Tax day!
Just hearing those words can trigger stress, frustration, and that sinking feeling of loss. But what if I told you it doesn’t have to be that way? What if April 15th could actually feel like a win? A celebration of how you’ve mastered your cash flow and financial game?
Why tax day hurts so much
Most entrepreneurs dread taxes because they feel like something is being taken from them.
You work hard, build your business, and then, boom! A big chunk of your money disappears to taxes. It’s easy to see why this feels like a gut punch.
Humans are wired to hate loss. We feel the pain of losing money far more than we feel the joy of gaining it. So, when April 15 rolls around and you’re scrambling to figure out how to pay your tax bill, it’s no wonder it feels awful.
The shift that changes everything
The key to making tax day painless, and dare I say even enjoyable, is to stop treating taxes as a loss. Instead, you need to reframe them as a planned expense that you’ve already accounted for. The best way to do this? Set up a tax account at your bank.
By automatically setting aside money for taxes throughout the year, you eliminate the “taken from me” feeling. You don’t lose money; you’ve already planned for it. It’s no different than budgeting for payroll, rent, or any other business expense.
The simple solution – open a tax account and transform dread into dollars
- Open a separate bank account dedicated solely to taxes. This should be separate from your main business operating account.
- Every time you receive revenue, allocate a percentage to this tax account. (In Profit First, I recommend setting aside 15% to 30%, depending on your profit margins and tax bracket.)
- Do NOT touch this money. It’s not yours to spend. It’s already earmarked for taxes.
- When tax day comes, you’re ready. No scrambling, no stress, no last-minute panic. You just cut the check and move on with your life.
The “Figure It Out Later” trap
Most business owners operate under a dangerous assumption: “I’ll figure it out in April.”
That’s the worst possible approach. It leads to:
- Surprise tax bills that drain your cash reserves.
- Last-minute stress and financial chaos.
- Risk of penalties and interest if you can’t pay on time.
- A scarcity mindset that keeps you feeling like you’re always behind.
When you proactively set aside money for taxes, you eliminate all of these problems. You shift from reacting to taxes to owning them.
Digging Deeper: Master Your Finances
If you want to take full control of your financial future, I highly recommend checking out these resources:
- Profit First (Chapter 4, pages 77–92): Learn how the Tax Account setup will change your relationship with April 15 forever.
- Fix This Next (Chapter 4, pages 90–119): Build financial predictability beyond taxes.
- The Pumpkin Plan (Chapter 6, pages 95–110): Tie your profits directly to serving your best customers.
- Clockwork (Chapter 11, pages 200–226): Ensure your business runs smoothly—even during tax season—so you can take a vacation without worry.
My final thought
As David Campbell, cofounder of Saks Fifth Avenue, said:
“Discipline is remembering what you want.”
If you want financial freedom, if you want to eliminate stress, and if you want to keep more of your money, then discipline in your cash flow is key. Tax day doesn’t have to be painful. With a simple shift in how you manage your money, it can become your victory lap.
You’ve got this. And if you haven’t set up your tax account yet, consider this your sign to make it happen today.
Because entrepreneurs? We’re kinda superheroes. And superheroes don’t get knocked down by taxes.
-Mike