I remember the message from Mike.
"I just ran the numbers. I owe $42K in taxes. Payroll is Friday."
Mike runs a $1.2 million landscaping business. Seven trucks. Twenty-two crew members. An owner who assumed profit on the P&L meant cash in the bank.
It didn’t.
His books were reconciled every month. They were accurate. They were complete. But they only told him what had already happened, not what was coming.
That is when he brought us in. Not to fix taxes. Not to catch up. But to make his books work for him.
Working with an experienced CPA Pasadena TX or CPA Houston professional ensures this process isn’t just theory. It actually gets done every month
How Tax-Forward Bookkeeping Works
Month 1: Clarity
We made every dollar clear. We restructured his chart of accounts.
→ Every category and subcategory is clear and aligned with his business needs.
→ Nothing generic. Nothing confusing.
→ It is structured for scalability and flexibility. As the business grows, the books grow with it.
Every transaction now has a purpose, every dollar has a home, and every report tells a story he can actually act on.
No more "miscellaneous" or "ask my accountant."
Mike opens his books now and sees exactly what affects taxable income.
Month 2: Planning
We started planning. Cash flow and tax, together.
→ Every 15th, we close the prior month and build a simple rolling forecast:
→ Book income to taxable income adjustment
→ Cash needed for the next 90 days (payroll, vendors, debt)
→ Tax set-aside based on the forecast, not last year’s surprise
By October, Mike knew exactly how much to move to his tax account each month.
When December arrived, the tax bill was already covered. No scramble. No cuts.
Month 3: Informed Decisions
Once your books are clear and your cash flow is visible, every decision becomes informed.
You can see the tax impact, the cash requirements, and the timing before you commit. It takes the guesswork out of spending and keeps your business running smoothly.
For example, Mike wanted a $28,000 skid-steer before year-end and he was able to walk through his options:
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Buy in December with cash. He would get the full deduction this year, but Q1 cash would be tight.
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Buy in January with cash. Deduction would be next year, but Q1 cash would be safe.
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Buy in December using 0% dealer financing. Full deduction this year. Cash untouched. First payment due in February.
The tools he uses now:
→ Tax-Adjusted P&L. One page. Book vs. taxable income.
→ Cash Forecast. Monthly set-aside amount.
→ Decision Log. Tracks tax impact of bonuses, purchases, draws.
Simple. Visual. Actionable.
The results:
→ No surprise tax bills.
→ Payroll and bonuses paid on time.
→ Books closed by the 15th every month.
You do not need more software. You do not need longer hours. You need books that look forward.
Tax-forward bookkeeping turns accounting from a rearview mirror into a dashboard.
Want the exact 90-day plan we used with Mike? Contact us here : CPA firm Houston
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