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Why It's Important to Keep Up with Business Taxes throughout the Year

Last updated 2 years ago

Every business should keep close record of their taxes regardless of how close it is to tax time. If your business needs help keeping track of your financial records, then hiring a CPA may be the perfect solution. Before you set up a consultation, consider some of the reasons why it’s important to keep up with business taxes throughout the year:

  • Monitoring Business Progress

One reason why recordkeeping is so important is to allow businesses to track their progress. Keeping track of your tax records will not only help determine whether or not the business is successfully improving but can also help identify which items are selling or what changes should be made.

  • Identifying Sources of Receipts

Corporate businesses will often receive money from many different sources. Tracking yearly taxes can help companies identify the source of their receipts, helping to separate business from nonbusiness receipts and identify taxable income sources.

  • Keeping Track of Deductible Expenses

With so many financial transactions being made, it can be easy for companies to forget which expenses may be deductible. Keeping a good handle on taxes will make preparing your tax returns and identifying deductions an easier process towards the end of the fiscal year.

  • Avoiding Audits

One of the biggest reasons that businesses should keep a close record of their yearly taxes is to avoid an audit by the Internal Revenue Service, or IRS. In the event the IRS does audit the company, complete financial records will help to explain any expenses in question.

If you’re searching for the best CPAs in your area, then look no further than Restivo Monacelli. Our CPAs and business advisors provide the best outsourcing solutions, tax reporting, and tax representation for your needs. Visit us online or call us directly at (888) 436-1984 for more information.

 

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