5 Reasons To Get Your Business Books Updated By Tax Time

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Making Taxes Less Taxing April is a month most people dread, especially if they own a business or have a lot of investments. Yes, this is the month taxes are due. But while taxes are notorious for causing headaches, it does not have to be this way. A little knowledge and a good tax professional can make April a pleasant month, after all. This website exists to be your go-to resource for all things tax-related. Learn how tax pros can help you, and also gain a better understanding of various tax codes and how they might apply to your situation. Taxes can be taxing, but the knowledge presented in these articles should make them less so.



Do you struggle to keep your small business's books updated and current? If so, tax time is the ideal time to get your accounting completed. and brought up to date. Why? Here are a few of the best and most profitable reasons to get this job done now. 

1. All Expenses Are Included. Your tax preparer will work hard to minimize both personal and business income taxes by using tax deductions and credits. But they cannot take deductions that they don't know about. So if your expenses haven't been organized, recorded, and included in the right accounts, you may leave money on the table at tax time. 

2. The Numbers Are Final. Sending off income tax forms to the IRS and state tax agencies draws a line under the year in your books. These numbers will be official and are expected to be completely accurate. But you can't file with confidence if some elements of income, expenses, depreciation, and other parts of your tax return may not be the final versions. Any mismatches from IRS records could cause a red flag. 

3. You're Meeting with the Accountant. Many businesses don't have the budget or time to meet with their accountant often. So you need to maximize what you get accomplished at this tax time meeting. How can you do this if you don't know what's going on in your books? Get transactions caught up so you can analyze financial statements, plan for the new year, and discuss changes that may affect your finances. 

4. You'll Save Money. While you could hand your accountant the proverbial shoebox of receipts at tax time, you'll also pay for their extra work. Small business owners on a budget can save significant amounts in expensive accounting fees if their books are organized, everything is recorded in software, and the accountant can rely on simple statements and reports. 

5. It's a Deadline. Tax time serves as an ideal cutoff point to put to bed your accounting from last year and move on to the new year. If you've found yourself procrastinating keeping the books, closing months in the software, and creating financial statements for posterity, use this obvious — albeit artificial — deadline to do so. This way, you aren't haunted by the old and can instead focus on the new. 

Where to Start

Do you need help bringing your books up to date before meeting with your tax preparer? Ask about other accounting and bookkeeping services they provide. With their help, you'll be ready for tax time and can put the old year behind you as you look forward to a prosperous new year. 

For more information on accounting, contact a professional near you.

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