In the ever-evolving business landscape, the importance of maintaining clean and accurate financial records cannot be overstated. Whether you're a small business owner or the CEO of a multinational corporation, the health of your financial records is a key indicator of your business's overall health.
Clean books are not just about compliance with tax laws and regulations, although that is certainly a crucial aspect. They also provide a clear picture of your business's financial health, which is essential for making informed decisions about the future of your business.
"Keeping your books clean is like maintaining a healthy diet," says renowned financial advisor, Jane Smith. "It might seem tedious and unnecessary at times, but it's the foundation of a healthy business. Just like you can't expect to stay healthy without eating right, you can't expect your business to thrive without accurate and up-to-date financial records."
Smith goes on to explain that clean books can help businesses identify potential issues before they become major problems. "If you're regularly reviewing your financial records, you'll be able to spot trends and patterns that could indicate a problem. For example, if your expenses are consistently exceeding your revenue, that's a clear sign that something needs to change."
Keeping your books clean requires regular maintenance and review. Here are some steps you can take to ensure your financial records are in top shape:
Neglecting your books can have serious consequences for your business. At best, you might find yourself scrambling to get your records in order at tax time. At worst, you could face penalties for non-compliance, or even legal action.
Furthermore, without clean books, you won't have a clear picture of your business's financial health. This can lead to poor decision-making and missed opportunities.
Maintaining clean books is a crucial aspect of running a successful business. It might seem like a daunting task, but with regular maintenance and the right tools, it's entirely manageable. And the benefits - from compliance with tax laws to informed decision-making - make it well worth the effort.
If you need any assistance with cleaning up your books, reach out to NATIVE RECORDS to schedule a free consultation.
The Coronavirus has grown into a global problem having an effect on people around the world. Because of the added stress for businesses and individuals alike, the federal government is making an attempt to alleviate some of the stressors within their control: income tax deadlines.
On March 20, Treasury Secretary Steven Mnuchin announced that the 2020 income tax filing deadline for both returns and payments will be extended. The Internal Revenue Service followed up with an official press release further explaining that the federal income tax filing due date will automatically be extended from April 15, 2020, to July 15, 2020.
"Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov.
This announcement comes following the President’s emergency declaration last week pursuant to the Stafford Act. The Stafford Act is a federal law designed to bring an orderly and systematic means of federal natural disaster and emergency assistance for state and local governments in carrying out their responsibilities to aid citizens. It was enacted in 1988.
Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people."
The IRS has created a special page on their website to keep taxpayers up-to-date about any additional changes or developments.
If you need any assistance with your tax returns this year, please don't hesitate to reach out to NATIVE RECORDS.