Useful tips for Small Business
Importance of Tax planning
Importance of Tax Planning
Often, most businesses focus so much on growth in revenue and minimization of costs that taxation becomes a secondary priority. However this is where many businesses stumble because if not administered carefully, tax debt can be a death knell for the business. Tax is critical in terms of cash flow planning, optimising costs, identifying product portfolios as well as to meet the social commitments of the business. Advantages of tax planning includes –
- Cash flow -
Tax liability arises at various times of the year depending on the nature of the business. Cash has to be set apart to make payments for GST, provisional tax etc at these times, and falling short can lead to penalties and interests.
- Product portfolios
Understanding the application of GST will sometime help you develop a good product mix of certain services or goods that may be zero rated on sale, thus making you eligible for GST refund on the expenses.
- Improve operational efficiency
Having a solid tax plan helps you avoid last minute complexities and having the schedule in place means more time to focus on your core activities.
- Long term savings
Good tax structure helps to improve the long term positioning of your business and assets and leads to improved wealth structure.
A good tax planning advisor will be able to help you understand your business and operations gambit thus minimizing the need to have to go through a cumbersome tax debt process in the future. In our line of business, we have been able to help many organizations understand the gaps and help them put in place a structure that seamlessly takes care of their tax responsibilities.
Get in touch with us to know how we can help you in your tax planning journey.
