Are you going to file a tax extension again this year? If you are in the habit of filing a tax extension each year, you are not alone. According to the IRS, over 20% of taxpayers put off their taxes until the final two weeks of the tax season. And, 7% of taxpayers file for an extension each year. However, did you know that a tax extension is an extension on the filing date, but not the due date? That means you may still be subject to penalties and interest even if you file a tax extension.
Filing an extension may be necessary, however, it shouldn’t be a habit.
Make this years’ extension the last one!
Make a commitment to yourself that this is the last time you will file an extension. Get into the mindset of filing your taxes on time.
Find Trusted, Reliable Bookkeeping Help
The best way to avoid filing a tax extension is to find a reputable company that is local and in business for at least 10 years. You can search your LinkedIn network and other sites for a professional bookkeeper. Tap into your current business network to see who is using a bookkeeping service that may be a good fit for you.
If your bookkeeper is new to bookkeeping or only understands data entry in QuickBooks, you may need to keep searching. They need to be comfortable with setting up a chart of accounts and know their way around a profit & loss statement and balance sheet.
Once you find a bookkeeper that is a good fit and can meet your needs, define a recurring weekly or monthly bookkeeping service with them.
Communicate Expectations & Meet Regularly
Once you’ve engaged a bookkeeping service, clearly communicate your needs. If you expect the books to be closed each month by a certain date, then let her know. If you need the books updated by Tuesday morning for the prior week, make sure she is clear on your requirement.
Finding a local bookkeeper is important. You should meet either weekly or at least monthly. The review could be as simple of reviewing how business is progressing and answer any questions from your bookkeeper.
Monthly or quarterly, review some of the details on key line items of your balance sheet and profit & loss statements. Stay close to the numbers!
Use Your Bookkeeping to Grow
If you are paying a bookkeeping service to maintain your books, then you should get the most out of the process. Once you have regular updates on your key financial reports, you need to use that information to grow. Analyze the reports to look for both threats and opportunities and make key changes to stay on track.
One of the most underutilized reports is a good financial forecast. With the help of your bookkeeper, create an updated forecast at the end of every month. Create a detailed forecast that goes out at least 3-6 months and for 12 months at the end of the year. You should then compare your actual results to your forecast and discuss any major fluctuations with your management team.
Focus your precious time on business growth.
Focus on what you do best.
YourBizManager ( www.YourBizManager.com ) can help. You can start the process by sending us an e-mail to info@YourBizManager.com with your contact information, a list of your issues or what you want to achieve, or texting or calling 424-246-6006. We will respond within 24 hours.
Contact us today to receive your free consultation and 50% off of your first four (4) hours of service.
About Doris Cristiano & YourBizManager.
As an independent bookkeeper, Doris has been providing flexible business services for clients in Santa Monica and West Los Angeles since 1997. To support Clients’ needs and growth, YourBizManager has been providing flexible services tailored to each unique business situation and often working closely with them in their small business or home office.
