10/15/2026
"I just pick a number."
A business owner once told me that about their quarterly estimated tax payments to the IRS.. Their IT services firm has been running over 20 years.
The operating account shows about $285k.
"That looks like plenty", so the payment gets written from whatever feels safe.
Some quarters they guess high and starve the account.
Some quarters they guess low and April collects the difference.
The problem? THe guess is the whole system.
Zoom out and realize three pieces connect here:
The profit.
As an S-corp, the company's profit lands on the owner's personal return whether or not it ever leaves the business bank account. Last year that profit was about $260k.
The tax.
Federal income tax on that profit was about $70k. It's the owner's personal bill, paid in four estimates through the year, and, remember, it exists whether or not you take money out.
The cash.
The tax bill is only one claim on that balance. Payroll and bills have claims too.
After we finished our coffee, the owner wanted a new system.
1) Start with the balance.
2) Take out the tax.
3) Then take out what payroll and bills need.
What's left is your room to move.
REMINDER: It's just math.
These three pieces can fit any structure and any year. Only the line items change.
If you've been leaving cash in the account because you don't know what's safe to pull, this math helps guide you.
If you already send a monthly transfer to the household account, just be sure to set it after the tax bill is counted.
The larger problem?
Those three pieces rarely sit on one page. Seeing the profit, tax and cash together is the first step.
Know your safe number before the money leaves the business account.
https://www.second-comma.com/asset-map?utm_source=facebook&utm_medium=social&utm_campaign=axis&utm_content=c73
