The Importance of Filing Business Tax Returns Correctly and On Time
It is our duty as responsible citizens to file income tax returns correctly and on time – the same is true for business owners. While it can be easy for businesses to become absorbed by the many responsibilities of running smooth operations on a daily basis, it is always important to set aside the time to prepare for tax filing season to avoid falling behind or missing certain deadlines. Furthermore, businesses should also keep an eye out for yearly changes in taxation to ensure that your returns are completed correctly. Filing tax returns correctly is extremely important for business owners. Read to discover a few reasons why filing your business tax returns correctly and on time will benefit you and your company as a whole.
1. Avoid penalties and prosecution
It is important for all business owners to understand the legal repercussions that could follow not filing business tax returns correctly or on time. According to the Income Tax Act, every business is liable to file for taxes that align with the amount of profitable earnings. Neglecting to do so is considered illegal and will result in businesses landing in legal troubles. Additionally, there are also late filing penalties for businesses who fail to submit their tax returns on time. Therefore, the best way to avoid these types of consequences is to plan ahead for tax filing season with the help of a trusted, local CPA firm.
2. Apply for loans
As a business owner, it is important to always have ample capital in order to continue to grow and maintain smooth operations. Especially for start-up businesses, receiving business loans is a great way to take the first step in expanding an organization. However, no matter if you are a small business or a large business, receiving some sort of financial help will always offer a number of benefits. With that said, applying for business loans is the best way to gain access to financial assistance for your company.
It is important to keep in mind that to apply for a business loan, business owners must submit the most recent income tax return as well as the calculation of income documents to the bank. Therefore, it is essential for businesses to get a head start on this process to ensure all information is ready and accurate if they wish to receive a loan.
3. Carry forward losses
While calculating yearly accounts, businesses who see incurring losses are able to carry forward those losses for the next financial year. This is beneficial for businesses because it can also help to reduce their taxable income and reduce payable tax in the future years. To successfully carry forward losses on yearly tax returns, it is recommended that businesses file their returns within the specified amount of time to avoid any penalties.
4. Claim depreciation
Tax depreciation is the depreciation expense claimed by a taxpayer on a tax return to compensate for the loss in the value of tangible assets. Business owners may claim depreciation if they have assets in their name or their business’ name. This is allowed only to the business owner, and the assets must also be used exclusively for business-related purposes.
5. Win government tenders
For construction businesses or contract workers, filing your tax returns on time may reward you with a government tender, or an offer to do work or supply goods at a fixed price. In order to take advantage of this great benefit, businesses must ensure that their tax returns are filed accurately and on time.
Choose Brock CPA for Tax Planning and Prep in Jacksonville
When it comes to filing business tax returns, it is crucial to practice diligent, forward-thinking tax planning, preparation, and compliance to achieve the best possible outcomes for this and the coming years.
At Brock CPA,, our experienced professionals offer leading tax planning expertise and guidance to help grow your business and improve your overall financial situation. Contact our office today to learn more about our tax planning and prep services for individuals and small businesses in Jacksonville, Florida.