What do you think when you're given a deadline? When it comes to accounts and tax deadlines many people see that as an excuse to leave it to the last minute. I'm a big fan of doing business accounts and tax returns early, and here's a few reasons why:
Budgeting and cashflow
Tax payment deadlines remain the same even if you submit your return early. The advantage of submitting your tax return early is that you know how much you owe, so have plenty of time to factor the payment into your cashflow.
Get your tax refund sooner
It's not very often that we see HMRC as being on our side. However when it comes to refunding overpayments of tax they can be very efficient. If you're due a tax refund you will normally receive it within a few weeks of submitting your tax return, whether that's in 9 months before the deadline or right on the deadline.
Do your accounts while it's fresh in your mind
It can be hard to remember what that payment was for last month, let alone a year and a half ago. Keep your business accounting records up to date through the year, then at the end of the year the information is all ready to go. That way you won't be scrabbling around trying to remember what went on in your business at the start of last year when you would rather be focussing on what's happening this year. Having more time to prepare your accounts while it's front of mind also reduces the risk of errors. Once you've got into the habit of keeping your accounts up to date doing your tax returns is easy!
Know how your business is performing in real time
If you put off doing your business accounts you're also putting off finding out how your business is performing. With up-to-date your financial information you can make better and quicker decisions about the future of your business.
Gets it out of the way
Plain and simple, nobody likes to have items on their to-do-list which they can't get rid of. Don't let it hang over you for the best part of a year, get it done and out of the way.
Want to make your business accounting simple and painless? Get in touch to find out more.