When urgency knocks—whether it’s a bank, an investor, or another financial institution asking for your tax return—and you don’t have it ready, the pressure can indeed feel overwhelming. You might find yourself suddenly scrambling to figure out how to get your taxes done quickly, and what might slow things down.
However, preparing your tax return quickly isn’t just about speed—it’s about having the proper documentation and avoiding common pitfalls that can bring the process to a halt. The best strategy to ensure a quick turnaround on tax returns is to start the process early each year, even before being prompted by external needs such as loan applications or investor requests. Whether you’re facing a tight deadline or just want to be prepared, this article will walk you through what you need to know to get your tax return done as quickly as possible—and how to avoid the rush next time.
Why Timely Tax Returns Matter
There are plenty of reasons you might need a tax return fast:
- Applying for a loan or line of credit: Banks often require tax returns to verify your financial stability.
- Securing investors: Potential investors want to see your financial track record before committing funds.
- Meeting legal or contractual obligations: Some contracts or agreements require up-to-date tax filings.
However, speed should not compromise accuracy. Stakeholders use these documents to assess your business’s health. A rushed, imprecise return can introduce doubts about your financial management capabilities.
Balancing Speed with Preparedness
The key is not just to speed up the tax return process but to be prepared well in advance. By organizing your financial records early and maintaining them regularly, you ensure that your tax preparations are not just swift but also accurate. This proactive approach aids in better financial forecasting and decision-making throughout the year, positioning your business as reliable and well-managed.
What Can Stand in the Way of Getting My Tax Return Finished Quickly?
The time it takes to complete a tax return can vary significantly, but being well-prepared can streamline the process considerably. Rather than focusing on specific timeframes, understanding what can expedite or delay the preparation will help you better manage the timeline.
Several common issues can delay your tax return, including:
- Books Aren’t Being Kept Correctly (or at All): If your bookkeeping is a mess—or nonexistent—your CPA will need to organize and reconcile your records before they can even start on your tax return. Additionally, providing your CPA with a large volume of unnecessary receipts can further delay the process as they sift through irrelevant details to find the pertinent information.
- Retroactive Changes to Prior-Year Books: Made changes to last year’s books after filing your tax return? This can create discrepancies that must be resolved before your current return can be completed.
- Waiting on K-1s: If you own a partnership or an S-corp, chances are you'll need to report a Schedule K-1 from your business. You'll receive it when your business's tax return is complete, but until then, you'll have to hold off on filing your individual return.
Efficient Preparation and Review
Once your documents are in order, the actual preparation and review of the tax return commence. How quickly this phase progresses largely depends on the complexity of your finances and the quality of the document organization. Your tax preparer will input data, apply deductions and credits, and ensure accuracy, followed by a thorough review with you to address any concerns and confirm details.
Proactive and Timely Actions
- Be Organized: Maintain clean, accurate, and easy-to-navigate financial records. Disorganized books are one of the most common reasons for delays.
- Get in Line Early: Contact your tax preparer early in the year to start the tax preparation process. This avoids the delays that often come with the peak tax season rush.
- Communicate Proactively: If you’re awaiting certain documents, like a K-1 form, let your tax preparer know ahead of time. This allows them to 'save your spot' and begin work promptly once all documents are available.
- Be Responsive: Quick responses to any follow-up questions from your tax preparer can significantly speed up the process. Delays in communication often lead to delays in finalizing the return.
Consider Expedited Services
If you're under a tight deadline, inquire about expedited services. Some tax firms offer faster processing for an additional fee, which can be a worthwhile investment if you need your tax return completed urgently. However, the effectiveness of these services still largely depends on the preparation and organization mentioned above.
The bottom line
At DiMercurio Advisors, we specialize in helping small business owners confidently navigate tax season. Whether you need a fast tax return, back bookkeeping, or just a second opinion, we’re here to help. Let’s get your tax return done right—and on time.
