Think back to the moment you decided that you wanted to start your own business. There were multiple steps involved such as registering your company with the Secretary of State, obtaining an Employer Identification Number (EIN), hiring employees and securing contracts. You’ve invested a lot of time, labor and money into your business – simply said, your business is your livelihood. And for that reason, it’s extremely important that you keep your company records up to date.
Accurate record keeping becomes particularly important during tax time. Poor record keeping could cause an underpayment in taxes. Also, it can cause you to oversee important deadlines such as annual report filings with your Secretary of State. If your annual report is not filed within a certain time frame, it could cause you to lose your status, which could ultimately cause another company to buy and use your company name.
If paperwork isn’t your favorite task to tackle, consider hiring someone to help get all of your paperwork in order properly. Many accounting firms offer services during tax time such as preparation of taxes and annual report filing. Whatever route you decide to take, remember that good record keeping is vital to the success of your business.
Just like you’d make a note on a calendar for meetings or appointments in advance, you want to do the same thing when filing your taxes. Note important deadlines and times, and stick to them. A little bit of planning goes a long way.