It may seem like it’s far too early in the tax year to start preparing your business taxes, but the sooner you begin the sooner you can forget about them and continue focusing on your business.
Don’t wait until the last minute to file your taxes this year! Here are seven reasons why now is the best time to start getting your business taxes ready…
Reason One: Tax Deadlines Are Fast Approaching
For the 2019 tax year, the deadline you need to mark on your calendar is April 15, 2020. This day may feel like a long time away now, but all it takes is a little tax procrastination for it to catch up with you very quickly.
Instead of worrying about a date many months into the future, you can get your taxes out of the way now and turn what will be a major day of panic for many businesses into just another Wednesday.
If you get your business taxes ready in advance, you’ll also reduce the risk of having to ask for an extension. An extension will give you up to October 15, 2020 to file your return, but no extra time to pay, so it’s best to avoid extensions if possible!
Reason Two: You Have More Time
Extra time is one of the greatest reasons to start getting your business taxes ready now. By filing your taxes as soon as possible, you get more time to pay, which can make managing your tax bill much easier.
You’ll have a lot of extra time to get the money for your taxes together, and full knowledge of exactly how much you’ll need to pay. Even if you just prepare your taxes but don’t file them early, you’ll still have a greater knowledge of your tax obligations for this year and time to make a plan.
Discovering you owe more than you expected right before you need to pay your tax is not ideal!
Reason Three: You’ll Beat the Tax Preparation Rush
Preparing your taxes early means that you’re guaranteed to find an excellent certified public accountant (CPA) to help you. You’re also likely to get more of the CPAs time for your money.
The closer to the tax deadline you get, the more people you’re going to have to contend with for your CPA’s time. Hiring a CPA at the last minute may also cost you more, so it’s best to get in early before the rush kicks in and every other business and individual is searching for the best CPA.
If you’re not using a CPA but require information about your taxes, then you may still end up facing a lot of competition if you leave it too late.
Reason Four: No Penalties
Starting your tax preparation now means that you virtually eliminate the risk of landing a hefty penalty for missing the deadline. The longer you take to file your taxes after the deadline, the more you may have to pay!
Some of the most common penalties include failure to file, failure to pay, failure to pay proper tax estimate and dishonored tax check penalties. You could end up with hundreds of dollars of penalties, if not more, just for failing to prepare early.
The penalties and interest won’t cease until you pay your entire tax bill, but it’s easy to avoid failure-to-file penalties when you file your tax well in advance.
Reason Five: You May Get a Better Tax Refund
When you file your taxes electronically and select direct debit as a payment method, you could end up receiving your refund around a month sooner than if you filed a paper return.
People who file their taxes early – by around mid-February – actually receive larger tax refunds on average. This means that not only could you get your refund sooner, but you may also receive a much higher refund.
The earlier you begin your taxes, the more time you or your CPA will have to work out everything you can claim for – potentially saving you a considerable sum of money. Missing a deduction that you’re eligible for because you did everything at the last minute is not a mistake you want to make!
Reason Six: Filing Early Protects Your Identity
Getting started on your taxes now can reduce the chances of identity theft. The longer you leave your taxes, the more exposed you are to identity theft. Identity theft could leave you in a lot of trouble, as there’s nothing stopping someone else claiming deductions you’re not entitled to and falsifying parts of your return.
If you file before anyone else gets chance to, you could end up saving yourself months of hassle trying to sort the whole mess out. Filing early won’t prevent identity theft in entirety, but it does at least reduce the chances.
Reason Seven: Less Stress
Preparing and filing business taxes can be extremely stressful. This stress can multiply considerably when you’re working to a tight deadline and have a lot to get through.
By getting stuck in and started with your taxes you can eliminate deadline stress completely or give yourself a lot less work to do when the deadline draws closer.
Being proactive and hiring a CPA to help you while the tax deadline is still in the distant future will put an end to stress and worry altogether and give you a nice long break from your taxes until next year rolls around.
Contact APA Financial Services for Business Tax Services in Chicago
Get on top of your tax obligations for this year by contacting the Chicago tax experts at APA Financial Services today. Our experienced tax team can help you with state and federal tax preparation, advice, and management to make every aspect of your taxes much easier to handle, with greater rewards for you.
It’s time to dodge the rush and ditch the stress, by getting your business taxes out of the way today!
