Have you ever had that experience when your books were a mess that it took you longer to get your taxes in order? Or perhaps there was once a time when you were surprised - and pressured - by the huge amount reflected in your tax bill at the end of the fiscal year. As business owners, we all agree that these experiences are mentally and financially draining. The good news is, these instances can be easily avoided. All you have to do is keep your financial records up-to-date and accurate.
If you still haven't learned your lesson, here are more reasons why you should take more serious initiatives to get your financial records in order:
1. It makes IRS investigations more manageable.
IRS investigations can be intimidating and daunting, to say the least. However, if your records are organized, accurate and up to date, the IRS internal controls advisors will go through the examination and interview process with ease and thus, help you have the least amount of stress during this entire investigation process.
2. It can potentially lead to more tax savings.
Nothing compares to having your records well-organized, especially if you are concerned about your tax savings. Indeed, it is easier to know what to expect from your tax bill if your records are properly filed. Disputes can also be easily settled if you have invoices and receipts to attest to the deductions you filed. Otherwise, if your records are out-of-date and disorganized, you will have more difficulty in proving your claims.
3. It helps with the oversight of your business operations.
Having a good set of financial records at hand is always a smart choice. Being able to keep tabs on your financial records equip you as a business owner to have better control of your business operations. This means that you have a more thorough understanding of your business financial position - your revenue, your expenses and your assets and liabilities, among many others.
Putting a prime on tax planning and management through accurate financial records is a must for keeping your business afloat.
At FAS, we understand the value of having an organized and an accurate financial record. To further help business owners in getting their financial records in order, our firm offers professional bookkeeping services. Engage our experts' services today. Click here for more information.
We help you plan, forecast and analyze your financial data
so you can get on top of your finances today to grow your
small business big tomorrow.
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