The Easiest Way to Stay on Top of Your Tax Payments

If you’re managing all your business income, expenses, and tax obligations from one bank account, you’re making a critical mistake—and you’re not alone.

• Mixing tax money with your business cash is a common, yet costly mistake.
• It creates cash-flow shortages, last-minute tax scrambling, and unnecessary financial stress.

How a $2M Business Nearly Collapsed from a Simple Tax Mistake

I recently spoke with my team a about a client facing this exact issue.

The client is wildly successful—growing at an incredible pace scaling from $0 revenue to $2M+ in under three years. But despite their rapid growth, they were experiencing a severe cash shortage—constantly struggling to cover tax payments when they came due.

Why?

Because they had just one business bank account. Their income, expenses, GST, and PAYE were all mixed together, making it nearly impossible to track what belonged to them versus what was owed to the Inland Revenue.

The fix was surprisingly simple: open three additional bank accounts—one for GST, one for PAYE, and one for income tax.

The Problem With Just One Bank Account

I’ve seen this exact issue with countless businesses—and I used to make the same mistake myself. Early in my journey, I managed everything from a single account, and tax payments always felt like a surprise.

Most business owners do this without realizing how much stress it creates.

They weren’t struggling because they weren’t smart (far from it); they simply hadn’t realized how much of a difference this one simple fix could make.

And they’re not alone—so many business owners overlook this easy system that could save them thousands.

The Easiest Way to Stay on Top of Your Tax Payments

When you mix and lump everything—income, expenses, and tax obligations into a single bank account, it’s then way too easy to accidentally spend money that isn’t really yours (like GST or PAYE that you’re just collecting for the government).

By keeping your tax money separate, you remove the risk of spending what’s not yours—and avoid the cash flow panic when tax time rolls around.

Setting Up a Tax Bank Account: How to Do It in 5 Minutes

These days, setting up a new bank account is incredibly easy. You don’t even have to visit a branch. Just jump on your banking app, do it online, or make a quick phone call.

Here’s how to make this work for you:

Step 1: Open a dedicated tax bank account – A simple savings or business account works fine.

Step 2: Automate your tax savings – Every time you get paid, transfer a set percentage into the tax account. Think of it like “paying yourself first” but for tax.

Step 3: Keep GST & PAYE separate – Remember, this isn’t your money—it belongs to the government. Treat it as off-limits.

Step 4: Use the account only for tax payments – When tax deadlines come up, you’ll have the money ready and waiting. No stress, no surprises.

The Instant Benefits of This Strategy

• No more tax-time panic – You’ll always have enough set aside, so tax bills don’t wreck your cash flow.
• No accidental spending – When tax money is separate, it’s out of sight, out of mind (and out of your spending reach).
• Simple cash flow management – You’ll know exactly how much money is truly yours.
• Fewer surprises – Tax bills won’t catch you off guard anymore.

The Easiest Tax Fix You’ll Ever Make

Too many business owners get caught in the tax-time scramble, simply because they don’t have a system in place. But this tiny habit—separating your tax funds—can completely change the game.

It takes five minutes to set up but can save you thousands in financial stress. So, do yourself a favor—open that separate tax account today. Your future self will thank you.

Have you already tried this? How many bank accounts do you have?

Drop a comment below and let me know how it’s worked for you.

– Baqir Hussain, FCCA

Director, Finex Chartered Certified Accountants