Preparing and filing your tax returns in time to meet their deadlines is critical to maximizing your company’s profit, avoiding costly penalties and maintaining your peace of mind.
Many small business owners don’t fully recognize the impact of failing to meet tax requirements. But, make no mistake: Fulfilling these is essential, and doing so successfully requires you to rethink how you prepare for your due dates.
Below, find the four action items you must address in order to meet your tax deadlines.
There’s no way to accurately file your small business’s tax return without the right information. If you need to spend significant time organizing your records and ensuring that they’re up to date, it’s much more difficult to prepare your return in time.
If you keep your records up to date throughout the year, however, preparing your taxes becomes far less stressful and time-consuming for both you and your tax preparer. In addition, your current tax records help you make more informed business decisions, as they give you a better understanding of the corresponding tax implications.
Whether you are supported by a tax preparer or handle your taxes alone, you need to look a quarter ahead to know:
Sound tax preparation is a year-round commitment. How your small business performs throughout the year has an impact on your tax strategy. A reactive, annual meeting doesn’t give you any flexibility to change course and maximize your profit. In fact, it leaves room for costly surprises. Instead, make proactive tax planning a priority.
Because most businesses have annual, quarterly and monthly tax deadlines, you want to meet with your tax consultant on a monthly basis – ideally. At a minimum, you should meet with this partner quarterly.
Taxes can’t be an afterthought or a responsibility that only has relevance to you during tax season. Even if you’ve identified your tax requirements, you still need to ensure that you have the cash on hand to pay what you owe.
Avoiding late-filing penalties means committing to making taxes a priority and creating a plan to effectively manage your cash flow.
Cash-strapped business owners tend to dismiss the importance of timely tax payments. After all, you have other bills that seem more pressing. In reality, though, decisions that cause you to miss tax deadlines are extremely expensive. It’s a matter of compliance.
A tax consultant with small business experience is an asset for taking the stress out of preparing your taxes and meeting deadlines. He or she is an educational resource, helping you to:
Seek the support of a tax professional who understands the intricacies of running your small business and, most important, is available to support you throughout the year.
Click below to learn the keys to finding the tax consultant your business needs.