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Monday 23 November 2020
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How can accounting help with tax management?

We live in an unstable period due to the pandemic caused by Covid-19. Many municipalities have decreed the closure of companies and the restriction on the circulation of people. These are necessary measures, but we cannot deny the fact that they can bring an economic recession to the country. In this sense, the Micro and Small Businesses suffer the most, considering that usually fail to create a reservation needed to go through times like this. Now more than ever you need quick answers, a closer and more robust service that can deliver you more than issuing a guide, notes and other things that online accounting cannot do.

An accountant is your ally

It is very important to understand the role of the accountant in your company’s tax management, ensuring that each agent is fulfilling their role in this task. The accountant is the professional who has technical knowledge to guide you in the tax management of your company.  It is worth mentioning that accounting does not have the responsibility to carry out the financial and tax management routines of your company, leaving this task to the business administrator.

However, it is the role of the auxiliary accountant, to pass the correct guidelines, to participate in the process when requested, to ensure that the calculation of taxes is being done correctly, to present all the options of available tax regimes, in addition to the various other recurring activities that this professional must comply with in order to keep your company regular with regulatory agencies. Accounting also plays a fundamental role in providing reports so that the entrepreneur can analyze his company. Through the Balance Sheet, Income Statement and other books it is possible to perform a series of indicator calculations that will help you to ensure the financial health of your company.

Avoid unnecessary fines

The accountant uses the Income tax calculator to avoid any unnecessary payments. The accessory obligations and taxes have a certain date to be delivered and paid. In this sense, your accountant is a fundamental part to keep everything up to date and ensure that the information is all correct.

The tax burden is excessively high. Therefore, paying fewer taxes is a question of survival, especially for Micro and Small Enterprises. So your accountant can help you plan better and reduce the amount of taxes to be paid.  How is this possible? Without a doubt, it is with efficient tax management. Of course, to do so, choosing the right tax regime is essential.

Suggest the best tax regime

This is perhaps the main benefit that your accountant can offer you. This is because it is common for the entrepreneur to think that a simpler system is the best. However, it happens that these regimes do not have a series of tax compensations, which ends up having a greater impact on the taxes paid by the company.




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