Though tax is just a three letter word, it comes as a nightmare to businessmen while the time of returning taxes approaches. Tax return is not an easy process. People unaware of this system face many problems. Especially, small business owners stay under pressure during this time. In a hurry to do all the things in time, they or the accountants make some mistakes which should be avoided. Though the things may seem fine to untrained eye, there remain a few mistakes. These faults can create problem. So, it is better to learn about these and avoid them in future.
Poor maintenance:
No doubt, you will hate to keep everything you do record at the perfect time. Though businessmen keep all the records, they are not usually properly maintained. At the time of tax returns Glen Waverley, all the records come to your mind and you hand over all of them at a time to your accountant. Though the whole process of tax filing may be bundled up in a few words, the job is really tough. The accountant will have to organize all the records, then make adjustments and file the returns. If all the records are well kept and maintained throughout the year, the process becomes a little easier.
Never ignore tax filing on time:
One of the basic mistakes of tax filing is being late. Many small business owners do not bother to file returns on time. But this does not do anything good. You are actually penalized for not filing the returns and this penalty increases with time. Every business owner gets near about one year time to organize all the things and file taxes. But not maintaining the records in the proper way is the reason of being late, or making mistakes or avoiding the returns altogether. Remember that you have to pay the tax and being late costs you more. So, maintain your tax record and file tax on time by hiring an experienced tax agent.
Carefully take personal loans:
Sometimes, shareholders or sole owners take personal loans for the company itself. But according to rule, you are not fit for taking such loans. Try to avoid or solve these issues to be marked as a good tax payer. Always consult with your accountant before taking such personal loans from the company.
Never forget to apply proper business deductions:
Every business falls under a certain category of returns. It is very normal that no business owner will want to pay more than he owes to pay. To do this, you must correctly apply the business deduction. Your business may qualify for deductions like advertising, equipment, advertising, office furniture and many more. Applying these deductions you can cut back the amount of payable tax.