The official deadline to file the federal income tax return, if you have an S-corp or partnership, is March 15th. It is also the deadline to file for an extension, if necessary. For C-corps, the last date is April 15th. Filing tax return deadline for all individuals, which applies for most business owners too, is April 15th. Partnership tax returns filing can be extended for S-corp and C-corp up to September 15th and October 15th, respectively.
Months before this deadline, accounting and bookkeeping teams will be on their feet to close all files promptly. After March 15th, only those clients that filed an extension need to be taken care of. This means the teams must continue to work tirelessly and be ready for the business even after the deadline is crossed.
Here’s what your accounting and bookkeeping teams can do to manage work during the extension period to meet the above deadlines and stay focused.
- Make a List – During the tax season, first make a list of all deadline dates for tax filing. Once you get familiar with them, you can set individual goals for the team members to complete their tasks on time. Teams must be instructed to collect tax documents in advance and keep clients informed about the tax filing status. This way, there is no unnecessary delay in work or filing for an extension. These goals can be continued through the extension season, as well.
- Stick to Timeframes – Once a tax filing activity is taken up (such as document collection and preparing the return), ensure it is completed within the time frame. The accounting and bookkeeping team must work at peak performance whether it’s before the deadline or after. Don’t procrastinate during the extension period. All tax filing activities need to be completed as per schedule to get a high customer satisfaction rating.
- Study New Tax Laws – The extension deadline is also a good way to learn more about taxation. The off-season can be used to study the Tax Cuts and Jobs Act or any other new tax laws.
- Do a Client Study – Accounting teams can conduct client study during the lean extension period. Assessing the tax return process for each client can help them deal with similar situations in the future. Being in the tax and accounting business, you need to devise methods to deal with clients who file in the last-minute, as well. This helps individuals who work remotely and minimizes headaches for in-house teams, as well.
Internal accounting and bookkeeping teams need to stick to a standard workflow to maximize the firm’s efficiency in every tax season, irrespective of whether it is before or after the deadline date.
Moving accounting and bookkeeping services to an external partner can offer the benefit of timely tax filing, maintaining accurate financial reports, and compliance with various financial regulations. SmartFin is a leading financial specialist, with expertise in end-to-end accounting and bookkeeping services. With SmartFin in the background, scalability is never an issue. No matter how many clients you take, your tax filing and other activities will be completely taken care of. If you’re interested in our services, drop us a line and we’ll get back to you.