- October 19, 2020
- Posted by: Raymond Gibbons
- Category: Business Support
Why getting your accounts prepared early is good for your business..
The advantages of preparing your accounts early are many. But most people running businesses be it sole trader or company, tend to put off having their accounts and tax returns prepared until autumn. And many do not forward information to their accountants until their deadlines are looming large on the radar.
This can be a recipe for disaster because with late returns comes the threats of, penalties, tax audits and the loss of audit exemption for companies.
So why not get your accounts in to your accountants early and here’s why..
- Closing off last years accounts lets you focus on the current year.
Closing off last years accounts enables you to focus 100% on the current year. You won’t have any distractions concerning tax deadlines or annual return dates. Close off early and give your accounts to your accountants and let them do what you pay them to do!
- Better planning.
When your accounts are up to date you now have actual information to assess previous years performance. You can analyse results, use the information to set budgets and to help set goals and objectives for the years ahead.
- Know your tax liabilities and plan payments.
If you have tax liabilities better to know about them early rather then when the deadline is upon you. In this way, you can start putting money aside early to pay the liability when it falls due or ask your accountant to speak to revenue if you feel you will have difficulty paying it on time.
And don’t be concerned, filing your tax return early does not mean your tax bill is due early.It just means you are prudent and planning ahead.
- Time to review your accounts and business with your accountant.
With plenty of time to review your accounts before you have to file any returns, you and your advisors can sit down without pressure and review your accounts and tax returns. Your advisors may be able to suggest ways to improve performance and or reduce any tax liability.
Your reputation as a business person will be enhanced when you are able to demonstrate to the likes of banks, revenue commissioners, creditors, investors, that you are on top of your business in all aspects.
Showing other interested parties that you can produce financial information in a timely manner that has been verified and signed off by you and your accounts can only help you in any negotiations.