Skip to main content

Prepare for tax season with a HoneyBook Balance tax savings bucket

Automatically save a portion of each payment with HoneyBook Balance’s tax savings bucket to stay ready for income tax season

Updated over 2 weeks ago

Get ready for tax time with less stress and more confidence. With HoneyBook Balance’s tax savings bucket, you can automatically set aside a portion of every client payment to help cover your income taxes—keeping you organized and financially prepared.


What is a tax savings bucket?

The HoneyBook Balance tax savings bucket is a dedicated space to save specifically for your income tax bill. It works like a regular savings bucket but is designed to help you:

  • Proactively plan for taxes

  • Minimize financial surprises at tax time

  • Build financial security through consistent savings

How it works

You have complete control over how your tax savings bucket operates:

  • Automatically save a set percentage from every client payment, ideally matching your estimated income tax rate

  • Pause savings temporarily while keeping the funds in the bucket

  • Transfer funds to your available balance anytime, with or without stopping future savings

  • Restart saving whenever you’re ready

This flexible setup makes it easy to stay on top of your tax obligations without the guesswork.


Set up a tax savings bucket

You have control over how much of your payments goes into this savings bucket, and can update it or withdraw from it at any time.

  1. From the navigation menu, select Finance > Balance

  2. Under "Savings buckets," select CREATE BUCKET

  3. Name your bucket

  4. Enter a percentage

    1. Work with your financial advisor to decide what this percentage should be

  5. Select CREATE BUCKET

How transactions appear after creating a bucket

The transaction amounts in your transactions table will show:

  • The amounts after processing fees are subtracted

  • The amounts before any savings bucket amounts are subtracted

For example, if you set up a savings bucket with a rate at 10%, receive a payment for $150, have 3% in processing fees for the transaction, and have no other savings buckets set up.

  • Your Transactions table amount would show $145.50 for that transaction

    • $150 minus $4.50 (the 3% processing fee)

  • $14.55 would be added to your tax savings bucket

    • 10% of the transaction amount (your smart tax rate) after processing fees

  • $130.95 would be added to your available balance

    • The transaction amount after processing fees and tax savings bucket withholdings

You can view exactly how much of each transaction went to your tax savings bucket by selecting that transaction from your transactions table.


Manage your tax savings bucket

You can manually change your savings percentage, stop or resume saving, or transfer funds into and out of this bucket.

  1. From the navigation menu, select Finance > Balance

  2. Under "Savings buckets," find your bucket, then select the triple-dot icon > Edit

    1. From here, make changes to your bucket

    2. Use the following "Bucket actions" table to learn more about your options

  3. Select SAVE CHANGES

Bucket actions

📣 Note

  • If you decide to move your tax savings bucket's funds to your available balance, the entire amount in the bucket will be transferred. You can’t set a custom amount to be transferred.

  • Deciding when to withdraw funds from your tax savings bucket is a topic you should discuss with your financial advisor when preparing to tackle your tax bill

Bucket action

Description

Change savings %

Increase or decrease a bucket’s savings percentage.

Stop saving for taxes


Resume tax savings

Temporarily stop saving and keep the money in your tax bucket, or resume saving if you previously paused.

Move to available balance

Move the entire amount from this bucket to your available balance and either keep or stop saving.

You can only transfer the entire amount held in the bucket to your available. Partial transfers aren’t currently available.

If you stop saving, this bucket will be deleted, though you can start again with a new bucket at any time.

Transfer to

Transfer funds into this bucket from your available balance. You can transfer up to your total available balance.


Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!

HoneyBook is a software company, not a bank. Banking services are provided by Lincoln Savings Bank, Member FDIC. HoneyBook Visa Debit cards are issued by Lincoln Savings Bank, Member FDIC. HoneyBook is not FDIC insured. FDIC insurance only covers the failure of an insured bank.