If you were asked, would you casually write a check to the IRS for $ 10,000.00? Of course not! Few of us would these days.
So why do we fail to realize how much we are giving away to the government in decisions we don’t even give a second thought. What do we mean? If you are a corporation, you need to file a corporate tax return even if you do not have a profit. Some business owners, especially sole proprietors, know they are operating at a loss, and think this is not necessary. WRONG!
Think you filed an extension so you are home free? WRONG AGAIN! If you have filed an extension you need to know this is an extension to file– not an extension to pay. Interest is charged on taxes paid late even if an extension of time to file is granted. Furthermore, there is also a penalty assessed if you don’t pay in at least 90% of what you owe this year, or 100% of what was owed last year (whichever is less). And there can be interest charged on the penalties!
So, the bottom line here is to be proactive- don’t get caught after the fact with a surprise! If you are making money, make sure you have full information. Know you year-to date profits after the close of the third quarter, so you can do some proactive planning. There are implications regarding the manner in which you spend these profits that your tax accountant will guide you on. But most importantly, don’t just let that profit sit in the bank- you will be writing a large check to the US Treasury! We know- we have seen it happen.
How can we help you?
- By setting up an organized internal accounting system, with controls. This enables you to enter the quarterly taxes as account payable in you QuickBooks system. We can coach your bookkeeper if you have one, or our team can do these tasks for you if you don’t.
- By keeping up your entries, on a weekly and monthly basis, so you can see your progress unfold as you view monthly reports. That is the time we ask the material questions- the ones that your tax accountant will be asking at the 12th hour when you rush in with a mess. Let us put the chaos in order for you- on an ongoing basis. You will be able to see where you’re going.
- By providing quarterly reviews for you; alerting you to year/year improvements in profitability. Empowering you with your information, in an organized fashion, is our value add. We can even pay your quarterly estimated taxes for you. We will prepare your Pre Year end financials, send them directly to your tax CPA, and even work with them on your behalf, so the analysis is complete and you step in to make decisions with their guidance. We encourage you to meet your tax professional in the fall for tax planning purposes- so you can plan ways to handle to the profit, benefit the business, and minimize the tax bill.
- By providing our awesome year-end package to you and your tax accountant- with all the supporting documents they need. 100% of our clients have separate tax accountants; and they all appreciate our work product because it takes the pain out of the process for all!
So, if you don’t want to tip the government, call the Team at YourQBGuru today! We are here to help you plan proactively- and now is the time!
To your success,