Back in June, you paid your second quarterly estimate based on a guess. Nobody calls it that, but that’s what it was. A projection of how the year would go, made before the busiest stretch of the year happened.
Well, the summer happened. And now Q3 estimated taxes are due September 15. The question almost nobody asks before paying: is the June number still right?
Why your June number might be wrong now
Quarterly estimates are a moving target. They’re supposed to track what you’re actually earning, and for a Montana trade business, the gap between “what I figured in spring” and “what actually happened by Labor Day” can be wide.
Take a roofing company. A couple of hail storms, a busy re-roof season, a big commercial job that landed. Suddenly the year is running well ahead of last year. If the owner keeps paying the same estimate set in June, the business may be building a larger bill for next April.
It cuts the other way too. Slow summer, a crew short, a job that fell through. Sending the same payment could mean mailing off cash the business will need in February.
The 15-minute check before you pay
Here’s what I’d do this week, and it only works if your books are reasonably current.
Pull your year-to-date profit. Not revenue, profit. Compare it to what you assumed when you set the June payment. If you’re running meaningfully ahead, your Q3 payment may need to go up. If you’re running behind, it may need to come down. Your tax professional can help you land on the right figure for your situation.
If you can’t pull year-to-date profit because the books are months behind, that’s the real finding. You’re not making a tax decision at that point. You’re guessing twice.
If you need the basics on how quarterly payments work, I covered that in June.
September 15 matters twice this year
September 15 is also the extended filing deadline for calendar-year S corporations and partnerships. If your business filed an extension back in March, that return is due now, not in October. If your tax professional has been waiting on documents from you, this is the week to send them.
Montana winter is the reason to get this right
Here’s why I push on this harder in September than any other month. A Montana roofing company might have ten good weeks left before the season winds down. The money in the account right now has to cover the estimate, the last equipment payments of the year, and however many quiet weeks winter decides to serve up.
Overpaying in September and running short in February is a bad trade. So is underpaying and getting a surprise bill in April, right when you’re trying to gear up for spring.
The estimate isn’t a chore to get past. It’s one of the few moments the calendar forces you to look at your real numbers. Use it.
Want a second set of eyes before you pay?
Bring us your year-to-date numbers and we’ll help you understand whether your Q3 payment may need to move. If the books need catching up first, no judgment. That’s fixable.
The consultation is free. Call (406) 609-4567 or reach out here.