If the tax filing deadline is approaching—or has already passed—the most useful next step is to stop guessing and establish what still needs to be filed, what may be owed, and which records are missing. The right path depends on your return, location, and filing status, but acting early gives you more options than waiting.
If you are not ready by the applicable filing deadline, review whether you can request an extension. An extension generally gives calendar-year individual filers more time to file, but it does not extend the time to pay. Estimate and pay what you owe by the original deadline when possible. If the deadline has already passed, file as soon as possible even if you cannot pay in full, then review available payment options. Consult a qualified tax professional about your federal, state, and local obligations.
On the other hand, if your books are in fairly good shape, then here’s what you will want to do next:
Gather the documents relevant to your return, including applicable Forms 1099 and W-2, business income records, expense documentation, and prior-year information. If a form is missing or incorrect, contact the issuer and compare it with the information available in your IRS account or transcript. A complicated year is a good reason to create a checklist, not to rely on memory.
“If all your bookkeeping is already done and you’re doing your taxes yourself, as a single member LLC or a sole prop on a Schedule C, then I would just go ahead and get them filed,” suggests Drake. Your business books are key for filing successfully because they hold the necessary information to report income and expenses. This means all of your expenses are properly logged and categorized, you have receipts or other documentation to back up your expenses and all of your income is tracked.
Knowing your categorized expenses is necessary for itemized deductions and getting the most out of your tax returns. Tracking your revenue gives you the whole picture of your taxable income for the year, information that is especially helpful if you find you were not provided with a necessary tax document.
If you’re feeling completely lost, it may be time to hire a tax preparer that can file for you. Understand that this is their busiest time of year and at this point, there is a highly likely chance they are fully booked and will require you to file an extension.
All set for this year? Here’s what to do next:
Once you’ve filed your taxes, set aside time to improve the systems you will use for the next year. A small amount of organization now can make the next filing season much easier. Tip: Keep client payment records in one platform. Maroo can organize payment activity and connect supported transaction data with QuickBooks, making records easier to reconcile throughout the year.
Beyond getting organized with the basics, you might want to also consider investing in a bookkeeper, new bookkeeping software or a combination of both. If you don’t already have Quickbooks or some other way of tracking your expenses, now is the time to consider it so that all of your accounting sits in one spot. And if this year is looking super overwhelming with clients and events, enlisting a bookkeeper who can actually keep on top of your expenses may be the necessary next step.
If you expect to owe tax during the year, you may need to make quarterly estimated tax payments. For calendar-year individuals, the IRS generally uses four payment periods with due dates around April 15, June 15, September 15, and January 15 of the following year; a weekend or legal holiday can move the deadline. Review the current IRS estimated-tax schedule and calculate the required amount from current income, withholding, credits, and prior-year tax. A qualified tax professional can help you determine whether estimated payments apply and which safe-harbor rules fit your situation.
If you’re going to hire a tax preparer for next year, consider incorporating that future cost into your business savings plan now. That way, the money is there and ready to go when you need it come next year’s tax season. Prefer to do your own filing? Invest in tutorials or an educational course now to help you get better prepared.
It may not feel like the most urgent tax to-do but getting in the habit of healthy financial routines is SO important. Operational tasks like bookkeeping, filing your business expense receipts, setting aside income for quarterly tax payments and paying yourself may not be the most exciting part of running a business but they’re crucial to your financial health. Our suggestion: Pick one day per week (mark it on your calendar!) to sit down and run through your finances. Come tax time next year you’ll be glad you did.
