Entrepreneurs often do not give required attention on tax accounting and other financial details. Lack of an effective accounting system can prove painful during the annual tax audits. With such attitude, lot of things can go wrong for instance, numbers can be misinterpreted, Bills are misplaced, and minor expenses are ignored. It can make your final account sheet a mess and put your business into a tight spot. Hence, handle money especially the taxes can be very beneficial in the end. This helps a business to work smoothly and earn better revenue.
Check out few auditing tips for accounted as well as business owners: –
– Planning your expenses.
Make a note on your calendar about any major but usual financial expenses. Identify moths in with you company profits graph goes up or down and plan the expenses accordingly. This prevents your business budgets from clash with the office needs.
– Tracking your expenses.
A credit card an effective way of keeping track of your expenditures. Using credit card for your business expenses can help you during audits and get some tax write-offs. No filing of receipts as credit card provides you with a detailed record of your expenses.
– Track your deposits.
Make a note of various bank deposits such as loans, sales revenues etc. This helps in avoids tax payment on money that are not income.
– Preserve funds for tax payment
The IT department of India penalizes on delayed tax payment. Hence, it is advisable to keep a portion of fund for yearly taxes. Keep a note of the tax payment deadlines and make your tax payment especially the payroll taxes with the due date.
– On time payment
The unpaid tax payment can be disastrous for any business and can adversely your company’s revenue. Being listed into the defaulters list can be hamper your brand prestige.
Hire a finance professional to keep track of your bills or expenses and create your deadline before the original due date to make sure on time payment.
During such times many business owner generate an invoice and consider it being a solution, which does not happens. A delayed tax payment should be considered as a loan and eventually it affects your cash flow.
I hope this blog has been helpful in managing your tax payment. So, all my fellow accountants or bookkeepers “Save taxes and be happy.”