Time is something most people wish they had more of, and you are probably no exception. Whether personally or professionally, weeks, months, and years tend to go by faster the older you get. In terms of business, the pressure of time is felt in quotas and reporting. As you already know, the first quarter of 2021 is now complete, which means you need to close out first quarter. Consequently, Bayou Bookkeeping & Tax Services in Baton Rouge is here to help with some important reminders.
First: Close Out First Quarter
As a business owner, you understand you must perform monthly, quarterly, and annual financials and tax filings. However, don’t forget that the process includes more than ensuring everything balances. Finalizing journal entries ensures accuracy, but measuring outcomes and evaluating business strategy ensures success. Therefore, both carry equal importance.
Once you complete your financials, compare your financial performance with your projections and goals. Are you meeting or beating your goals? Do you need to adjust annual projections or alter goals for the year? Now is the time to make adjustments. While 2020 was rough, 2021 is certain to experience its own set of challenges. Thus, staying on top of performance relative to goals helps solidify your overall outcomes and ability to pivot should the need arise.
Next: Determine Whether to File an Extension
If you plan to file an extension for your 2020 business tax filing, contact your accountant immediately to start the process. Don’t wait until the last minute. Why? You run the risk of missing the timeline and incurring fines and fees. Additionally, you may be asked to produce documentation that isn’t immediately available, which adds to the length of time it takes to file the extension.
If you pay quarterly taxes, you have additional deliverables you must also address. Spreading out your financial and tax deliverables helps to balance the workload. Moreover, it reigns in your stress level. After all, if you are anything like many U.S. business owners, reducing stress may be part of your undisclosed goals.
Finally: Move Forward in Confidence
When you stay on top of financials and business performance, you experience fewer surprises and upheaval. Of course, you can’t proactively mitigate every risk. However, accurate and consistent financial reporting and bookkeeping provide greater business insight and instill more confidence. The health and viability of your business thrive on these things.
Speaking of staying on top of financials, now is the time to confirm your tax preparer has all of your necessary tax documents if you are filing 2020 business taxes. As previously stated, you must now file an extension if you can’t file at this time.
Bayou Can Help
If you’re a business owner in Central Greenwell, Denham Springs, Baton Rouge, or the surrounding area, Bayou exists to support your payroll, tax, and accounting needs. Call us today at (225) 422-1137 if you need help to close out first quarter or require other financial services. You can also check out the subscription plans our existing clients enjoy.