A running tax estimate is only as useful as the rate behind it. Set it up wrong, and you'll either be caught off guard at filing time or set aside more cash than you need to. Here's how to get it right from the start.
illico Book uses your tax rate to estimate what you'll owe as income comes in, updating the figure automatically with every transaction. That estimate is only accurate if the rate reflects what actually applies to your business — which depends on where you're based, how your business is structured, and what kind of income you earn.
Tax rates vary by country, and often by income bracket, business structure, or industry within a country. If you're not certain what rate applies to your situation, this is the one part worth checking with a licensed accountant or your local tax authority — illico Book is a tool to track your finances, not a substitute for tax advice.
Once you know the applicable rate, enter it as a percentage in your account settings. This becomes the baseline used to calculate your running tax estimate across your dashboard and reports.
If your income crosses into a new tax bracket, your business structure changes, or your local tax rate is updated, revisit this setting. An outdated rate will keep producing an estimate that no longer matches reality, even if everything else in your books is accurate.
The running estimate is there to help you plan and set money aside — not to replace an actual tax filing. Use it to avoid surprises throughout the year, and hand your final numbers to your accountant or tax preparer at filing time.
A correctly configured tax rate turns your dashboard into an early-warning system for what you'll owe, instead of a rough guess. Set it once, based on your actual obligations, and revisit it whenever your situation changes.
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