbor rule changes from 100% to 110% once adjusted gross income passes $150,000, why safe harbor stops the penalty but not the bill, and how to find your real profit margin after paying yourself a fair wage. In this episode: The 110% safe harbor rule and the $4,200 shortfall Why the April bill still hits even when you avoid the penalty Real margin: why 10% pre-tax after paying yourself is the benchmark What a $10,000 purchase really costs after the tax benefit The three-year profit question almost no accountant asks Mentioned in this episode: Simple Numbers, Straight Talk, Big Profits by Greg Crabtree The E-Myth Revisited by Michael Gerber Book a $199 year-end business review: contentcreatorsaccountant.com/review Learn more about the show: contentcreatorsaccountant.com This episode is general information, not advice for your specific tax return. Have a question for Ralph? Send it in, and follow the show for next week's episode. #ralphestepjr