Shifting the focus to creating value in your business over trying to fix tax compliance.
Business Tax
Tax, especially business tax, is an important part of distributing wealth and maintaining a healthy public financial environment. It is essential for businesses to be tax compliant. This means adhering to tax laws and regulations by paying taxes accurately and on time, but this doesn’t have to be difficult.
What is tax compliance, actually?
Tax compliance simply means keeping up with the tax laws which are important to keep the economy growing, specifically the programs and services. Governments across the world provide incentives to businesses who address government priorities through the tax regime. With a stable tax revenue, governments can provide services like maintaining security, providing welfare services, and constructing social infrastructure.
Reducing tax stress
As a small business, or any business for that matter, tax can be a daunting task and many owners feel a looming sense of dread when it comes to dealing with tax. This stress can be reduced greatly for businesses that have managed to stay on top of their financial record-keeping. In all cases, financial records should present your income, expenses, assets and liabilities clearly allowing for an easier journey when submitting tax returns.
What are some of our top tax tips for small businesses?
- Prepare for tax season in advance: know when tax season begins and get a head start. Usually, tax season occurs when the bulk of the financial year is over which affords small businesses the opportunity for strategic tax planning. Small businesses should not neglect meeting with their accountants. Tax planning is an ongoing activity that needs to be adjusted over time–preferably quarterly.
- Get your taxes right: nobody wants a back-and-forth with SARS and tax time is stressful enough. Take the time to do them properly and save your future self-hassles. Better yet, ask for help.
- Make a charitable donation: small businesses can reduce their tax liability by making charitable donations. Side note, this isn’t just a way to reduce the amount of tax you pay but could also help you to gain exposure as a small business in your community garnering the potential support of your consumers and local target market. Speak to your accountant on what documentation you should be asking for before making this donation.
- Contribute to your retirement account: small business owners feel the pinch and often take responsibility for their own financial future. Not only does this give you peace of mind but it is also tax deductible. Furthermore, you could also attract quality employees if you are able to offer them retirement benefits.
- Hire someone professional: Nobody expects you to do this alone. We understand small businesses start to do something they are passionate about not to do taxes. Businesses, like us at PSTM, are highly qualified to handle your tax and make it work for you.
With all of this under control, there is more time and energy to spend on creating value in your business. With us taking care of your tax, you can focus on providing better, higher-quality products and services. You can focus on increasing customer convenience and improving customer experience to name a few.
Tax solutions
We specialise in tax solutions related to:
- Value added tax
- Corporate tax (direct and indirect)
- Employment tax
- Personal income tax
We also offer our corporate clients a range of tax solutions including:
- The implementation of effective, efficient processes for gathering and storing data for tax compliance and reporting.
- Where financial decisions are concerned, we implement tax risk management processes and controls.
- We submit corporate tax returns on your behalf and prepare tax computations.
- Preparing tax-related accounting disclosures for the annual financial statement reporting at year-end.
- Providing quality advice on tax compliance and other aspects of your business.
For all your tax solutions you can turn to us at PSTM. Call us today and get a head start!
