When reading and hearing about “Taxes for small business”, perhaps you who own a micro or small business can imagine that this is “the thing” of large organizations, multinationals and more robust segments. You may have the impression that your newly opened company or even that it has been in the market for some time, but it is not considered a large company, it does not need this type of “detail”. Know that this article is just to demystify this type of thinking. Small and micro businesses need tax planning as much as any multinational. In fact, large companies only reached this level because they had adequate tax planning.
Table of Contents
Your company mitigating risks
Starting tax planning, your company will be shielding itself from future risks. Planning has the power to check the most vulnerable areas within the finance and accounting department, to be able to inhibit significant losses. For example, if your company is going to have a difficult year with little income, you will be grateful to have planned an alternative to this more turbulent period.
Choose the best tax regime based on your activity
This is the biggest benefit of tax planning for small businesses. Many entrepreneurs, when opening a business, do not realize how much money they can lose if they choose an inappropriate tax regime for their activity. Only specialists in the field can indicate and guide your company to choose the ideal tax regime for your business. When this does not happen, practically all the profit is affected, paying “unnecessary” taxes because there was no adequate guidance.
Another lousy mistake of small entrepreneurs is to think that the inspection only “goes after” large companies and, therefore, there is no need to worry so much about the financial. Well, know that if there is one thing that the tax authorities do not do, it is a distinction between companies. If there is any irregularity, he will assess and apply the penalties in force in any of them, be it small, medium or large. From there, tax planning protects you from falling into the hands of the tax authorities. It consists of a preventive action to future errors that may happen.
Determines an effective tax agenda
An active and efficient tax agenda does not allow the topic of the previous topic to happen. No penalties for your company that has just taken its first steps. Since the rules, obligations and deadlines for paying taxes are many, a detailed and strictly followed tax agenda is essential. Thus, everything remains paid and organized, with the profit obtained by the company directed where the entrepreneur wishes. There are still several benefits of tax planning for small and micro businesses. However, those mentioned already demonstrate the need to start tax planning even in this fiscal year.