There are a number of reasons why you should think about having your accounts filed as early as possible such as exploring financial benefits and financial planning. Therefore, we are going to look at why you should have your accounts filed early
Understand Your Tax Liability As Early As Possible
You will find that you are in a much better position when you understand your tax liability as soon as you can. You will have the scope to get a better grip on your cash flows and it could avoid you from needing to find a loan to fill any short term gaps.
You can also begin saving so you have the cash available to pay it while your budgets are going to be much more accurate. Your accounts will also be available should you have plans to apply for a loan or a mortgage while you will have a clear understanding of how much you actually own.
Carry Losses Back
Over the last 12 months, in particular, there are many businesses that will find that they have made a loss. Especially after being forced to close or alter their way of working. If you are considered to be one of these businesses then there is still plenty of hope for you. This is because you can carry trading losses back against any profits you’ve earned in previous periods. Therefore, if you have always paid any tax that you owe then you can apply for a tax refund. This can help to improve the cash flow of your business while you focus on rebuilding it after the problems you’ve faced over the last year.
Possible R&D Claim
While the past year has been troublesome for many, some businesses have looked to innovate. Some have focused on developing new products or services to ensure they keep up to speed with the ever-changing landscape. This could mean that your business qualifies for an R&D tax credits if any of the developments you have made meet certain criteria.
It Makes Life Easier For Your Accountant
Over the last 12 months, we have all had to make changes and that is no different for accountants. There have been plenty of government schemes to understand while more businesses have required support and advice when it came to dealing with the challenges that came with the pandemic. What this means is that your accountant will really appreciate you submitting your accounts as early as possible. This will allow us to take your work into consideration when planning while we can also maintain our high standards. Furthermore, if there are any issues with paperwork or your accounts then it pays to identify these as soon as possible rather than close to the payment deadline as that could lead to further problems.
So, there are a number of benefits to getting your accounts completed but more importantly, it gives you greater transparency and clarity as a business.