--- title: "The Power of Tax Planning: How Business Owners Can Conserve Cash Effectively" description: Tax Planning So Business Owners Can Conserve Cash Effectively image: https://blog.seghettiwaxler.com/hubfs/shutterstock_1670957740.jpg --- [Skip to content](https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively#main-content) [Contact us](https://www.seghettiwaxler.com/contact) ![](https://blog.seghettiwaxler.com/hs-fs/hubfs/bayshore-advisors-logo-color-horizontal-1.png?width=275&height=87&name=bayshore-advisors-logo-color-horizontal-1.png) Open main navigation Close main navigation - [Contact us](https://www.seghettiwaxler.com/contact) Sep 19, 2023 1:42:26 PM # The Power of Tax Planning: How Business Owners Can Conserve Cash Effectively [Thomas Castillo, CPA](https://blog.seghettiwaxler.com/news-updates/author/thomas-castillo-cpa) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively) [Twitter icon](https://twitter.com/intent/tweet?url=https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively) [envelope icon](mailto:?body=https://blog.seghettiwaxler.com/news-updates/the-power-of-tax-planning-how-business-owners-can-conserve-cash-effectively) As business owners, cash is the lifeblood that keeps your operations running smoothly. While generating revenue is vital, conserving cash through effective financial management is equally crucial, especially in uncertain times. One of the most powerful tools in your financial arsenal is tax planning. At Seghetti Waxler, we specialize in helping business owners like you make informed decisions that optimize cash flow, and today, we’re focusing on how you can conserve cash through tax planning. Here's how: ## Optimizing Your Tax Situation The tax code continues to get more complex. However, it's filled with opportunities for deductions, credits, and other incentives designed to encourage business growth and innovation. By identifying these potential savings, you can significantly reduce your tax burden and thereby conserve cash. ## Reduce Your Tax Estimates When you operate a business, you're generally required to make estimated tax payments throughout the year. These estimates were postponed for most California residents through October 16th due to the floods. These estimates are typically based on your prior year income. However, many businesses may be overpaying if their businesses have slowed, leading to cash outflows that could have otherwise been invested back into the business. Now is a great time to review your current year income and reduce unnecessary estimates by having us perform a tax projection. ## Maximize Pass-Through-Entity (PTE) Tax Payments If your business is structured as a pass-through entity (like an S Corporation or partnership), the business income "passes through" to individual tax returns, where it's subject to individual income tax rates. Many states, including California, have designed laws that allow for pass-through entities to "work around" state income tax deduction limitations ($10,000) and higher standard deduction limits that were created as a result of the 2018 Tax Cuts and Jobs Act. Simply put, PTE payments create deductions where there otherwise wouldn't be. To qualify in California, your business must pay the greater of $1,000 in estimates (1st time) or 50% of your prior year PTE by 10/16/2023 (extended from usual June 15th due date). Contact our office to ensure you're eligible and optimize your tax savings by paying PTE payments before year end. ## Tax Planning with Seghetti Waxler Effective tax planning is not a one-time event but an ongoing process. At Seghetti Waxler, we provide more than just tax advice; we offer comprehensive financial strategies tailored to your business needs. Our seasoned tax advisors can help you navigate the complex tax landscape, allowing you to focus on what you do best—running your business. So, before you find yourself constrained by cash flow or burdened by hefty tax payments, reach out to us. Together, we can develop a tax strategy that not only meets your business needs but also optimizes your cash position for long-term success. 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[Read more](https://blog.seghettiwaxler.com/news-updates/introducing-jessilyn-wells-and-lori-castillo) [![](https://blog.seghettiwaxler.com/hubfs/Seghetti%20Social%20Media.jfif)](https://blog.seghettiwaxler.com/news-updates/news-updates) [tax](https://blog.seghettiwaxler.com/news-updates/tag/tax), [estimated tax](https://blog.seghettiwaxler.com/news-updates/tag/estimated-tax) ## [News & Updates](https://blog.seghettiwaxler.com/news-updates/news-updates) [Thomas Castillo, CPA](https://blog.seghettiwaxler.com/news-updates/author/thomas-castillo-cpa) Jan 10, 2023 8:47:26 AM Q4 2022 Estimate Due January 17, 2023 Your Federal and California 4th quarter estimate is due... 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