4 Reasons to File your Taxes Early

Many people hold off filing their taxes until the very last moment. However, whether you think you will incur a tax liability or not, you should consider filing your taxes early. It's never a good idea to file late or to not file your taxes at all, and doing so could result in penalties or even prosecution. So make sure that you file on time, but also think about filing your taxes early. There are many benefits to early filing. Here are a few of the main ones:

1. Faster tax returns

This is one of the main reasons why you should file your taxes early. Filing your taxes early enables you to receive your tax refunds more quickly, and your bank account will thank you. The best way to ensure that you file your returns fast is through the electronic system. Paper filing can take a longer time, and might prevent you from receiving your refunds in the shortest time possible. An experienced Tax Accountant can help ensure that your taxes are filed completely, quickly, and accurately.

2. Extra time for budgeting for liabilities

Preparing your taxes early gives you an accurate reading of what your tax liabilities are for both State and Federal. This can give you a couple extra months to help save/budget for your due tax payments without having to request an extension or payment options. If you need to request a payment option, you may incur additional fees and interest payments. 

3. Protects you from identity theft

Rushing through the process to file for your returns can put you at higher risk of identity theft. Many scammers actually target people in the first week in April, offering victims to quickly process their returns for them. Unfortunately, many people fall victim to such scams, and put their personal and banking information in the hands of criminals. So file early and calmly, and always seek assistance from a reputable tax service provider, should you need one.

4. Eliminates tax deadline stress

There are deadlines set for people to file their tax returns (April 15th). Failure to meet this deadline, and you might be fined or your refunds delayed. Late filing of taxes is associated with anxiety and stress for so many people. Therefore, prepare and file your taxes early, and save yourself some undue stress.

In summary, filing your taxes early enables you to concentrate on other important issues in your life or business. You can do it on your own or seek the services of a professional accountant to help you file your taxes.   

Accelerated Accounting

Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705

(520) 272-4005

The Importance of Bookkeeping

Bookkeeping is essential to any business either small sized or big business. When this vital process is neglected, it will have a direct adverse effect on the business. Bookkeeping is the organization and storage of accounting and financial documents. It includes the creation and management of financial statements, ledgers, income tax returns and business journals. The following explains the importance of bookkeeping:

Enhances financial analysis and management

The management of cash flow in a business is among the most important things to focus on. Failure to ensure that invoices are paid on time; payments from customers are followed up and recorded and ensuring that your suppliers are paid, will eventually crumble your business. Bookkeeping enables you to keep track of all your operations and reminds you of what needs to be done and identify growth opportunities and over-expenditures. 

Enables you to meet your tax obligations

Bookkeeping guides you on how to keep track of all your business information and documents. By keeping all your records in order, you will be able to know how much you are supposed to pay as tax and your revenue. When the time to file your tax returns arrives, you will have potentially no shortfalls because everything is planned for and the money is already set aside.

Makes it easier to report to investors

You will no longer have to worry about the information you will give to your investors and board members. Every little detail will be recorded and filled accordingly. Any financial document will be readily available if requested by the board or upper management.

Business planning is easy

Bookkeeping can enable you to see whether you are making profits or losses. By the use of an updated profit and loss accounts or the balance sheet of your business, you will be able to understand the financial position of your business at any time. It can also help you plan your business appropriately in many ways. In case you are making losses, you will identify the areas that are not making profits and improve those areas or make the necessary changes.

Reduces the stress of an audit

In case an audit is done on your company or business, you will rest easy knowing that everything is in order. Additionally, having your accounts updated will make the entire audit process more easy, less costly and fast. You will be able to go back to doing business instead of spending countless hours trying to explain your books.
In summary, professional bookkeeping is important to any business or organization. To ensure that all your records are kept in a proper manner, it is important to hire a professional bookkeeper. 

Accelerated Accounting

Tucson Accounting, Bookkeeping, and Tax Preparation Experts
145 E. University Blvd., Suite 1A
Tucson, AZ 85705

(800) 272-4005