Prepare for Your Company Tax Returns in Advance

Posted by Aaeesha on July 8th, 2015

Congratulations on setting up a small business! Any entrepreneur understands the amount of hard work, dedication and effort that goes into starting a new venture. Most often, many budding businessmen concentrate on starting the company and all the details that go into establishing it in the market. As the company continues to grow, they should also divert their time and effort in ensuring the entire business is run according to governmental laws. While working in a company, the organisation tends to deduct the taxes from the salary, or sometimes there will be an internal auditor who will help you with your tax returns filing.

When you are working on your own business, you will be spending more time on the operations and management, and less time on the financial aspect of the company. If you don’t have the funds to appoint an auditor, then you should make time to plan for the financial audits and keep all your financial papers in order. Do you know that you have to file the company tax returns to the government? This tax is levied on the capital you invest in your company or the profit you make from your business.

It is vital that you pay your taxes and file the tax returns on time to ensure financial freedom for your growing business. First you should get a good understanding of the different taxes levied on the company and their various details. It is a good idea to maintain a neat log of the income and expenditure. As a start-up you will have limited number of entries, which will be easy to update at regular intervals. Make sure that your bookkeeping is clear and easy to understand by anyone. File all the receipts as and when possible. The most difficult part of book keeping is searching for all those little bills and invoices. Arrange all the receipts in order and put them in a file, so you can easily access all the details when required.

If you are receiving bank transfers or cheques for all your payments, then keep the latest bank account statement handy.

Mark the last date for submission of company tax returns and plan your work accordingly, so you don’t have to rush at the last minute. Planning is the key to any successful venture. So, prepare your tax returns in advance and concentrate on your core business without having to worry about last minute book keeping and accounting problems.