If you have engaged in business, you will realize that bookkeeping is very crucial. Your business will hardly survive without a proper bookkeeping. You are likely to end up making a lot of loses if you lack proper bookkeeping in your company. proper book keeping can be referred to as the backbone for the survival of your business. Many loses are likely to occur without your knowledge if proper books of accounts are not maintained. Maintenance of proper books in many business organizations is an alarming issue which have left many businesses languishing in poverty. This is a makeup call for all businesses on board to ensure that they have proper records. In this discussion, it will be necessary to have a look on how to handle accounting and tax issues in your business. This two topic goes hand in hand in most businesses provided the business is registered for tax purposes.
In an organization, there are various types of taxes that are supposed to be remitted to the government. Some of the common types of taxes include the pay as you earn, value added tax, installment taxes, corporate tax among others. For instance, it is reasonable if we try to elaborate some of this taxes for better understanding. The pay as you earn tax is an individual tax which is deducted from an individual’s salary and remitted to the government by the employer on behalf of the employee. In most cases, t is referred to as tax from source. The value added tax is an indirect tax which charged on goods and services at a predetermined rate and remitted before deadline date set by the tax authorities. The corporate tax is a direct tax which charged on companies at a predetermined rate on profits made. There are various advantages that comes with taxation. One of them is the fact that government cannot be able to run its operations without collecting taxes from its citizens.
Some of the public services supported by the government through tax collection include healthcare services, construction of roads, education, security among others. When an organization is registered for tax, it is crucial to engage an accountant who has experience in tax matters. The best alternative for this would be seeking the services of a tax expert. The reason behind this is the fact tax requires proper planning for one to strike a balance. For instance, taking an example of value tax, an individual is required to balance his sales and purchases. Value added tax is all about output tax and input tax. If you fail to have a good plan for your tax, you may end up paying a lot to the government which reduces your profits by a huge percentage. Some of the attributes of an expert that one can hire are going to be highlighted in this discussion. It is necessary to ensure that you hire a person with reasonable experience in tax matters. The person should be updated with the current tax rates and also new tax laws which keeps changing now and then.