ABCDEFGHIJKLMNOPQRSTUVWXYZAA
1
AVL Growth Partners
2
Estimated Tax Tracker Model
3
November 2018
4
5
Est Tax 9/15Est Tax 1/15
6
July-AAug-ASep-EOct-ENov-EDec-EJan-E
7
Income Statement (Example)
Key Points:
8
Revenue
743,028698,239788,923804,000808,000811,000815,000
1) Safe Harbor Lessons Learned
9
COGS495,032482,033503,991509,333505,000506,875509,375
2) Sometimes hard to "set aside" especially when the business needs the working capital!
10
Gross Profit
247,996216,206284,932294,667303,000304,125305,625
3) Forecasting the Tax Distribution on the Balance Sheet so it shows "cash leaving the business"
11
Operating Expenses
173,495194,337189,330184,930185,000185,000185,000
12
Taxable Income
74,50121,86995,602109,737118,000119,125120,625
13
14
PERSONAL TAX TRACKER
15
Payments Made to Owner
16
Guaranted Payments
15,00015,00015,00015,00015,00015,00015,000<<< Note: Owners often neglect to remember that no tax (or witholdings) has been paid on the Guaranteed Payments. So, owners forget to "set aside" ~40% of these guaranteed payments to pay tax on their personal taxes. Some companies will also do an "add on" distribution for the guaranteed payments, but this does not necessarily "solve the issue" in terms of forecasting cash for the business.
17
40%
Tax Distribution for LLC Income
76,789138,745
18
0%
Tax Distribution for Guar Pmts
0
19
20
Tax Liability Tracker ("What I Owe")
21
40%
Beg Liability Bal
0 35,800 50,548 049,895103,095156,745
22
+ Guar Pmt Tax6,000 6,000 6,000 6,000 6,000 6,000 6,000
23
+ LLC Income Tax29,800 8,748 38,241 43,895 47,200 47,650 48,250
24
- IRS Pmts0 0 (94,789)0 0 0 (156,745)<<< Note: You can pay "safe harbor" to defer paying taxes until year-end, but don't be fooled that you're not going to have to have cash to pay it later. This tracker will allow you to keep an eye on what's going to need to be paid in the future if you're on Safe Harbor. Enter your "safe harbor" payments here instead of the full 40% of current estimates.
25
End Liability Bal
35,800 50,548 0 49,895 103,095 156,745 54,250
26
27
Personal Tax Savings "Escrow" ("What I've Saved")
28
Beg Savings
0 6,000 12,000 0 6,000 12,000 18,000
29
40%Set Aside / Save6,000 6,000 6,000 6,000 6,000 6,000 6,000
30
Tax Distribution76,789 138,745
31
Payments Made0 0 (94,789)0 0 0 (156,745)
32
End Savings Balance
6,000 12,000 0 6,000 12,000 18,000 6,000
33
34
Balance Sheet (Example)
July-AAug-ASep-EOct-ENov-EDec-EJan-E
35
Cash100,000 88,370 97,323 187,060 271,920 358,545 310,925
36
A/R186,501 208,500 210,500 225,000 235,000 250,000 272,000
37
Other Assets
42,000 48,000 46,000 46,000 60,000 70,000 70,000
38
Total Assets328,501 344,870 353,823 458,060 566,920 678,545 652,925
39
A/P68,000 72,000 73,640 73,640 76,000 80,000 80,000
40
Other Liabilities
46,000 42,000 36,000 36,000 30,000 24,000 22,000
41
Debt225,000 219,500 214,000 208,500 203,000 197,500 192,000
42
Equity
43
Contributions50,000 50,000 50,000 50,000 50,000 50,000 50,000
44
Distributions(250,000)(250,000)(326,789)(326,789)(326,789)(326,789)(465,534)<<< Note: By effectively forecasting the tax distributions in an LLC, you are creating a much stronger and more accurate view of the cash profile of the business.
45
Retained Earnings115,000 115,000 115,000 115,000 115,000 115,000 115,000
46
Net Income74,501 96,370 191,972 301,709 419,709 538,834 659,459
47
Total Liab & Equity328,501 344,870 353,823 458,060 566,920 678,545 652,925
48
0 0 0 0 0 0 0
49
Cash Flow Stmt
50
Net Income
74,50121,86995,602109,737118,000119,125120,625
51
∆ in A/R
(21,999)(2,000)(14,500)(10,000)(15,000)(22,000)
52
∆ in Other Assets
(6,000)2,000 0 (14,000)(10,000)0
53
∆ in AP
4,000 1,640 0 2,360 4,000 0
54
∆ in Other Liabilities
(4,000)(6,000)0 (6,000)(6,000)(2,000)
55
∆ in Debt
(5,500)(5,500)(5,500)(5,500)(5,500)(5,500)
56
∆ in Equity
0 (76,789)0 0 0 (138,745)
57
Net Change in Cash-11,6308,95389,73784,86086,625-47,620
58
Beg Cash Balance100,00088,37097,323187,060271,920358,545
59
End Cash Balance100,000 88,37097,323187,060271,920358,545310,925
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100