Filing taxes small business accountant early has many advantages, including speedier refunds and more time to collect deductions and credits. Furthermore, filing early helps protect you against identity theft.
Most mobile tax apps enable users to generate and upload documents using photo capture, but some even provide in-app assistance to help answer questions..
1. Faster Refund
Filing your taxes early can result in a quicker refund than waiting until the last minute. With electronic filing, the IRS usually processes returns within three weeks or less.
However, paper returns can take longer to process. Furthermore, this year the agency is working through a backlog of returns that it hasn’t completed yet.
Tax apps company tax return can expedite the process of receiving your refund. Many offer direct deposit features, ensuring that money is deposited directly into your bank account right away.
Another advantageous feature of a tax app is its ability to connect you with an expert. Some even allow for uploading all documents so a professional preparer can file them on your behalf.
2. More Time to Gather Deductions and Credits
Tax apps make it simple to keep track of all your deductions and credits. The best ones are designed with the right questions in mind, then provide helpful suggestions based on what you answer.
Cash App Taxes (formerly Credit Karma Tax) will assess your situation and advise if it makes financial sense to itemize or claim the standard deduction. They also assist you in finding eligible credits and deductions such as the Child Tax Credit and Education Credit.
Prior to the filing deadline, it’s essential to evaluate your expenses and income. Doing this can give you a better insight into your taxable income – which will ultimately determine your total refund amount.
Early filing can help alleviate stress and avoid last-minute scrambling, as well as decreasing the risk of identity theft or missing tax forms and information.
3. Easily Track Your Expenses
A great tax app should be user-friendly and make filing your taxes a breeze. Most of these applications are designed to work with your smartphone camera, allowing you to upload all relevant information directly from your handset.
These apps make tracking expenses and deductions a breeze. Some even automatically categorize spending for you, creating reports based on this data to assist with the filing process.
Another way to track your business expenses is with a mileage tracker app. These programs use your smartphone’s GPS to monitor trips and record the mileage you incur.
Some of these apps are free, while others require a subscription. You have the option to purchase either a monthly or annual subscription depending on how many features you require and what level of support you desire.
4. Stay Organized
Avoid falling behind on your taxes is to start early. Filing early allows for any mistakes to be caught in official documents.
Missing deadlines could result in audits, which could incur penalties and interest. Furthermore, it gives you the chance to assess any changes to your life or finances that could influence your filing status.
A tax app is an invaluable resource to stay organized throughout the year. It also saves time by automating processes like receipt tracking.
One of the simplest ways to stay organized is by keeping track of receipts, notes and other documentation. Many apps can help capture, organize and categorize your documents so they’re easily retrievable when tax season comes around.
Additionally, budget software can keep you on track with your spending goals and budget. Furthermore, it collects information from your financial accounts for submission to a CPA or tax preparer.
Filing your taxes early with a tax app can save you time. There are various apps to choose from, so find one that meets all of your needs.