Though it may be a little early for the official tax filing deadline of April 15, if you own or manage a business, it is never too early to start your tax planning preparations. Starting early can prevent a costly, mid-April scramble as well as ensure you have all of your line-item deductions properly delineated. If you are rushed to file, it is more likely you may overlook or miss out on money-saving deductions.
That’s why it is a good idea to have adopted good record-keeping practices all year-round so when it is time to gather that information to file your taxes, you already have everything set and ready to go. If you know your record-keeping has been shoddy, then now and not April is the time to start putting documents and business expenses in order. Using spreadsheet or tax preparation software is a more efficient and accurate way to organize and manage your business expenses for tax time.
Avoid Tax Penalties by Using Accounts Receivable Factoring for Fast Cash
Another reason why it might be a good idea to prepare for your taxes early is to determine whether or not you will owe the government money. It is a given that no one ever wants to owe on their taxes but if your business is currently going through a rough patch, this can be especially bad news. Now might be a good time to start planning ahead for how you are going to pay.
One option might be to work with a third-party invoice factoring company for factoring receivables. Using a small business finance or factoring company is a great way for you to get cash quickly by selling your most current receivables. This way you don’t have to wait to collect on your invoices. Though factoring accounts receivables can cost more than going to a bank, such term loans may be hard to come by in today’s slow-to-lend banking environment. Typical factoring claims get you the money you need is as little as 24 hours or less.
An Invoice Factoring Company Offers Accommodating Financing Options
Depending on your industry, other alternative commercial financing options could be inventory financing, purchase order financing, equipment financing and much more. Such alternative commercial financing options are much more flexible than a long-term loan and can be used on an as-needed situation, such as to pay your taxes.