As a small business owner, you have to prepare your taxes quarterly. That means that you’ve got a little under three months to submit your taxes for the company and a bit over six-and-a-half until your personal taxes. With that kind of time, why should you worry about filing now?
The answer: Because everything is easier if you’re prepared earlier.
We beat this drum every year around this time. The simple fact of the matter is that the IRS is a sprawling behemoth of an agency, slow to move and slow to process. The closer to the tax deadline you get your materials in, the more chance there is for it a mistake to happen, an audit to pop up or your return to come later than you’d prefer.
With that in mind, let’s outline the three major advantages of starting early.
- You’re not caught off-guard. This is critically important, because problems regularly crop up as you fill out your tax forms. Maybe you didn’t realize that your income has changed and you need to file a new form, maybe you make an error and need to double-check everything or maybe you need a tax professional to handle it for you.
- You’re less likely to lose something critical. If you’re like me, your file system is not perfect. You don’t want to be dumpster diving for records.
- You beat the rush. The IRS has a significant lag time on returns, but that’s naturally shorter when the agency is not processing millions upon millions of returns. The earlier everything’s filed, the earlier you can get your return back and use it for the things that matter, i.e. business improvements, home improvements and family vacations.
Over the next couple of months, we’ll dispense more tax tips, so be sure to stay tuned for that. When do you plan to file?
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