6 Common Mistakes To Avoid For A Proper Tax Management

Being an entrepreneur, one of the utmost aspects which you consider is the related profit of the business. Isn’t it? Of course, hard work along with accurate decisions instigates the much needed success for the businesses.

However, this is just one sided facet. There are various factors which when implemented drive a business to the path of progress. Some of them include tax and accounting procedures. You would indeed like to make your brand financially secured right? Well, so these two facades are something which provides a robust economic support to the businesses. Hence, you need to be a bit considerate about these elements while running a campaign.

A keen observance is what you need to keep up with the accurate records for the company thereby managing a consistent workflow throughout the year. Ignoring these terms could result to some severe penalties which obviously you won’t like to be a part of. Further, these penalties embroil the entities like misreported income and employment figures which could be a blow to your hard earned reputation.

“So where do these issues originate from?”

This could be a query popping to the minds of various entrepreneurs. Believe it; some of such issues could be found creeping within your organization. Yes! It’s true. Regulatory and organizational struggles, poor data entries, fault number updates of the enterprise systems, improper tax fillings and financial statements are some of the reasons which come out all of a sudden for the downfall of the companies.

Thus, in order to get the desirable output from the organization, you need to be a bit attentive regarding the appropriate operation of your business. Opting for GC Accountants could prove out a favorable solution for your firm. Additionally, you also need to avoid some of the features from your campaign to stay away from tax penalties. Just take a look.

  • Weak Maintenance of Top Tax Staff- One of the reasons behind this factor is the under trained or low experienced staff which strive to keep updated tax records. This unfortunately leads to the accounting errors. Hence, whatever may be the size of the campaign, you ought to employ some experienced staff for proper management of your taxes.
  • Maintaining Files in Personal Devices with Financial Information- Implementing trendy methods like Bring Your Own Device or BYOD could be advantageous to the company, but at the same time they could be risky to your data security. Evidently, you should stick to more stringent file supporting systems along with regulating file sharing policies. This would help you to protect your important tax and account information.
  • Using Unprotected Wi-Fi Networks- Why would you carry a source device if you could access Wi-Fi at the place. No doubt, this is an added convenience, but while you are working suitably with your files, you never know when your data has been exposed. Better, switch to remote access policies with virtual private network for an effective and safe data work.
  • Shortage of C-suite Information- There has been various instances where staff of the companies overlooks various factors including sales growth and product development. Consequently, C-suites which are unaware of the importance of these attributes are at continuous risk regarding their operation.
  • Ignoring Tax Tool Investments- Using cheap tax tools might shield you to have the complete information about your properties or even the turn over either monthly or yearly. This creates hindrance while conducting pre-funding due diligence. Therefore, always invest upon genuine tax tools to have an effective financial control for your enterprise.
  • Deletion of Custom Excel Formulas- This is a fact that employees in any organizations share the same excel sheets while working on the projects. However, there are times when these sheets containing information may get delete from the systems. At such an instant, you find no option but to invest time to get the crucial data back again.

To summarize, all’s well that ends well. Managing tax and account records is not a big deal. The only thing which matters is that how effectively you take the steps for the proper management of your taxes. Furthermore, avoiding the aforementioned issues could help you a lot in organizing the financial growth of your company.

Author’s Profile-
Morna is a professional GC Accountant and a part time blogger. Being in this field since many years she holds extensive experience thereby providing methods to organize tax and account systems for the businesses.

Views: 221

Comment by Marcus Jensen on August 23, 2015 at 3:26pm

A very informative post Morna!
Tax management can get really tricky, and foremost it's quite easy to lose yourself in the abundance of different files if you don't take proper evidence.

Comment by Moses Lynch on Monday

Good tips! From my personal experience I can recommend not to save money on this and use professional help. Especially since you can use online bookkeeping services for business in Singapore like https://osome.com/sg/accounting-services-singapore/ just choose relevant package and you will get help very fast!

Comment

You need to be a member of Small Business Bonfire to add comments!

Join Small Business Bonfire

About the Small Business Bonfire

The Small Business Bonfire is a social, educational and collaborative community founded in 2011 for entrepreneurs that provides actionable tips and tools through a small business blog, a weekly newsletter and a free online community.

Subscribe to Our Newsletter

Members

© 2019   Created by Alyssa Gregory.   Powered by

Badges  |  Report an Issue  |  Terms of Service