Things Business Owners Should Keep in Mind During Tax Season

Corporate Secretary Service Indonesia – Tax season is one of the most stressful times a business owner has to deal with, and business owners rarely relish preparing their tax returns. Still, it’s a chore that can’t be avoided. So, doing everything possible to streamline the process is essential.

Keeping your financial records and reports updated and organized throughout the year is an obvious first step to ensuring a smooth tax season. So, it’s essential to know precisely what information you need to have at your fingertips. Plus, businesses can use other innovative strategies to minimize red tape and delays.

To ensure tax preparation and filing don’t become a significant time suck and drain on your business’s bottom line, you should start preparing with Tax Consulting & Reporting well in advance of the tax season deadline. Below, we’ve shared tips for getting through tax season.

Tax Season Tips

1. Be Prepared

The number one tip for preparing for tax season is to be ready because this year also means preparing for next year. Make tax planning an ongoing priority for your business, with quarterly or, ideally, monthly check-ups. You can’t allocate capital expenditures, employee benefits, and significant investments to tax season. By then, it’s too late! So start preparing for your taxes now!

2. Review Your Accountant’s Comments on Previous Financials

Take the time to review your business’s financials from year to year for consistency and completeness. Review your accountant’s comments on last year’s financials for best practices and improve your financials as recommended. If no comments or suggestions are provided, contact them for any thoughts or tips that may be helpful to your business.

3. Prepare Your Files Early

Prepare your files early if you can. Rushing to gather relevant data for filing taxes often leads to errors and inaccurate reporting. This increases your chances of being audited by the tax office and can result in penalties that cost you more money. Perform a fiscal reconciliation to reconcile your tax calculations. Are there any increases or decreases in tax amounts? Preparing your tax files early can save you money on accounting fees with Tax Consulting & Reporting.

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Because the more complicated your tax return is, the more likely an accountant will charge you due to the increased demand for their services. So, prepare your files early and save yourself the hassle in the future!

4. Learn About New Tax Credit Rules

With the COVID-19 pandemic still affecting businesses today, meeting with your tax advisor to discuss what new tax credits or loans are available to you and/or how payments you took last year from specific relief packages will affect your tax deductions is essential. This is especially important when preparing for tax season to ensure you take advantage of any available financial assistance.

5. Plan to Avoid Penalties or Overpayments

What’s worse than paying taxes? Paying interest and penalties on top of your taxes. This situation can be avoided with planning. An organization’s accounting records can reduce tax liability if owners use proactive strategies. An organization with multiple entities needs to consider its corporate structure to ensure it’s taking advantage of all the tax strategies it can.

6. Bring in the Expert Help You Need

Maintaining accurate and well-maintained records is essential, especially for small businesses. These records should include quarterly (and perhaps monthly) profit and loss statements to make year-end planning much smoother and less stressful. If bookkeeping is overwhelming but you can’t afford a full-time employee, hire an outside service like PortCorp, which can handle your finances inexpensively.

Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need with Tax Consulting & Reporting services. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!