Business owners are faced with the challenge of making profits in order to survive. The thought of having to pay taxes from your sales turnover can be very disheartening. However, this is a government regulation that cannot be avoided. Tax evasion is a serious crime that can actually run you out of business before you know it. It is therefore important to identify a qualified tax accountant to assist you in tax management.
The CPA accountant will must be paid a consultancy fee. This professional can come in at the close of every month to work out the business taxes. However, in order to make the process easy for the tax accountant, below are certain tips that one should follow.
Keep business recordsAny business that is run without business records is bound to fail. Record keeping is a key element of any business whether small or large. Income, purchases and expenses should be clearly indicated and receipts and invoices attached. With this information in place, it becomes easy for the CPA tax accountant to come up with the real monthly tax figure.
Update the books
Books of accounting have to be constantly updated so as to sure that the information is free and fair from any manipulation. There are those who choose to use accounting software packages. The data entered in these programs should be very accurate. Source documents should also be kept intact as they are vital when it comes to conducting the actual audit.
Income and charitable contributions
There are certain situations when one expects to receive income at the close of the month of December. Such income can be deferred to January of the coming year in a bid to benefit from an additional four months grace period. The deferred incomes should largely depend on your profit margins for that particular financial year. In case you have charitable contributions to make in the coming year, try to send them out in the present year and ensure that you pick the receipts.
Dealing with purchases and bills.
Come up with a projection of the amount of money that you intend to spend in the initial quarter of the year. Such purchases can be made prior to closing the year. Any bills should be offset early enough in case the cash flow will permit this.
Write-off obsolete goods
The particular accounting system that you use will determine whether it is safe to write-off all damaged and obsolete goods at the close of the year. It is also advisable for the CPA tax accountant to assist you in making retirement contributions.
If the following tips are followed, huge savings may become imminent after the tax consultant is through with the accounting and taxes remitted to the government. Since in business every cent counts, try to utilize the above mentioned tips to make savings.
Notably, these tips are applicable for both small and large business enterprises. It is worth noting that even small businesses require the services of a highly qualified and experienced CPA tax consultant.
Learn more about the topic in this article at Desert Rose Tax & Accounting.
Joseph Rose is a CPA in Tucson, Arizona. Mr. Rose is the president and founder of Desert Rose Tax & Accounting which specializes in small business accounting and taxes.
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