First of all, congratulations to you for owning a business! You might be well aware now of the tax changes and challenges that you would be facing this tax season. Filing and paying taxes prior to due date is always a good practice to avoid penalties and work load later on. However, if you are new to tax planning for your company, and are worried, fret not. Here are the 5 easiest tax planning tips for new business owners.
- Avoid spending hours on manual data handling-
If you are using Excel or any other data organizing tools for all your account related duties, you may face difficulties as your business grows in future. Spend some and subscribe for an accounting platform at the ease of your desk. It will not only help you in future but also help you in quick and accurate tax filing today, without any error.
- Set checkpoints-
Small business owners usually tend to face many difficulties at the end of year for not keeping it organized. The consequences includes loss of data which later leads to bigger mistakes. While checking the fillings throughout the year can save you from unwanted surprises at the dead line. Setting checkpoints potentially at the end of every month and keep your books updated in time to avoid getting overworked in the end.
- Hire an expert-
Mostly seen in small businesses where owners tend to perform every task by themselves. Focusing on any one task may lead to higher productivity whilst performing many tasks at same time may lead to sinking yourself. An expert accountant or dedicated accounting software can help you here. Small business or startup owners with low budget can subscribe to these resources making it affordable.
- Deductions on domestic office-
Many business owners also run their office from home. If you run your businesses from your home and not yet claimed for any tax relief / deductions, do it ASAP! These deductions include insurance, mortgage, electricity bills, and many more.
- Save taxes from through social contributions-
According to latest Union Budget 2019, people who come under income bracket of 5 LPA can be exempted from paying any tax. For earning further deductions, you can contribute to charities or performing CSR activities which too may bring you deductions into taxes. Giving bonuses, holiday packages to employees also comes under deductible business expenses.
Has 31st march (due date for taxes) passed? And you owe penalties thereby? Have a look at these 4 tips on what to do next:
- Penalty for late filing and paying tax-
There are two separate penalties – Late filing and late payment. Both have separate percentage of fines.
- Loans for paying them (if needed)-
Even if the owner is not liable to pay taxes due to economic issues, they must at least file the taxes. Later taxes could be paid through loans could help you reduce stress than owing IRS.
- Payment options-
GST could be paid through Challan 280 or through http://www.tin-nsdl.com site. Various other methods could be found through online.
- Penalty may not apply for applicants-
Applicants like business owners who show a reasonable cause for not paying or late paying taxes could be saved form any form of penalties.
How can Sage 300 help you?
Filing your taxes and paying them on time without any error requires professional assistance. Software dedicated to act as accountants under little control can also save you lot of real money on tax through every possible way. Sage 300 is one such software. It is designed in such a way that it brings down all your operational costs. To know more about how Sage 300 can help you, write to us at email@example.com for a free consultation.
Sources: Tax Information Network, Times of India.