In personal finance, there is typically on deadline everyone is aware of, and that is the last day to file taxes. Beyond that, individuals must file for an extension or they will be penalized via fines. Switching over to the business realm, there are more rules and regulation surrounding finances.
Unlike personal taxes that are filed once a year, businesses typically report quarterly depending on the structure of their company. For example, if you are an S Corporation, your deadline for 2018 was March 15th, and if you were a C Corporation, your deadline was April 17th. Same as personal taxes, these deadlines can be extended if necessary, typically through a written request to the IRS.
For those of you that are unsure about taxes, you can rest easy because there are different avenues to take while operating a business. The first would be to hire an accountant that can help during tax season. Regardless of your level of financial expertise, it is always a good idea to have a second opinion. Having an accountant you can contact is useful because you can still operate the financials of your business, but have the ear of an expert at your disposal. Many people will contract the work, but each business has its own unique situation.
Secondly, many of the accounting software products out there can be set with reminders and technology to help generate the numbers you may need for the upcoming tax season. This is when contracting your bookkeeping or accounting could prove useful as it may only take a couple of days to generate the appropriate information.
Lastly, maintaining accurate records and estimating taxes can help you prepare for the bill that is coming your way. This is simply preparing for what lies ahead. Each business must pay taxes and it can be easy to navigate if you know what the bill might be.
Preparing quarterly tax numbers can allow your business to stay ahead of the game and not be caught off guard. Again, many accounting products can help you determine this number is business finance is not your strong suite.
Knowing when your tax information is due is critical because the last people you want to be in trouble with are the tax collectors. Fines can derail business growth and even shut down unprepared companies.
The three items to keep in mind is first, ensure you have a professional you may contact. They can guide you through the tax reporting process. Secondly, ensure the accounting software your company utilizes enables reminders and can assist in generating tax reports. Lastly, maintaining accurate records and estimating tax bills can spare you stress down the road.
The taxman always wants his piece of the pie and nothing will stand in the way. Failing to correctly prepare tax documents will cause issues, so preparing them correctly the first time and respecting deadlines is the best route to take.