2021 Estimated Tax Payments Due? Get your Financial Review Ready in time before September 15th. Here is Why!
You probably know the old saying “the devil is in the details.” In bookkeeping, those details are in your books, whether they are online or on paper. Those small details can get you, but only if you rush to finish everything at the last minute.
That is why if you send quarterly reports for review to your bookkeeper, you need to give them time ahead of the next Corporate and Estimated Taxes deadline, and here is why!
Third-quarter estimated tax payments (IRS Form 1040ES) are due for individuals and trusts that report on a calendar year-end.
In addition, C corps that report on a fiscal year ending in March, June, September, or December may have an estimated quarterly payment due as well.
Don’t forget to submit your forms, as there are penalties and charges for late filings. That sounds like a lot, right?
Next 2021 Estimated Tax Payments Due are on September 15th
The next deadline for estimated 2021 taxes is on September 15th. You may be required to submit Forms 1120, 1120S, and 1065 by September 15th, 2021, too.
However, don’t get tricked! Your accountant and bookkeeper need time to review your documents, and keep in mind that you might not be their only customer if you outsource your bookkeeping and accounting. It would help both of you if you allow them plenty of time.
Cack the IRS website for more information.
Due Dates for 2021 Estimated Tax Payments
|Payment||When Income Earned in 2021||Due Date|
|1st Payment||January 1 to March 31||April 15, 2021|
|2nd Payment||April 1 to May 31||June 15, 2021|
|3rd Payment||June 1 to August 31||September 15, 2021|
|4th Payment||September 1 to December 31||January 18, 2022|
What is the ideal deadline you should keep in mind when submitting bookkeeping for a review?
It is simple. Provide your accountant and bookkeeper(s) with reports following this schedule: the August 15th deadline is the latest in order to get your financials reports done in time for the September 15th Corporation TAX return filling, and August 31st for your Estimated Taxes.
You might be asking why this is important? So, let’s dive into it.
Not Sure When the 2021 Estimated Tax Payments Are Due?
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Keep track of your financial transactions before 2021 Estimated Tax Payments Due
All companies need to keep a record of their financial transactions. That’s why bookkeeping and bookkeepers are so valuable. Ask yourself, are you able to tell whether your company makes profit or loss without accurate records? If you don’t track your logs every day, once a week, or once a month, and present reports of profit and loss to a bookkeeper two days before the estimated taxes deadline, you don’t give them a chance to check this thoroughly. Remember that you are not the only client they might have.
That’s why when you submit your reports to the bookkeeper earlier, they can put you on their schedule. Thirty days in advance for Corporate Taxes and fifteen days for Estimated Taxes seems like a lot, but if you make a mistake or don’t complete all the necessary information, it gives you time to finalize it and make corrections.
What is bookkeeping?
Bookkeeping is the systematic way in which businesses trace their business deals.
Bookkeeping requires the record-keeping of that financial data into an online or offline accounting system.
Accounting is the whole structure of reports and systems used to record, classify, and summarize information about a business’s financial transactions.
Ensuring that reports in your systems are ready on August 15th for Corporate and 31st for Estimated Taxes gives you estimates that equip you for what is ahead. That means if you haven’t tracked something in your transactions, you get a chance to know it before your Estimated Taxes filing is due. Take advantage of that and don’t wait until the last minute.
Remember that Corporate Taxes and Estimated Taxes are filed this year on September 15th.
What’s better, easier, and more accurate?
Companies today use online accounting methods to keep their books. It would be best to consider using one of these methods rather than maintaining your books on paper. You’ll find that your bookkeeping takes less time and is seemingly more accurate with an electronic system.
In addition to improving accuracy and decreasing the time it takes to do your bookkeeping, digital accounting makes design reports easier.
Besides, you can use these reports to make sales decisions, as your accounting is stored online with detailed information about every transaction. Most bookkeepers and accountants will suggest QuickBooks.
Imagine what decisions you can make for your business if your reports are ready 30 days before your Corporate Taxes and 15 days before filing Estimated Taxes are due. Remember that you can always rerun your reports in QuickBooks, even two days before filing.
Tracking sales to know how much to pay in taxes
Individuals and companies want to know how well their sales are performing. If your reports and transactions are in place by August 15th (Corporate Taxes) or the 31st, (Estimated Taxes), you will know how much tax you expect to return or how much of a loss you had. Besides, it gives you some time to make some decisions, and perhaps even more sales. Thirty or fifteen days might not be a lot, but it could be an excellent motivation for improvements in your company.
You can also keep an eye on your sales goals as often as you think it is essential, whether that be daily, weekly, or monthly instances.
With online systems like QuickBooks, you can use the information and monitor purchases, review commissions, and track inventory. All three components are essential to gauge the achievement of the sales of your goods.
Basic Bookkeeping and Things to Remember
Companies, organizations, sole proprietors, and LLC businesses must release quarterly reports within 45 days of the quarter’s end. Companies with holdings over $75 million must file more quickly. If you are not there yet, don’t worry for now.
In addition to the three fundamental financial statements (the balance sheet, the income statement, and the record of cash flow), the company must state whether a CPA has audited or analyzed data.
If you use a digital accounting system to do your books, you don’t need to close your notebooks just yet. You can still run a series of reports to confirm that all the information in the computer accounting system matches what you have on record.
If you don’t know where to start, please schedule a free consultation with Simplified Payroll and Bookkeeping. You can find out quickly where to start and how to proceed with your bookkeeping.
The next deadline for Estimated Taxes is on September 15th, as well as for Corporate Taxes. There’s plenty of time to get ready, but make sure that you don’t leave it till the last minute. Check with the IRS website for 2021 Estimated Tax Payments Due dates.
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