Taxes Done, Now What?
Just When You Thought You Were Done Thinking About Your Finances This Month
April has arrived and there are a few important things that are happening this month. It will start to feel more like Spring, for most of us tax season will come to a most welcomed end and the first quarter is done. There is much to cover this month so let's get right to it.
It's hard to believe but the first quarter is already completed for 2019. This is an important time in small businesses especially. Many small business owners choose to leave the accounting of their business to quarterly. The reasons for this range from not having enough activity during the individual months or having so much on their plate leaving little to no time to tend to their books. It cannot be stressed enough the importance of reconciling your books monthly. However, at minimum quarterly should be the time you reconcile your books and actually assess where the business is financially. It is also a great time to look at the business financial goals and see how the actual numbers measure up. This analysis will allow a small business owner to make the necessary changes to ensure the business is financially solid.
April 15th is also around the corner; tax returns are due along with tax payments if necessary. It is important that you work closely with your tax accountant during this time. Surprises in regard to taxes and payments should be kept to a minimum. If you are in the position to owe taxes and cannot make those payments, do not ignore the situation. Create an action plan with the IRS to make a payment plan, understanding the penalties and fees of creating such a plan and making sure you are committed to making the payments within the plan. This is also the date that first quarter payments for 2019 are due. Again, if you are in a position that you owed taxes for 2018, making timely quarterly payments for 2019 will help greatly to ease that tax burden next year. Be diligent in working with your tax accountant in regard to these and all other tax issues you may be having.
Lastly, many confuse the different types of accountants that a business owner can utilize in their business especially during this time of the year. Make sure that you as a business owner understand the type of accountant you are utilizing in your business and that this person can help you in the way you need. A tax accountant may only offer tax services and not be able to assist a small business owner in their business finances.