If you start out using the Estimated Quarterly Tax sheet at the beginning of the new year, you won’t see much useful data for your estimated payments until your expenses and income starts flowing into the Transactions sheet. To help you plan ahead you can use the manual adjustment areas of the Estimated Tax sheet to project how much you should anticipate paying in taxes for the year for your small business.

To create a forecast for the year

  1. Unhide the manual adjustment cells by clicking the + sign next to row 28.
  2. Enter your expected income and expenses into the light green cells in the Business Income and Business Expense area for each quarter. 
  3. Optionally, enter home office and business mileage quarterly projections for the year. 
  4. Review your estimated tax owed information.

Once you’ve added projection figures for each quarter in the adjustments area of the Estimated Tax sheet you’ll start to see estimated payments per quarter based on your inputs. 

Maintaining Projections with Transaction Actuals

If you choose to project your net profit at the beginning of the year an important maintenance step with the Estimated Tax sheet is to update your projections for each quarter as your transactions actuals come in for income and expense. This is important because the net profit is calculated by adding your manual adjustments to your actuals so if you never updated the manual adjustments you’d be double counting in your net profit. 

When you get to the end of the quarter update the manual adjustment for income and expenses to only include manual adjustments and remove the projection data for the quarter. Then you’ll see your estimated tax owed for the quarter in the Estimated Tax Due section. 

Tip: use the scratchpad/notes area to keep track of items that might need to be factored in to your manual adjustments or to record your projection figures. 

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