Key Difference Between Accounting & Bookkeeping

Most small business owners will agree that managing your finances is no small task. One of the reasons small businesses fail is due to poor cash flow management. If you don’t have any prior accounting or bookkeeping experience, you should consider outsourcing those services. When running a business, there are a lot of financial (bookkeeping and accounting) things you need to know, and the money you will spend on these services could be well worth it in the end.

Many people use bookkeeper and accountant interchangeably; however, these professionals have several distinctions. Some services they offer may overlap, but others are different with the key difference relating to basic functions.

Bookkeeping and accounting are both important and distinct components required to maintain and optimize your organization’s financial health. Choosing the right professional is key to ensuring your business maintains its financial health, so here are the basic definitions of both.

What is bookkeeping?

Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information of your company, known as maintaining the general ledger. These professionals are responsible for keeping day-to-day bank reconciliations, journal entries, and other financial transactions organized and accurate. The work they do for your business provides short-term insights and data that can be used to form and make broader strategies and decisions.

What is accounting?

In many ways, accounting is a continuation of the groundwork that bookkeeping provides. Using records generated through bookkeeping, accounting involves high-level data research, interpretation, and presentation to help generate financial insights and develop strategies and models.

The purpose of accounting is to help organizations create a better comprehension and awareness of profitability, cash flow, tax filing, and financial position. Additionally, the accountant establishes controls to make sure the system is working well. These controls can help detect and deter theft, embezzlement, fraud, or other dishonest behaviors.

Differences in the tasks and functions of bookkeeping and accounting are as follows:

Bookkeeping is the process of recording daily transactions consistently and is a key component to gathering the financial information needed to run a successful business. Their typical responsibilities include:

  • Managing payroll
  • Recording financial transactions
  • Preparing invoices
  • Posting debits and credits
  • Maintaining and balancing accounts and ledgers
  • Ensuring financial data accuracy
  • Communicating short-term finances with relevant colleagues or managers
  • Gathering and preparing data and statements for other professionals

Accountants contribute to the long-term financial strategy of a business and their responsibilities could include:

  • Using bookkeeping data to provide financial analyses and business insights
  • Preparing and filing tax returns and other tax documents
  • Advising business owners and managers regarding financial health, compliance, and taxes
  • Performing financial audits to verify records and statements
  • Adjusting entries and generating financial statements such as income statements, balance sheets, and cash flow records
  • Assisting with business loan applications and offering advice regarding interest rates, terms and conditions

Often small businesses will use an employee with limited accounting knowledge to do their bookkeeping. This employee may also have other duties within the office which could lead to haphazard record-keeping. If you choose to use an employee, we recommend that they are trained in your bookkeeping system and that they have regular communication with an accounting professional.

So how do you know when it is time to call in a bookkeeping service? If your business is growing and you want to focus on that growth, a bookkeeper should be hired to help you keep up with the paperwork. If you have a high volume of daily transactions, employees, and basic recordkeeping needs hiring a bookkeeping company to help would be a good option for you.

An accountant may be needed when you need help understanding profitability, cash flow, financial planning, and business tax planning. A good rule of thumb is if you have more complex financial issues, you may need an accountant.

If you are considering hiring a bookkeeping service or if you are unsure what your small business needs, we suggest you call us at Warren Accounting Group and discuss your situation with us. We can manage the needs of most small businesses, however, if you also prefer to work with your accountant, we can provide them with the reports they will need to take a deeper dive into your business.

Pros and Cons of Outsourcing Payroll

If you’ve been spending hours and hours each month calculating wages, sorting hours, and cutting checks, then hiring a third-party business to handle your payroll may be a good business solution for you. We know that there are many things to consider before you decide to outsource your payroll services with Warren Accounting Group, so we’ve put together a list of pros and cons to help you decide if outsourcing your payroll is right for you.

Pros

When you outsource your payroll, you are able to run your business more efficiently. The time-consuming task of tracking PTO, taxes, and benefits can lead to hours upon hours spent on handling all the aspects of preparing your payroll. When you use a company like Warren Accounting Group to handle your payroll, you can rest easy knowing that your payroll will be compliant with all state and federal regulations. You will receive thorough reports and analytics that make it easier to make decisions and review the performance of your business.

Many people might believe that outsourcing payroll is a huge expense, but oftentimes it actually saves you money. Usually, the cost of running payroll in-house is more expensive than outsourcing it. More so, you can breathe a sigh of relief knowing that Warren Accounting Group uses extreme security measures to protect your employees’ bank account information and data. Having a third-party handle your payroll gives the employee who is typically in charge of the process the opportunity to focus on their other duties. This takes the burden of an extra task off of them and ensures that the process is done correctly without error.

Outsourcing your payroll allows you to be better prepared for upcoming tax seasons, and even gives you more time and energy to focus on the growth of your business.

Cons

Though there are many benefits to outsourcing payroll, there are a few disadvantages to consider as well. It does cost money to outsource your payroll. Also, you don’t have as much control of the process once your payroll has been outsourced. Of course, you still approve every check and submit the information to the company, but you are not spending the same amount of time reviewing your books and accounts as if you were handling the books yourself.

We do recommend completing a thorough review of the payroll company you are considering and asking other businesses who they may be using to ensure you are working with a trustworthy company. Warren Accounting Group works with a wide variety of businesses, and we are happy to provide new customers with references when requested.

It is also important to consider what time of year it is if you are contemplating the switch to outsourcing. It is possible to outsource mid-year, however the changeover could result in some complications or delays. Ideally, the best time to begin outsourcing your payroll is usually at the beginning of the year.

We know that having someone else take care of your payroll could create different issues you are not familiar with, but it can take a load off your plate!

Warren Accounting Group is a full-service firm dedicated to serving clients in eastern North Carolina. We can tailor our payroll services to the needs and requirements of your business using our state-of-the-art software. Let Warren Accounting Group handle your payroll needs, so you can focus on the success of your business. Contact us today to sit down with one of our professionals, https://www.warrenaccountinginc.com/contact/.

Signs You Need to Outsource Payroll

When starting a business, most people think that handling payroll will be a pretty simple task. Really, how hard is it to prepare a couple of paychecks for a handful of employees?

We are hoping to provide you with some insight as to how managing your own payroll could actually take up more time than you think. After talking with clients, we have actually found that a small business owner could spend 15-20 hours each month overseeing their business’ payroll by themselves.

Many small business owners we work with say that outsourcing their payroll to Warren Accounting Group has saved them lots of time, money, and headaches. So, if you are struggling to keep up with the math, having a tough time remembering FICA, FUTA, and SUTA, or you simply cannot stay organized, Warren Accounting Group is here to help.

If you have been thinking about outsourcing your payroll services, here are some signs that you may want to explore your options by giving us a call to see if we are the right provider for you. Outsourcing your payroll may be a game-changer for you, enabling you to focus your efforts on growing your business and generating larger revenues.

Here are some signs it is time to outsource your payroll:

Sign 1: You are making errors.

As an employer, you never want to under or overpay an employee. However, if you are overwhelmed by the amount of paperwork, you may be making mistakes when rushing to complete payroll in the evenings. Plus, it is not just about paying your employees on time, it is also about getting the number of allowances, deductions, and hours worked (among other things) correct. If you make an error, you may have to correct your payroll which could affect your tax filings and could lead to mistakes you will not catch!

When you outsource your payroll services to Warren Accounting, your errors will be reduced because we are doing the math for you. However, if there is an error, we can run a new check and update your tax filings – you will not have to worry about catching things like that!

Sign 2: Missing tax filings/deadlines.

In most states, a typical small business has at least eight separate payroll-related tax filings to make each year: Quarterly filings of IRS Form 941, plus similar state filings. Making sure these are processed on time is just one more burden that sneaks up on small business owners. If you are filing late, the penalties could be costing you money.

In addition to the state and federal filings noted above, you will also owe employees and contractors wage statements at year’s end. W-2 forms for employees and 1099 forms for contractors must be delivered by January 31 for the year prior, and they must also be filed with the Social Security Administration and the IRS by January 31. Again, there are penalties for late filings.

When you outsource payroll to Warren Accounting Group, we will handle all these filings and creating W-2s and 1099s for you.

Sign 3: You bill hourly for professional services.

If you are taking time to do your business’ payroll, that means you have to stop working on something else. If you bill hourly for your time or if you or the number of clients, patients or customers  you see (such as lawyers, doctors, dentists, etc.), it means there’s a very real cost when you stop to run your office payroll.

An example of this would be, if you earn $100 an hour and you spend 15 hours a month on payroll, you are giving up $1,500 in earnings. Of course, your math may vary depending on your billing rate and the amount of time you are currently spending on payroll; however, it should be easy to do a cost-benefit analysis by comparing against outsourcing payroll services.

Sign 4: Lack of experience.

Some parts of your payroll preparation will be easier than others. But if you offer benefits, you will have the added complication of withholding and deducting contributions your employees make. This is where not being very experienced with payroll preparation could cause a problem.

From time to time, you may also get a notice that alimony or child support needs to be deducted under a court order, or one of your employees may have a tax levy against them. If this happens, you are responsible for deducting the monies and remitting to the appropriate party each payroll period. It is another thing most small business owners would rather not deal with or are not prepared to deal with.

Whether you are deducting benefits or wage garnishments, payroll outsourcing services usually make it easy to automate the process. And it will be one less thing you need to learn or worry about!

Sign 5: You simply do not have enough time.

Preparing payroll could be taking away from running or growing your business. Quite simply put, you do not have time to do it all.

One of the advantages of outsourcing payroll services to Warren Accounting Group is that we will take care of all the daily, weekly, and monthly tasks involved with paying your employees and keeping up with taxes. This will free you up to focus on core business activities instead.

While we know there are advantages of keeping your payroll in-house, such as maintaining control, avoiding a vendor expense, and having more flexibility for wages, outsourcing your payroll may be a good option if you want to avoid the complexities of doing payroll, ensure accuracy each time and provide you with the time to focus on your business.

Think you are ready to outsource your payroll? Call Warren Accounting Group today to learn more about our services and to see how we can help your business.

The Key Role Bookkeeping Plays in a Small Business

Bookkeeping plays a critical role in small business. When performed accurately it provides business owners with information on the financial health of the business. Effective fiscal management plays a key role in ensuring the long-term success of a business.

There are many aspects of financial management, but bookkeeping takes center stage. It is often underestimated and overlooked, but accurate bookkeeping enables business owners to make informed decisions and keep their business financially stable.

Here are some reasons bookkeeping is important for a business owner.

1. Business Evaluation

Maintaining accurate financial records is an essential part of bookkeeping. It provides businesses with valuable insights into their current financial situation and plays a significant role in business analysis. The information gathered can be used to identify growth areas and assess the success of business initiatives. Businesses can also make informed decisions about profitability, identifying cost-saving areas, recognizing investment opportunities and assessing liquidity.

Furthermore, bookkeeping aids in strategic planning by providing relevant, up-to-date financial data. For example, it can help business owners track the success of different activities, compare the profitability of various product lines, and more. All of this financial data helps them adjust strategies and continue moving their business toward success.

2. Financial Clarity

Bookkeeping enables business owners to gain a comprehensive understanding of their financial performance. This could help uncover trends in expenses, income, and profit margins. It tracks growth and profits. It can also help businesses identify high-cost suppliers and negotiate better terms and rates, which could increase profitability.

It helps with the assessment of expenses and income, recognition of patterns, and allows them to take advantage of opportunities that can stimulate the business. With an understanding of how cash flows in and out of your business, you can make effective decisions regarding where and when to invest, how to manage bills, and what steps can be taken to improve your payment collection process.

3. Tax Compliance and Reporting

Another important aspect of bookkeeping is meeting tax compliance standards set by the Internal Revenue Service. Poor bookkeeping practices can lead to underpayment or overpayment of taxes, either of which could have serious repercussions such as an audit or hefty fines.

It is also essential for businesses who must comply with governmental regulations, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA). If a business fails to adhere to guidelines, hefty fines, legal repercussions, or even the loss of licenses could be possible.

Bookkeeping helps business owners organize their financial records. This simplifies the process of filing financial statements, tax returns, and audits.

4. Budgeting and Planning

Accurate bookkeeping is crucial for budgeting and forecasting purposes. By analyzing financial statements, businesses can gain valuable business insight. This allows them to identify cost-reduction or where to invest resources to reach their long-term financial objectives.

For instance, analyzing financial statements can assist businesses in predicting their cash flow and planning for upcoming expenses. This enables them to manage their resources efficiently and make wise decisions about their future financial needs.

As you can see, bookkeeping plays an essential role for small business. Business owners have enough day-to-day tasks to distract them, and it is time-consuming to maintain accurate financial records and track business finances. Registering cash flow and managing the company’s books is best performed by a team of professionals while you focus on expanding your client base and recruiting personnel. Warren Accounting Group would like to help you with your bookkeeping and payroll needs. Our experience ensures the highest level of service for our clients.

Bookkeeping Mistakes Small Businesses Make

Small businesses owners often find themselves wearing many hats, one being “bookkeeper”. With so many other things to focus on, bookkeeping may feel minuscule, causing you to make mistakes when managing your accounts. Here we address the 5 most common bookkeeping mistakes, and how to avoid them!

Procrastination

Owning a business is no small feat. Understandably, bookkeeping is often put on the backburner while business owners work to grow their company, overcome challenges, and handle day-to-day tasks. Getting behind on bookkeeping tasks makes it that much harder to tackle when things pile up. Having a day or two set aside each month for bookkeeping tasks is a good way to help you stay organized and reduce the chances of you getting really behind on your businesses bookkeeping.

Getting Rid of Receipts

Many businesses do not keep receipts because the IRS does not require them for expenses under $75. However, it is important to keep track of all transactions and documentation in the event of an audit, and for tax deductions. Consider some sort of filing system – both digital and paper – to keep track of all receipts, so you know exactly where they are whenever you need them. The longer you put it off keeping and organizing receipts, the harder it will be should the day come when you need them.

Reconciling

Reconciling your bank statements may seem like a hassle, but really, it could save you time, money, and headaches. When you take the time to reconcile your statements each month, it gives you the opportunity to check for missed transactions, errors, and overdrafts that could affect your business and your records. When you reconcile, you are able to pinpoint exactly how much money you have and how much you’ve spent, so you are aware of the financial health of your company.

Not Having Appropriate Backup

With digital services taking over, it is important to always have the right backup for all of your records and data. Your information should be accessible to you both on paper and digitally. If you have a computer issue, not having your files backed up could be detrimental to your business. It is recommended to regularly backup your data and keep a paper version of your files of at least 7 years.

Mixing Accounts

A common mistake many owners make is combining their personal account with their business account. This can blur the lines and make it difficult to determine which money belongs to the owner versus what belongs to the business. Mixing the two accounts can also lead to difficulty when tax season comes around. Best practice is to have separate accounts so there is no confusion or concern about either account.

Avoiding common bookkeeping mistakes can be difficult, especially when you are also trying to run a business. That’s where Warren Accounting Group comes in and helps! Our team can take your receipts, checks, statements, and invoices, and provide you with monthly, quarterly, or yearly financials – so you always know where your business stands. Our firm stays up to date on all laws and codes, so you will always be in compliance. For more information about Warren Accounting Group’s services, contact us today for a consultation at 252-827-5259.

How to Reduce Your 2024 Tax Burden

Warren Accounting Group knows how hard you work for your money, and we want to help you keep as much of it as you can. Tax season is months away, but it is never too early to consider ways to reduce your tax burden. Here are 5 ways to reduce your taxable income and keep more of your money.

1. Have a Plan

By planning throughout the year, you are likely to have a better idea what tax bracket you will fall into. If you’ve planned early in the year, you will have time to use some of the tax strategies that will lower your income and benefit you most. And, when you get closer to the end of the year, if you revisit  your strategies, it could help you identify any final opportunities. For example, you may find out you can contribute more pre-tax assets to your 401(k) at year’s end which will help reduce your taxable income.

2. Contribute to Retirement Funds

Contributing to your retirement fund can benefit you by reducing your tax burden in the short term and set you up financially for the future. Your benefits will vary depending on what funds and opportunities you have available to you.

401k: Your contributions are taken out of your paycheck by your employer, so your taxable income will be lower which could reduce the federal taxes you owe at the end of the year. This also benefits you later on in life, as you will have access to your 401k account when you retire.

Traditional IRA: Your contributions to a traditional IRA account are not taxed, lowering your taxable income for the current year.

Roth IRA: Your contributions will not immediately lower your tax bill, but your withdrawal and earnings will be tax-free when you retire.

3. Contribute to a Health Plan

If you are eligible for a health savings plan, contributing to it could reduce your tax burden. Health savings plans are used to pay medical expenses and the withdrawals are tax-free. These account contributions are pre-tax, reducing your taxable income. In addition, any balance left in your health savings plan is rolled over into the next year. So, if you contribute and don’t need to use it, it is available to you year after year.

4. Contribute to a 529

Setting aside money to help send your children or grandchildren to college is another great way to lower your taxable income. In North Carolina, the 529 earnings are free from federal and state taxes, as long as they are used for qualified educational purposes.

5. Make Donations

Charitable donations are deductible, that includes items and cash donations. These types of donations will be itemized on your return, and they can add up. Having a receipt for your donation and making an itemized list of what you donated will help you estimate the value and reduce your taxable income.

If you have any questions about reducing your taxable income, Warren Accounting can help! Our team can review your financial situation and discuss ways for you to take advantage of these and other tax savings opportunities. Contact us today to schedule a meeting!

How to Choose the Right Bookkeeping/Accounting Firm

Who you choose to manage your financials can have an enormous impact on your business. It is important to choose a firm that meets you and your business’s needs.

Here are a few tips on what to look for when choosing a bookkeeping and accounting partner for your company.

1. Industry Experience

Consider industry experience when you are searching for a bookkeeping and accounting firm. It is important to choose a provider who has experience in your specific industry, so you know that your bookkeeping is in capable hands. When deciding, success rate is another key factor to consider, and you want to make sure the company you choose is qualified and familiar with your line of work.

2. Services Offered

To ensure you choose the right company, it is important to make sure they can meet all of your needs. Your needs can change and evolve throughout the years and knowing that your bookkeeping company can grow and evolve with you can save you time and money in the long run.

3. Pricing

You should look at the pricing structure and the flexibility of your bookkeeper. You should want your bookkeeper to match your budget, but ensuring they can scale up their services as your business grows is also important.

4. Communication/Accessibility

Working with someone local vs an online group can make a big difference to your business. When it comes to your business’s finances, it is extremely beneficial to choose a firm that is responsive and dedicated to communication. You want to be sure you are working with someone you are able to speak with should issues and questions arise. Having a dedicated point of contact who addresses your concerns is particularly important.

5. Reputation

As you do your research, it is important to read client reviews and comments to get a good idea of who you will be working with. Make sure you carefully evaluate potential providers, ask for recommendations, and take the time to do your due diligence. Remember it is important that your accounting and bookkeeping provider not only be able to handle your financial affairs efficiently, but that they also become an essential partner for your business.

Warren Accounting Group is equipped to assist you in any and all tax, bookkeeping, and payroll services. We know how important it is that your financials are managed properly, so you can focus on growing your business. Schedule an appointment with us today, https://www.warrenaccountinginc.com/contact/.

Accounting and Bookkeeping Services are the Key to Success

Depending on who you ask, there are many different strategies a business could implement to ensure it is successful. One tried-and-true approach that can always benefit your company is having a quality bookkeeping and accounting firm you can rely on.

Ensuring that your finances are handled properly is a great way to stay on top of expenses, income, and records and keep your business moving in the right direction. Here are some key reasons bookkeeping can help your small business succeed.

1. Accurate Budgeting and Performance Tracking

Budgeting is made easy when bookkeeping is done accurately. It is easy to see the correlation between expenses and profit and prepare for the rest of the year when you know exactly how much money you are spending and saving. Partnering with a quality bookkeeping firm can help you track your performance and monitor the success of your business over time.

2. Allow You to Focus on Your Business

Bookkeeping can be time-consuming for business owners, especially if you are unfamiliar with it. Keeping up to date with changing tax laws and compliance requirements can be a burden on owners.  Working with a bookkeeper can take this burden off your shoulders. When a bookkeeper is responsible for keeping track of your finances, you can focus on the bigger picture which is running your business. Having the bookkeeping duties off your “to-do-list” can be a major relief, especially for small business owners who already have to wear many hats.

3. Prepare for Tax Season

Preparing for tax season becomes much easier when your financial information has been organized and maintained all year. Accurate bookkeeping and accounting can make a huge difference on the time and energy you spend filing your taxes.

4. Maintain Peace of Mind

Not knowing where your business stands financially can cause stress, anxiety, and fear. When working with a bookkeeping firm who is responsible for your records, you will always know where your business stands. This saves you time and money, plus it can keep you from worrying. You can rest knowing your books are in order and your bookkeeper is looking out for you and your business’s best interests.

We understand how many moving parts are involved with owning and running a business. We also know how important it is that your accounting and bookkeeping needs are monitored, maintained, and reviewed. When you work with Warren Accounting Group, you can trust that your records and books are up to date and accurate. Give us a call to schedule a meeting today.

Streamlining Accounting and Payroll Services Can Save You Money

In the fast-paced world in which we live, both time and money are invaluable resources. However, for businesses throughout eastern North Carolina, finding ways to streamline their financial processes is crucial.

This blog explains five ways outsourcing accounting and payroll services can free up your time and save you money, which allows you to focus on what matters most – growing your business.

1. Effective Financial Management

Accounting and bookkeeping services are more than just crunching numbers. The team at Warren Accounting Group have the experience to manage your business finances meticulously. From tracking your business’s expenses and revenue to generating comprehensive financial reports, our team will ensure your business stays on top of its financial game.

2. Precise Payroll Processing

The task of payroll can be tedious and time-consuming, and making common errors could lead to penalties. By outsourcing your business’s payroll to the experienced and dependable team at Warren Accounting ensures accurate calculations, timely deposits, and compliance with tax regulations. Collaborating with Warren Accounting Group for payroll processing not only saves you time but mitigates any risk of costly errors.

3. Tax Optimization and Compliance

Navigating tax regulations can be daunting. When you use Warren Accounting Group you will receive expert guidance in optimizing your tax strategy while maintaining all necessary compliance. When deductions and credits are identified, your business can significantly reduce your tax liability, which leaves more money in your business’s pocket.

4. Cost Savings through Payroll Processing, Accounting, and Tax Optimization

Every hour you spend on non-core tasks like accounting and payroll is an hour you can lose from revenue-generating activities. When you outsource your payroll processing and accounting needs, you are able to direct your time and energy toward business and customer development, which drives growth for your business.

5. Scalability and Adaptability

As your business grows, so do the financial complexities. The accounting professionals at Warren  Accounting Group are equipped to manage your evolving financial needs. Whether you are restructuring or expanding your business, their expertise will ensure your financial strategies will remain aligned with your business’s goals.

Time and money are both priceless commodities for businesses. When you outsource your accounting and bookkeeping services you are not just making a practical choice, but you are making a strategic investment in your business’ future.

If you are seeking efficient accounting and payroll services in Rocky Mount, Tarboro, Wilson, Pinetops or other cities throughout eastern North Carolina, Warren Accounting Group is your partner in financial success. By enlisting professionals like Robert Warren and Bonne Rose Allen, you are ensuring your business’s financial health and growth. Contact us today by calling (252) 827-5259.

Tax Extension FAQs

Tax Day is right around the corner – and it can sneak up on you quickly. Don’t get caught off guard this tax season! Filing for a tax extension can buy you some time to thoroughly review your taxes and file with complete accuracy without being in a rush. Here are some frequently asked questions regarding tax extensions:

1. What exactly is a tax extension?

Filing for a tax extension means you are requesting extra time to file your tax return to the IRS—but you are still required to pay your taxes by Tax Day, April 15th. To file for an extension, submit Form 4868 to the IRS by April 15th. If your extension is approved, your new tax filing date is October 15th.

2. Pros of tax extensions?

Filing for a tax extension can benefit you in many ways. First, simply having more time to go through your documents and accurately providing your tax information is an advantage. Also, you can avoid paying late filing fees, save on tax prep fees, and you’ll likely have more time to seek a potential refund. If you can’t file your taxes on time, it is best to file for an extension.

3. Cons of tax extensions?

There are a few “cons” that come with filing for a tax extension. Taking longer to file your taxes means you must continue stressing about filing them until it gets done. If you are filing for a tax extension – you still must pay off your taxes by April 15th. If you are looking for an extension on paying your taxes, the IRS offers payment plans.

4. What are some reasons to file a tax extension?

There are many reasons to file for a tax extension. Maybe you don’t have all the records and documents you need to file by April 15th. Or maybe you are working on changing your retirement plan? You may even have an emergency in your life that prevents you from filing on time. Whatever the case may be, filing an extension allows you more time to file your taxes.

5. Is filing for a tax extension “bad”?

Filing for a tax extension is not considered a bad thing. A crucial part of filing taxes is providing correct and accurate information to the IRS. Filing for an extension allows you to prepare your taxes and information correctly, and despite what many people believe, filing for an extension does not increase the odds of you getting audited.

It can be a great way to save yourself from stress and ensure you are providing correct information to the IRS. Tax season can be chaotic, demanding, and tense. If you are still struggling to decide whether you should file for an extension, contact Warren Accounting. We can help with individual or business tax preparation and provide you peace of mind.