Managing a business, even without considering the necessary considerations to prepare tax returns, is a difficult and complex task. According to experts in the field of taxation and management, the cooperation of company managers with their accountants and consultants should not be limited to when the time comes to prepare tax returns; Rather, it is better for this cooperation to continue throughout the year. Ignoring this advice and making financial decisions without seeking the opinion of an accountant or financial advisor increases the likelihood of a business losing money in the long run. In this article, we will talk more about the benefits of consulting with such people and provide you with important points. tax accounting We will make sure that the attention of small businesses to them will make them more profitable and grow their business. be with us.
9 important points in tax accounting
1. Pay attention to the skills required of a tax accountant for small businesses
The Company Accountant’s duties are not limited to providing financial statements or tax returns. If he is not able to go beyond these tasks based on his knowledge and experience, it is not a good choice for small businesses.
Track the company’s revenues and expenses, ensure that there are no problems in financial flows and monitor net and gross profits [منظور از سود ناخالص، کل درآمدهای شرکت است و سود خالص، به درآمد باقیمانده، پس از کسر هزینهها و خرجهای مختلف اشاره میکند], Is one of the tasks and capabilities for small business accountants. Therefore, it is better not to limit the cooperation with the tax accountant to the time of preparing the tax returns, and to communicate with him from the very first day of starting the business and use his advice.
Although this is one of the most important aspects of tax accounting, many small businesses are unaware of its importance for the sustainability and success of their business.
۲. The importance of coordinating the information submitted to the tax administration about the revenue generated
In addition to the report you receive from the company’s earnings, the IRS also receives another report: The second report, usually with Audit of companies will be provided. Another important point of tax accounting is the consistency and consistency of the information contained in these two reports. Lack of this coordination damages the reputation of the company in the eyes of the officials of the Tax Affairs Organization. This can have unintended consequences for the business.
3. Maintain adequate financial records
Maintaining adequate financial records throughout the year is another important point of tax accounting that ensures the accuracy of the tax statements provided. Inadequate financial records can be suspicious or, worse, expose your business to “audit risk”.
Investing to provide one of the basic software Accounting for Business, Is a solution that experts believe prevents such issues and problems from occurring. Using these softwares is not difficult and complicated (they are user-friendly), they are cheap and they keep your information about the income and expenses of the business up to date.
4. Separation of personal financial accounts from working financial accounts
Conflicting personal expenses with business expenses, no matter how accurate and credible your company’s expense statement is, is a problem that will cause trouble and even make it possible for the relevant bodies to review your personal financial accounts. It is recommended that you create a separate financial account and credit card for your business and use it to pay all related costs.
5. The Importance of Understanding the Difference Between Net and Gross Income
If the cost of producing a product is more than what you owe the consumer, it is clear that you are losing money: no matter how much you sell. Small business owners are often unaware of the difference between net and gross income and do not take into account the difference that can have unintended consequences.
Consider a hypothetical business that costs 200,000 tomans to produce each product and sells each of these products at a total price of 250,000 tomans. The gross income of this business will be 50,000 Tomans for the sale of each product. But after considering other common expenses (payment of wages or salaries, rent, etc.), the net income may reach 20 or 10 thousand tomans. Therefore, knowing the difference between net and gross income is one of the main and important pillars for achieving profitability and business success.
6. Accurate and correct identification of the type of commercial company
Accurate and accurate identification of the type of business company is another important point of tax accounting. Ignoring this may lead to overpayment of taxes. Depending on the type of business you are registering, different taxes will be levied on your business. Some types of commercial companies include: joint stock company (private or public), limited liability company, joint stock company, joint stock companies and non-joint stock companies and cooperative companies. Seeking the advice of an experienced accountant or financial advisor when determining the type of business can be helpful.
7. Proper management of salaries paid to employees
Whenever possible you should have all four of these components in place for launch to maximize profits. Sometimes small businesses turn to less reputable companies in order to save costs and put themselves at risk of depositing taxes on their employees’ salaries instead of paying taxes on them. The disappearance of wage tax is one of the consequences of cooperating with such companies and puts small businesses at risk of inability to pay wage tax.
The IRS usually reviews this type of tax every 3 months (at the end or beginning of each new season).
8. Seek the opinion of an accountant or financial advisor about the work plan
An experienced accountant or financial advisor can give you good suggestions on how to grow your business. There are situations in which seeking the opinion of such a person will be helpful in advancing them better and more effectively; Suppose, at the time of determining the amount to be used for retirement savings, or when not receiving the additional benefit or bonus resulting from a particular business transaction at the present time, it is considered as receiving a larger amount this year. Sometimes you may be hesitant about something like buying or renting a commercial property to start a company; An accountant or financial advisor can also help you in such cases and convince you, for example, that buying a commercial property will reduce your costs in the long run.
9. Maximize the rules and benefits of investing
Sometimes buying a property, commercial land or special equipment will give you a significant discount. Familiarity with the accountant or financial advisor with such rules and benefits will play a significant role in reducing costs and maintaining capital for the business.
As you can see, most of the important points of tax accounting are related to seeking advice and consulting with an experienced accountant or financial advisor. From coordinating documents and information registered in the company to maintaining financial records and even specifying work plans and scheduling, all of them are among the cases in which the use of knowledge and experience of such people will be effective and efficient. Of course, as an employer, you also have a duty to keep your information up-to-date and, as far as possible, to be familiar with the rules and procedures of the tax authorities. Together, they ensure the success and longevity of your business.
Please let us and your readers know if you have a comment on the subject or something else that comes to mind.