Things to Consider After Filing Your Tax Return

Whew! You made it. Like many people, you filed your personal as well as business taxes on time. Now you are free to jump back into your business. With the due date well past, it is easy to feel a great sense of relief. Many of us may even attempt to push any memories of the tax season out of our minds. Yet, there are things you should consider after filing your tax return. 

First, perform a quick analysis or one last review to ensure there was nothing missed. A quick assessment and follow up with a CPA can help determine if there were any errors or omissions in your return. The solution is to file an amended return. An amendment corrects mistakes after the fact and potentially reduces your tax liability and/or heads off penalties. 

Along with a quick assessment, it is a good idea to create a plan to organize and manage all future taxes. A tax plan assists with simplifying record keeping. Good plans include software adjustments that positively impact the process. For instance, migrate away from Excel spreadsheets into a more comprehensive accounting solution like QuickBooks. Accounting software saves time and energy hustling around gathering necessary tax related items. Software organizes the process, often removing the age-old practice of stuffing loose receipts or invoices into a box.

Hire a licensed CPA. A licensed CPA can develop strategies that leverage the current tax code to reduce your tax liability and positively impact your cash flow. CPAs are required to complete advanced education and ongoing training and keep abreast of current federal and state tax updates. The insights of a good CPA are well worth the investment.

Take a deeper look at your banking situation. A key ingredient to your daily profitability is your bank and the services available. Is your current bank still meeting your needs? Is their online system hard to navigate? It is imperative to open separate accounts for your personal and business dealings. You may also want to open a separate account to hold tax payments until they are due. This could greatly improve your cash flow and eliminate the guessing game of how much money is really available. 

Few enjoy filing their taxes. However, to gain an advantage, enact a few simple practices to help the process run smoothly. Give consideration to performing one last review of this year’s return. Take a look into implementing a tax plan, hiring a CPA, or changing your banking services. What better time to improve your position than after filing your return and in preparation for your future!