It’s that time of year again, folks! Making sure to have your small business’ books ready to go is even more crucial now that filing season is upon us. While you may have the online bookkeeping portion of the process down by now, filing and understanding the deadlines and nuances of the process is a different kind of animal. Unlike previous years, however, the impact of the Coronavirus pandemic has shifted some of the dates and deadlines. In today’s blog, the team at HWB Services will discuss the season shift and how it may impact your business, as well as what your best steps are.
A Later Start Date
Typically, the International Revenue Service (IRS) hosts tax season at the same time every year – typically late January until April 15. This year, however, the IRS has pushed back the date to begin filing to February 12, about three weeks later than it normally would begin. The reasoning behind this is because the agency declared the need for extra time in order to update its systems to properly reflect late-year tax changes, including the second round of stimulus payments approved by congress. While the start date will begin later, as of now, the filing date is projected to remain the standard April 15. With all of that in mind, what does this mean for you and your small business?
What This Means for Your Business
With a shorter window and a delay on small business assistance such as the PPP and other loans, time is absolutely of the essence. This means that working with a pro and creating a tax plan to get through this season can be more beneficial and necessary than it has in the past. If you have filed in the past or even if this is your first time, understand that the sooner you file the correct information the better the outcome and the sooner you can receive your return. You’ll want to first collect your records in an organized manner so as to be able to access them easily and efficiently. Online bookkeeping platforms such as QuickBooks can make this step more streamlined if maintained correctly.
Next, you’ll want to ensure you are filing the right form. Whether your business is a sole proprietorship, an LLC organization, or even a non-profit, each type will have a different form. To ensure you file correctly, a pro can help you by extending their knowledge of the system and what is best for you.
Remember to E-File
The final step in the process is to file your form properly with deadlines in mind. The IRS has explained that individuals and small businesses will likely receive their returns within 21 days if they file electronically and have their refunded deposit in their bank account, eliminating the delay of paper returns. Keep in mind, however, that some forms cannot be filed electronically, which is why it is best to speak to your online bookkeeping pro beforehand.
Speak to a Pro Today
While the tax season begin date has been shifted, reports are indicating that the file date will not be. Contact HWB Services at 214-273-6599 to speak with our team and find out what your next best steps are.