There's a sigh of relief as the dust settles from the chaotic tax season. After all, you've just created and reviewed piles of statements, receipts, and spreadsheets, not to mention the long list of questions from your CPA. The ink on your 2022 tax return has dried, and it's tempting to push it all aside and forget about it until next year. But hold on a moment. Just because your taxes are filed, can you finally be at ease?
It's a common view that once taxes are filed, there's nothing to worry about until next year. However, now is the best time to start preparing for the 2023 tax season to avoid the same pain and constant feeling of being rushed. Delaying the start of cleaning up your 2023 books will only set you up for the same conversations and results. So, let's discuss the aftermath of your 2022 tax filings and what can be done for a smoother process.
The Price of Procrastination
Lack of time during tax season doesn't just cause stress; it can also be costly. Reflect on your recent tax experience: were you able to locate 100% of all transactions and classify them correctly? Did you get surprised with a large tax bill? Or did you make assumptions due to a lack of clarity or incomplete records? Making assumptions can lead to mistakes, resulting in audits, penalties, and missed deductions.
Is it possible that some expenses were missed in the rush? Each missed deduction equates to money left on the table, money that could have been saved or invested. This is one of the pitfalls of waiting until the last minute to sort through a year's worth of financial transactions.
Additionally, there's the potential financial hit from your CPA or tax preparer. Rushed service comes at a premium. If your CPA had to spend additional hours sorting through and reconciling your books due to last-minute submissions, that extra time can lead to higher charges. That money would be better spent on business operations than unnecessary expenses.
Setting the Stage for 2023
The best way to experience a smoother tax season next year is to start now and keep your books clean every month. It's a proactive approach that pays off in the long run. By starting early, you can:
· Maintain organized records, which will make identifying and classifying transactions painless.
· Spot all potential deductions throughout the year.
· Find errors as they occur instead of when it’s too late.
· Ensure all opportunities are identified.
· Save on CPA charges, as clean books require less time to prepare tax returns.
And if you're thinking, "I don't have the time or expertise to reconcile my books monthly," don't worry. That's where we come in.
We're Here to Help
Knowing the need for efficient bookkeeping and the importance of preparing for tax season well in advance, we're offering you the opportunity to get your January through October 2023 financials clean before the end of the year. This will allow for tax planning with your CPA before the end of the year.
We understand that every individual and business has unique needs, so we're happy to discuss the specifics of your company and take a look at your books for free.
The reality is that tax season never truly ends. It's a cycle, and how you manage the aftermath of one tax season sets the tone for the next. So, don't wait. Let's use the lessons learned from your 2022 tax filings to shape a more planned, efficient, and cost-effective 2023.
Call or email MPC Consulting Services Inc. today, and let's ensure that your next tax season is nothing short of smooth sailing.
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