The vast majority of individuals wait until the last minute to file their tax returns. They believe as long as they hit the April 15thdeadline, their businesses won’t suffer any financial penalties. However, there’s much to gain from getting it over with as soon as possible. Check out all the benefits your business can enjoy when you file early in the season.
Get your refund much sooner
If you anticipate a refund, you can receive it a lot faster by filing your tax return early. Few business owners file their taxes early in the season, which means your refund will have a quicker turnaround time. Business owners can get their refunds even sooner when they e-file and sign up for direct deposit.
Everybody loves an early refund because there are so many ways to use it. The refund could help you pay off outstanding balances, or you can stash it away as capital for your business. No matter what you do with the refund, it’s always more profitable to get it sooner rather than later.
Avoid tax identity theft
Identity theft occurs more frequently at the beginning of tax season. A thief can steal your social security number and file a tax return under your name. This means the IRS will send your hard-earned refund to the thief instead of you. When you attempt to file your return, the IRS will reject it because your social security number was previously associated with the fraudulent return. You’ll need a lot of extra time and paperwork to get the problem sorted out.
Business owners can avoid this headache by filing their returns early in the season. Early returns significantly reduce the risk of tax-related identity theft. Individuals will have some peace of mind knowing their social security numbers are safe and their taxes are taken care of.
Plan ahead for big investments
Many businesses need to get their returns out of the way before they can accurately plan their finances. The amount you owe or plan to receive can help you budget the various parts of your business. Those who wait until the last minute to file could get caught off-guard by how much they owe. By filing their returns early, business owners can adjust their finances accordingly.
Book appointments with a tax preparer
There’s a high demand for tax preparers towards the end of tax season. Business owners who wait to file will be hard-pressed to find a tax preparer with available time slots. Few people get their taxes done early, which means tax preparers’ schedules are wide open. Owners can enjoy the freedom of booking consultations when it’s most convenient for them. A smaller client base also means the tax preparer will process your return much faster.
The list of benefits doesn’t end here. Once they complete the process, owners will be surprised by how much filing early boosts their businesses. Get a head start on your return by reaching out to the tax preparers at MCG Solutions!