Yes, we all hate preparing for taxes, filing taxes and paying taxes. But since we have to do it anyway, why not get it done early? Then you can take advantage of all the benefits.
#1 Get your money quicker! If you are going to be receiving a refund on your tax return, then having your accountant prepare your return early will get you paid early! Not only will you get your funds faster because you submitted them earlier, you’ll also cut down on the amount of time because there will be fewer returns in the system to be paid out before yours is.
#2 You’ll have more time to pay! If your accountant completes your tax return and finds that you need to pay, you’ll have more time to come up with the money and send it in. You can complete and file your taxes at the end of January but have until the mid-April deadline to pay without penalty!
#3 Your accountant will thank you! Typically, most clients procrastinate until that last minute to get taxes in. That results in a crunch time for your accountant to review your tax return and get it back to you for final review. The earlier you submit your information to your accountant, the more time they’ll have to review and complete your return. Did I mention you’ll make them very happy as they will have one less call to make to a procrastinating client?
#4 You’ll avoid fees and tax extensions! What if you wait until the last minute and then discover you are missing a key piece of financial information? You’ll have a limited amount of time to track it down and your tax return. If you need to file an extension, it is only an extension to file, not an extension to pay. That means if you end up owing, you may have to pay a penalty.
Do yourself and your accountant a favor – get your tax return completed early!