Year end is such an important time for every business...and yet I very rarely see a business owner care until it is to late. Many business owners will not even consider the financial state of their business until after we turn the calendar to 2011. Huge mistake! Why? Here is my thoughts on why you need to get a handle on your businesses bookkeeping right now.
- There is only so much that can be done from a tax savings perspective after the calendar has turned. Many people and businesses wait to look at their potential tax liability until after January 1st. It is true that there are some things that you can do to reduce your tax liability after January 1st, but not nearly as many options as you have while you are still in the tax year. Get a handle on your businesses bookkeeping now and schedule a tax review with your CPA in early December. Although this will cost you a little extra money upfront the tax savings you can realize will be well worth it.
- If you don't know the current financial state of your business you are running your business blind. As a business owner how can you possibly run your business effectively without ongoing bookkeeping and financial review? Keeping up with your businesses finances and reviewing them will help your company succeed and grow.
- You can save tons of money on bookkeeping and tax fees. Bookkeepers and CPA's are very busy from December through April each year. We raise our rates considerably from January-April every year. We also make sure that our ongoing clients that keep up with their bookkeeping get taken care of before any new clients. Bookkeeping and taxes can be intimidating, but don't procrastinate; it will cost you in more ways than one.
- Filing for a tax extension does not excuse you or your business from penalties and interest. If you are a business owner that is considering filing for a tax extension or has filed for an extension please read that first sentence again. This article has a great explanation of tax extensions. Keeping up with your bookkeeping and getting your financial information to your CPA in a timely manner will eliminate the need to file for an extension on your tax filing.
The bottom line is keep up with your bookkeeping. Review your personal and business tax situation with your CPA before the end of the calendar year. File your taxes on time.
Our books are up to date and I already have a meeting scheduled with our CPA for the first week of December. Do you? Do you want to? Email us.