Is Business Up? File your Tax Return Now instead of Later
Sure, you can extend your business and personal tax returns with essentially no excuses until much later in 2010. Here is why that may be a bad plan!
Small business lenders look to recent financial information to support their loan decision. If 2008 and 2009 were down years for your business, they need evidence that things are looking up!
So even if you would normally put off filing to hold off on any additional tax due, rethink that strategy!
By filing the 2010 return, some lenders will average 2009 and 2010 instead of 2008 and 2009. And if the average is a bit weak because 2009 was a challenge, the fact that 2010 is on the rise may be the compensating factor the banker needs.
If 2011 is looking good so far be sure to include year-to-date financial statements as current as possible. And consider having them CPA-prepared to add more weight.
Business lenders want to make business loans.
- Give them the most up-to-date information when things are looking up.
- Bring to their attention any outside credible evidence of good news in your industry or local economy.
- Tell them the story to go with the numbers. What are you doing that is working? What have you quit doing that was not working?
