How did your tax season go? If it went anything but smoothly, we’re sorry to hear that.
This time of year, it’s common for us to hear from pest control and lawn care company owners who just had to pony up a large sum on money to the IRS — due April 15.
They’re understandably frustrated. And they don’t want to be caught off guard by their tax bill ever again.
While tax planning is not a perfect science — and ultimately, we do all have to pay some taxes — there are a few things you can do now to avoid an unexpected tax bill in the future.
- Moan and groan if it makes you feel better (and pay your tax bill if you haven’t already).
- Establish better expectations with your tax preparer for next year — or start looking for a new one.
The problem isn’t necessarily the fact that you owe taxes. Owing taxes means you’re making money.
The problem is being surprised by what you owe. It means you and your tax accountant didn’t communicate well and possibly didn’t plan properly.
Proper tax planning for pest and lawn companies
To prevent the same scenario from playing out again next year, ask yourself these questions:
- When is the last time I talked to my tax prepare prior to the end of the year?
- You should be speaking quarterly at a minimum.
- Was he or she proactive in helping me plan for any taxes I might owe?
- If you find out in the fall that you’ll owe taxes for the year, you have time to map out how you’ll cover your bill by April. If you find out April 14, you may be in a bind.
- If I’m not getting what I need from my tax preparer, why am I sticking with him or her?
- Your tax accountant should be a partner in your success and have expertise in the industry — not someone you work with just because it’s who your dad used or the guy you went to high school with.
So what does good tax-planning look like? Here’s a quarter-by-quarter breakdown.
Quarterly tax planning guidelines for pest and lawn companies
To download or print a PDF version of this calendar, click here.
Q1: January – March
Things to Do:
- Close the books on the prior year and prepare to file your taxes.
- Make Q4 estimates tax payments by Jan. 15.
- File 1099s by Jan. 31 for contractors.
- File W-2s by Jan. 31 for employees.
- Work with your tax professional to ensure you capture all deductions and credits.
Things to Consider:
- Compare your financial plans for the new year to the prior year’s tax liability and results.
- Confirm entity type and filing obligations.
Q2: April – June
Things to Do:
- File your annual tax return (April 15 for sole proprietors/partnerships; March 15 for S Corps.).
- Make Q1 estimated tax payment by April 15.
- Make Q2 estimated tax payment by June 15.
Things to Consider:
- Review Q1 financials and revise estimates if needed.
- Consider your fixed asset purchases and compare to prior year.
Q3: July – September
Things to Do:
- Schedule a mid-year tax planning session with your accountant.
- Make Q3 estimated tax payment by Sept. 15.
Things to Consider:
- Run various scenarios for tax planning purposes.
- Evaluate retirement contributions, capital expenditures, charitable giving or bonus payouts if tax advantageous.
Q4: October – December
Things to Do:
- Make Q4 estimated tax payment by Jan. 15, 2026
- Complete any year-end purchases for deductions if they’re warranted. (Don’t spend money just to spend money.)
Things to Consider:
- Defer income and accelerate expenses where it makes sense.
- Compare your income projections to your estimated taxes paid to ensure you’ve met your safe harbor threshold.
To download or print a PDF version of this calendar, click here.
To learn more about our tax offerings, please contact us today.
