Bench Closes Before Tax Season

CNAES

You need 3 min read

·

Post on Dec 28, 2024

30 visitor like this post

Share

Bench Closes Before Tax Season: What You Need to Know

Tax season is a whirlwind. For many freelancers and small business owners, Bench, a popular bookkeeping service, plays a crucial role in preparing their financial information. So, the news that Bench closes its books before the tax season officially begins can be quite alarming. This article will explain what this means, how it impacts you, and what you can do to prepare.

Understanding Bench's Closing Period

Bench typically closes its books for a period before the official start of tax season. This closure isn't a shutdown of the entire company, but rather a temporary halt to certain services, primarily the processing of new transactions and the generation of updated financial reports. This closure allows Bench to focus on finalizing financial reports for its clients, ensuring accuracy and compliance before the tax deadline. The exact timing of this closure varies each year, so it's crucial to check directly with Bench or monitor their communications for the specific dates.

What Does "Closed Books" Mean?

When Bench closes its books, it means:

• No new transactions are processed: You won't be able to add new income or expense entries during this period.
• Reports may be delayed or unavailable: Generating new financial reports, such as profit and loss statements or balance sheets, may be delayed or temporarily inaccessible.
• Support response times may be affected: While support remains available, response times might be longer than usual due to the increased workload.

How This Impacts You as a Bench Client

This closure directly impacts your ability to prepare your taxes using the most up-to-date financial information from Bench. If you rely on Bench's reports for your tax preparation, you need to plan ahead. Failing to do so could mean:

• Delayed tax filing: You may not have the final reports needed to file your taxes on time, potentially incurring penalties.
• Inaccurate tax filings: If you use outdated information, your tax return could be inaccurate, leading to further complications.
• Increased stress and workload: The last-minute scramble to gather and organize your financial data can be incredibly stressful.

Preparing for Bench's Pre-Tax Season Closure

Proactive planning is key to minimizing disruption:

• Monitor Bench's Communication: Pay close attention to emails and announcements from Bench regarding their closure period. Subscribe to their newsletter or check their website regularly.
• Submit all transactions early: Ensure all your financial data is inputted into Bench well before the closure period begins. Aim for at least a couple of weeks prior.
• Request your reports in advance: Download all necessary financial reports from Bench before the closure period. This will ensure you have the documents you need.
• Familiarize yourself with your data: While Bench handles the bookkeeping, understanding your finances is crucial. Review your data regularly to identify any discrepancies or questions.
• Have a backup plan: Consider having alternative methods to access your financial data, such as maintaining your own spreadsheets as a supplementary record.

Conclusion: Proactive Preparation is Key

Bench's temporary closure before tax season is a necessary step to ensure accuracy in its clients' financial reporting. However, by understanding this closure and taking proactive steps, you can mitigate potential disruptions and ensure a smoother tax filing process. Remember, effective communication with Bench and careful planning are your best allies during this busy time of year. Don't wait until the last minute – prepare ahead!