March 15 Isn't the Real Deadline You Missed

For many business owners, tax returns are due March 15th. But the federal government, in their "kindness" to business owners, allows a 6-month extension — so the actual due date becomes September 15th. As we get into the early days of September, that due date starts looming large.

Accountants all over the country are sitting down with business clients and creating financial statements so the tax return can be prepared. This is when the business owner finally gets to close out the prior year. Does anyone see the problem here? In August and September — eight months after the end of the tax year — business owners are finally learning what kind of profit or loss they had last year. All they've had before now is a feeling, and that feeling has been running the business all year long.

Lease renewals. Hiring and firing. Equipment purchases. All of it decided without knowing how it would affect the tax return. But what's worse — they made these decisions without knowing if they were needed, or effective.

The answer isn't getting the information ready by the due date. The answer is having it before the end of the year, so true tax planning can happen. March 15 isn't the real deadline you missed. December 31 was.

How much can we save with that piece of equipment? Will the employees get a bonus or profit sharing? Every business decision made throughout the year could have been assisted timely, accurate information.

The best part — when it comes to tax time, the information is already there — no need for the yearly extension.