Keep cool as tax time wraps up
April 11, 2013
Each year, there is always a population of individuals that scramble to put together their forms and file their taxes before the April 15 deadline comes and goes. These procrastinators often have to rush and contend with a lot of stress, and mistakes can be quite common when things are left until the last minute.
While preventing this and taking care of tax responsibilities as soon as possible is the best practice, sometimes rushing at the end is unavoidable. Perhaps a form went missing or was not delivered, or maybe there was not enough time to compile all the information because other timely tasks presented themselves. Whatever the reason, business leaders have to make sure to keep a cool head and remember that it is possible to file taxes correctly even if it's at the last second.
Create a list
As with other business processes, company leaders might see increased success if they draw up a to do list to ensure that nothing is forgotten. According to Entrepreneur Magazine, this step is equally important if leaders are scrambling with only a few days left to file. The source said that startup owners should list the forms they need, individual financial accounts, personal claims, investment data and other elements that will be crucial to have on hand when doing taxes.
Go by the books
Despite the temptation that might be present, this is not the time to cut corners, even if it can save a few minutes. According to the Denver Business Journal, the IRS has begun cracking down on companies that under report earnings, and it is exceedingly easy to verify the correct amounts. This can result in audits and red tape that can tie business processes up and result in lost face and revenue alike.
Rely on software
Accounting software can be invaluable during these times. Not only can company leaders save a lot of time that would otherwise be spent manually entering numbers or waiting on a third-party service, but in using these programs, administrators can ensure that their firm is compliant with all applicable laws. Mistakes are often easily caught when this process is automated, so to save time and avoid penalties in the future, financial software might be the way to go.
Entrepreneur also reported that this can help small business owners make sure their tax preparers - if they aren't doing it themselves - are shared on all the appropriate documents.