Should I File My Taxes Early? Small Business Tips for Success

The tax-filing deadline for most small businesses is March 15. However, some business owners choose to file their taxes early. There are several benefits in doing so, including avoiding penalties and interest, taking advantage of deductions and credits, and getting your refund sooner rather than later.

Some small business owners wait until the last minute to file their taxes, but this can be a mistake. Filing early will give you peace of mind and allow you to focus on running your business.

If you are considering filing your taxes early, keep reading to learn about the 6 benefits of doing so!

1. Fewer Errors:

Filing your taxes early gives you extra time to double-check and make sure you’re not making any mistakes. When you rush to file, you may not verify all of your data or review your calculations. By filing early, you are able to take the time to go through your return, check it for accuracy, and fix any errors. Additionally, filing early allows you more time to consult a tax professional, in the case that you need help. Having an accurate and reliable set of tax returns will increase peace of mind and decrease the chance of an audit.

2. Avoid Penalties and Interest:

Filing taxes after the deadline can come with hefty penalties and interest rates. By filing your taxes early, you can avoid these extra charges as well as the hassle of dealing with the IRS. Additionally, filing early can help you avoid a scenario where the IRS contacts you because you failed to file. This can result in additional penalties and make for a much longer process. To avoid having to go through this headache, it’s best to file your taxes as early as possible.

3. Early Filers Can Take Advantage of Deductions and Credits:

By filing your taxes early, you can ensure that you don’t miss out on any deductions or credits. This can help you save money and maximize your tax refund.

4. You Can Get Your Refund Sooner:

The sooner you file your taxes, the sooner you can get your refund. This can come in handy if you are in need of cash flow. Filing your taxes before they are due will give you immediate access to any tax refunds.

5. Avoid the Rush:

Filing your taxes early also means that you will avoid the typical rush of tax filing at the very end of the tax season. This can make the entire tax filing process much more smooth and less stressful. It also allows you to get all of your tax documents in order before the filing deadline.

6. Use your Refund to Reinvest in your Business:

One of the main benefits of filing your taxes early is that you can use the refund you receive to reinvest in your business. By filing early, you can get access to this refund money sooner and can use it to invest in new technology, products, or services. This in turn can help your business grow and thrive.

Are You Ready To File?

By filing early, you can avoid penalties and interest, take advantage of deductions and credits, get your refund sooner, and avoid the rush of filing at the very end. Filing your taxes early is a smart move, helping you save yourself time, energy, and money.

By following these tips, you can make sure that you are getting the most out of your tax planning efforts. Call us on (817) 238 0100 or EMAIL one of our friendly team to book an appointment today.

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Andrea Ward, CPA

Andrea officially began her accounting career in 1987. But it all began much earlier than that as a kid when she meticulously budgeted her allowance to buy really cool toys. Since then, she has earned Cum Laude honors with a Bachelor in Business Administration, with equivalent minors in Finance and Economics from Texas A&M University. A CPA and Registered Investment Advisor, Andrea loves helping people accumulate wealth.