Tax Flow Friday.
One short check, every Friday. In about 15 to 20 minutes you see where this week's money went, whether your tax reserve is keeping up, and what to fix next week.
Four days on the jobs. Fifteen to twenty minutes on the numbers.
Eight checks. Fifteen to twenty minutes.
Same list, same order, every week. To start, all you need is your bank accounts, your books and the scorecard.
- Deposits this week, split 25/10/65Add up what came in. Move 25% to your tax reserve and 10% to your profit reserve, and leave 65% for operating.
- Balances in each accountLook at the tax reserve, the profit reserve and operating. Does each balance make sense for where you are in the year?
- Quarterly estimate on trackIs the tax reserve keeping pace with your next estimated payment? Quarterly estimates are part of the job.
- Owner pay on scheduleDid you pay yourself the planned amount on the planned day? Owner pay comes out of the 65%.
- Open invoices / ARWho owes you, how much, and for how long? Pick the ones you'll follow up on Monday.
- Job costs vs. bidOn each active job, compare what you've spent so far with what you bid. Catch an overrun while the job is still open.
- Bids out and wonHow many bids are out, and how many did you win this week? That's next month's work.
- One thing to fix next weekWrite down one thing. Not five. Next Friday, start by checking it.
25 / 10 / 65: every deposit gets a job.
Friday is when the 25/10/65 method actually happens. Each week's deposits are split three ways, so the money for taxes and profit is set aside before it gets spent.
Tax reserve
Set aside for the taxes the business will owe. The method uses a 20–25% tax set-aside; your number gets set with your CPA based on your situation.
Profit reserve
Money the business keeps. It's a cushion first, and it gives you options later.
Operating
Runs the business: materials, labor, overhead, and your owner pay. Owner pay comes out of the 65%, not out of the reserves.
Try it with this week's deposits
Illustration only. Your tax set-aside may sit anywhere in the 20–25% range depending on your situation. Confirm your numbers with your CPA.
In Washington?
Washington doesn't currently tax most people's wages or business income. Federal taxes still apply, which is why the tax reserve still matters.
Quarterly estimates are part of the job.
When the tax reserve fills every Friday, the quarterly estimate is a transfer, not a scramble.
Weekly beats yearly.
Once a year, all you can do is find out how the year went. Once a week, you can still change how it goes.
Once a year
- You find out in April.
- The tax bill lands all at once.
- Draws came out whenever there was cash.
- A job that lost money is already finished.
- Fixes wait until next year.
Every Friday
- You see it within a week.
- Taxes are set aside as the money comes in.
- Owner pay follows a schedule.
- Overruns get caught while the job is still open.
- One fix a week, every week.
Why Friday?
The week's work is done and Monday's jobs haven't started. It's a natural place to close out the week.
Why 15–20 minutes?
Short enough to actually happen every week. The point is the habit, not a monthly marathon.
Why the same list?
When you check the same things every week, you start to notice when something's off.
The habit, the workbooks, the sessions.
The habit
Tax Flow Friday. You, every week, 15–20 minutes, the same checklist.
The workbooks
Tax Flow, Pay Flow and Deduction Flow for Contractors. They set the numbers you check: your tax plan, owner pay, job costs, pricing and records.
The weekly review
On the paid levels: a weekly Tax Flow email, a review of your numbers, and a weekly video walkthrough or a 30-minute Zoom with Steve's team.
Get the Tax Flow Friday Scorecard.
A one-page sheet for your Friday check: your 25/10/65 split, account balances, quarterly estimate, owner pay, open invoices, job costs, bids, and one thing to fix next week.
Print it, keep it by the desk, and fill it in every Friday. It's the same sheet the program uses.
Get the free scorecard
One page. Print it, fill it in every Friday, and bring it to your call.
Book a call with Steve
Pick a time that works for you. No cost and no obligation.