The IRS has changed many of its usual tax season policies and deadlines due to the Coronavirus pandemic. First it announced that the filing deadline for returns would be moved from April 15 to July 15th in order to alleviate financial hardship brought on by business closures, illness, and quarantine requirements. However, the increased time you have to prepare your taxes should not mean that you delay prep work. Below are some best practices for preparing yourself for tax season.
Work Within the Cloud
If you’ve already transitioned to cloud based storage you should be able to access and work on all of your financial documents even while working from home. Maintain employee safety and health by allowing staff members to work remotely and communicate through email and daily video meetings to make sure that everybody has access to the documents they need and are staying on track with any tax prep work your business requires.
Use an Online File Exchange System
According to Accounting Web, whether your accounting department is outsourced or in-house, using an online file exchange system that integrates with your tax software is a good way to securely transfer the information that your financial team needs to prepare your taxes.
Utilize Online Collaboration Tools
Online collaboration tools like Slack, Google Teams, or Trello can help you keep track of what tasks still need to be accomplished and can help everyone stay connected on shared projects.
Plan Ahead
If you know some of the challenges you might face when it comes time to file, be proactive about seeking solutions before the deadline. Make sure that you have meetings scheduled with key staff members well in advance and that all of your paperwork is in order before starting your return.
File Online
Utilize the IRS’s File Free program or another online tax software to file your return online. Doing so will ensure that your return is processed quickly and that you receive your refund as soon as possible.
Use Your Knowledge of Your Current Finances
Preparing your taxes gives you a clearer idea of the financial state of your business. This can be a huge advantage in this uncertain time. Using past data, you can plan for the upcoming fiscal year and decide where to focus your operations in light of the changing landscape of the commercial sector.
Though the tax deadline for filing 2019 returns has been extended, preparing your finances for tax season sooner rather than later has immense benefits. While working remotely under a stay at home order can create unique challenges for your financial team, utilizing technology can help bring your staff together and can actually expedite your work process. Being ready to file or filing early can help alleviate some of the financial stressed caused by Coronavirus and will equip you to make the right financial decisions for your business going forward.
