Starting a business is an achievement for all entrepreneurs and definitely its challenging also. Small business owners face tax challenges more often than large business owners. Tax issues can be tough but if you handle them correctly then you might enjoy the end of the year. The year end is not holiday for business owners it’s the closing period meaning keeping the finances in a row for tax season.
Speaking of tax issues, it’s a good idea to have a financial advisor who could keep a track of all the financial activities in the organization. This could give you a break from keeping a track record of all the money transactions to focusing of organization productivity. Here are some issues you should bring up to your financial advisor to overcome tax challenges in your business.
- Transparency in calculating Revenues
Many business owners hide their yearly revenue figures thinking that would cut them some slack from high taxes, well first of all this is illegal and a misconception. Overestimating or underestimating your revenues is not the real challenge here. The real challenge is keeping a track of all your expenses having receipts of any expenditures as if you have no proof of deductions then the IRS might take strict actions against you. - Having track of Deductible expenses
For small business owners you need to know what deductions you are eligible for. In order to get through that you need to keep a track of your receipts or save them. For this job its better suggested to have a financial advisor. - Miscalculating your employees on payroll
Having employees on payroll means that you need to pay payroll taxes. Many organizations avoid paying taxes for labor staff and they pay them without them listed or registered as employees in their data. On the other hand, some small business owners cut the taxes from the pay of the employee and this is communicated to the employee also. - The Affordable Care Act
If your business is close to the 50-employee threshold then ACA is a forefront of business tax agenda
Tax Law Firm and Tax Planning Services
Since there are many small businesses on the rise every day, there is a need of a proper tax agent or a finance advisor. It is better to leave the work of cash flow in the hands of a tax advisor. There are many tax firms that provide advice about tax legislation. As the tax laws are changing all the time the tax advisor provides all possible tax solutions.
A small business tax advisor handles the book keeping and prepares financial documents which include profit and loss statement and calculating monthly revenues of the company. They handle all financial information running in your business. In the end of the year they prepare tax reports to ease the burden of tax payments on you. It’s very advisable that you hire a tax advisor for your small business so that you could focus on the productivity and goals of your business.
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