Advance Tax
Estimated tax payments made before the annual filing deadline, required when expected tax liability exceeds a threshold amount.
What is Advance Tax?
Advance tax (estimated tax in the US) is periodic prepayment of expected annual tax liability. Businesses and individuals pay in installments (quarterly in many jurisdictions) based on projected income.
Missing advance tax deadlines triggers interest and penalties. Overpaying ties up cash; underpaying creates year-end surprises.
Advance tax is a cash event on specific calendar dates, often large relative to monthly burn for profitable growing businesses.
Why it matters
Quarterly tax payments can equal weeks of runway. Scheduling them in your cash forecast reveals shortfalls before due dates, not after penalties accrue.
True Cash Position should deduct upcoming advance tax from deployable cash.
How RunwayCal helps
RunwayCal models advance tax and estimated payments as scheduled outflows with impact on True Cash and 60-day cash forecasts.
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Never miss an advance tax deadline
Schedule advance tax payments in your cash forecast and see impact on True Cash before due dates.
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