Most business owners encounter with several challenges of realizing considerable revenues in order for their businesses to survive. The idea of paying taxes from their sales turnover can seem to be disheartening to them, thus forcing each of them to look for the tax payment plan to manage their taxes. However, it is actually a regulation of most governments that cannot be ignored whatsoever. Evasion of tax is a very serious crime, which can in fact run individuals out of their businesses without realizing it. It is therefore very important for any business owner to identify a professional tax accountant to help them in all matters related to tax management. Let’s see the tips of professional business tax planning.
However, having a qualified accountant is not enough by itself. Therefore, to make the whole process much easier for your tax accountant, the following are some tips that can be of great assistance.
1. Always Update Your Business Books
Accounting books must be updated frequently to ensure that all information recorded in them is fair and free from any sort of manipulation. Some business owners may decide to use certain packages of accounting software. They should be therefore ensuring that any data entered in these applications are accurate and correct. Source business documents are confidential and they should always be kept intact in a safe place, as they are very essential during actual audit.
2. Keep all Business Records in an Organized Manner
Any type of business that operates without records is definitely bound to fail. Record keeping is actually the main element of all types of a business. Purchases, expenses, and income records should be neatly kept in their respective files where invoices and receipts are also attached. When this information is intact, it makes things easier for any tax accountant to perform their duties in an effective and convenient way.
3. To Deal with Bills and Purchases
It is also very important to make your own projection of the amount of money you will incur in the first quarter of the financial year. Such kind of purchases should be made prior to the end of the year. All bills that come into the business must be offset earlier enough if the cash flow will allow that.
4. The Charitable and Income Contributions
There are some certain occasions when you can expect to receive a certain amount of money towards the end of the month and unfortunately, the money is deferred to the next month in order to benefit from the grace period of additional months. This differed income should widely depend on an individual profit margin for the current financial year. Similarly, if you have any charitable contribution to make in the following year, it is advisable to do so the current year as well as ensuring that you get all receipts.
5. Write-Off all Obsolete Goods
The specific system of accounting that a business uses will always determine whether it is quite safe in writing off obsolete and damaged goods at the end of the financial year. It is also recommended for a tax accountant to help the business owner to make any retirement contribution available in that particular year.
If the above-discussed tips are properly followed and adhered to, and with a proper tax payment plan the business operations can run effectively and smoothly.