Diligence in Paying Taxes

gracer

New member
Every business owner has to always include payment schedules for taxes in his/her journal to avoid payment delays and subsequent penalties. Scheduling and paying in advance has been a regular practice in our small business. Aside from regularly checking inventories and auditing one's income, paying taxes is one responsibility that shouldn't be overlooked when running a business. What other ideas can you add when it comes to paying business taxes diligently?
 

pwarbi

New member
Re: Diligence in Paying Taxes

Paying taxes for a business is just one of those necessary evils that nobody likes doing, but we have to do it one way or another. At the moment I have a full time bookkeeper that works in-house to make sure that wages are paid monthly and the books are in order on a weekly basis and that also means that they deal with the tax returns at the end of the year to make sure everything is in order.

Even if your business is small enough to not need a permanent bookkeeper, or you simply can't afford one, I'd seriously think about hiring one at the end of the financial year to make sure that your taxes are up to date and paid on time as the government don't mess about when it comes to a business not paying the right amount or being on time, and the last thing you want is penalties imposed on you that could make a serious dent in the following years profits.
 

neural

New member
Re: Diligence in Paying Taxes

Well spent discreet Taxes are a good thing – our money keeps the country running. But paying too much taxes is not good at all. People tend to give away more money in taxe than the necessary. The government creates many legitimate opportunities for us to reduce the amount you pay in tax. However, you may not be aware of them all, or you may be unsure of how to take advantage of them. An independent financial adviser or an accountant can help you identify all your areas of tax wastage and advise you on ways to become more tax efficient, saving you a significant amount of money over the longer term. They will also be able to inform you of any changes in tax law that could affect you (either in a bad way or a good way).
 

Corzhens

Member
Re: Diligence in Paying Taxes

One of the headaches of business - taxes. And paying taxes is not easy because there is always a long line to the cashier. I wonder if they can streamline the system so the procedure of paying would be faster. Businesses here are required to report VAT payments monthly otherwise there will be a penalty. And even if there is not payment involved like when the business did not have any transaction for a particular month, reporting to the bureau of internal revenue is still required. So that is an additional person to the line in the revenue office. Another tax to submit is the income tax of employees where the withheld tax should be submitted to the revenue office as well.
 

rz3300

New member
Re: Diligence in Paying Taxes

The easiest way to make sure that this happens is really to do them early. Of course that is never what anyone wants to do, but there are just so many benefits. If you use an accountant, services are usually cheaper during the off season. You stay ahead of the game and of your budget, which was always the main advantage that I considered. Chances are that you will remember a little better too, which is always a positive and lead to more diligence. Hopefully every business has people in place to deal with these issues.
 

xTinx

New member
Re: Diligence in Paying Taxes

Some businesses don't like to go through the hassles of filing their own taxes - even the start-ups/SMEs. These business usually hire the services of a local or offshore accountant to keep everything on file for them so that when tax season comes, they'd be able to pay their taxes on time.
 

explorerx7

New member
Re: Diligence in Paying Taxes

The business should have an accountant whether internal or external to compile the necessary information to arrive at the tax liability for the financial year. It should be the job of the accountant to arrive at the tax payable figures and file the returns in due time as to not incur fines or penalties.
 

Norm

New member
Re: Diligence in Paying Taxes

It should be done with a lot of care so as you can be sure you are following the laws. The best is to just find people who are competent and can be trusted to handle it and to be on top of it in terms of reviewing it and seeing what possible mistakes are present or need correction. For the most part as long as you have trustworthy people around you then it should be fine.
 

pwarbi

New member
Re: Diligence in Paying Taxes

HMRC as it's known here in the UK, basically the ones who you pay your taxes to, are well known for not being the most forgiving people on the planet, and any mistake, doesn't matter how small is often punished quite severely. While it's true that people might not like to pay taxes, we do accept that it needs to be done. I just think that those in charge need to relax a little and not be as anal as they are at the moment.

One of the rules just for example is that if you owe the taxman money, they can chase you for up to 10 years and have the right to even make you bankrupt to make sure they get that money. If the taxman owes you money though, you only have up to 12 months to claim it back, and even then it's up to you to work out what they owe you as they won't inform you of any mistakes they have made. How can that be seen as fair?
 

gracer

New member
Re: Diligence in Paying Taxes

HMRC as it's known here in the UK, basically the ones who you pay your taxes to, are well known for not being the most forgiving people on the planet, and any mistake, doesn't matter how small is often punished quite severely. While it's true that people might not like to pay taxes, we do accept that it needs to be done. I just think that those in charge need to relax a little and not be as anal as they are at the moment.

One of the rules just for example is that if you owe the taxman money, they can chase you for up to 10 years and have the right to even make you bankrupt to make sure they get that money. If the taxman owes you money though, you only have up to 12 months to claim it back, and even then it's up to you to work out what they owe you as they won't inform you of any mistakes they have made. How can that be seen as fair?
Wow! That is just so unfair for the taxpayer. I do think that it does happen anywhere though. The internal revenue here in my country is very keen in taxing people as well especially the high profile ones. Our own president has named their agency as one of the most corrupt areas of government though. It can be really unfair for the people who are honestly and diligently paying their taxes.
 

pwarbi

New member
Re: Diligence in Paying Taxes

Wow! That is just so unfair for the taxpayer. I do think that it does happen anywhere though. The internal revenue here in my country is very keen in taxing people as well especially the high profile ones. Our own president has named their agency as one of the most corrupt areas of government though. It can be really unfair for the people who are honestly and diligently paying their taxes.
Well that's another issue here in the UK, and it seems that those people that are making millions, the big businesses are given the most amount of leeway when it comes to paying taxes also, and it's the smaller businesses that are targeted more. You often find that the CEO of a major company will also be paying into a political party coffers so they get away with things that a smaller business owner who isn't wouldn't.

The taxman will clampdown on John Jones who owns his own car parts business for example, but if Lord Gatesby who owns Shell or some other major corporation commits the same offence they are highly unlikely to be punished in the same way or even at all. Lord Gatesby is best friends with the prime minister or the head of HMRC so won't be treated as harshly of course.
 

cluckeyo

New member
Re: Diligence in Paying Taxes

Recently I let my quarterly taxes slip by and I was a few days late reporting. That caused me to incur a nasty little fee, so I am pretty diligent about being on time. I just bought Quicken Deluxe. It works for me at this stage and allows me to combine everything, as now I am still a sole proprietor. I like Quicken so far, but I have a lot of setting up to do still. It should make things lots easier all around.
 

gracer

New member
Re: Diligence in Paying Taxes

The government allows you to in America give away up to 50% of your revenue for tax write off's, and those things that you could write off are limited, but the institutions, and other places that you can give money to is so vast that you'll never have to worry about paying too much taxes ever.

All you have to do is give the money that you don't want to pay in taxes to a school, by that I mean donate it. Do the job that your taxes would have done and they'll give you the money back. It's how big businesses pay such low tax rates. If you own a business, it's highly unlikely that you are taking home 50% of profits on your investment. Whatever you are taking home as profits could go to whatever is on the list that the IRS allows.

For me it's educational places, super easy way to avoid taxes which is legal. Do their jobs for them and they'll give you the money back.
This is nice! :) I think this is a good way for people or businesses to see where their money goes. We don't have this kind of policy in our country but it's a good policy to adopt since there are just too many corrupt government officials here who just put people's taxes in their pockets rather than do their work in a clean and honest manner. Having the option to directly put the money intended for tax in your chosen field is a good thing for me.
 

PurpleBee

New member
Re: Diligence in Paying Taxes

Another thing to make sure and be diligent about with taxes is keeping a good, detailed record of expenses. It's your loss if you don't take advantage of the expenses lowering your final tax bill, and no one is going to care if you think of it after you have already filed. Every penny counts!
 

martyJo

New member
Re: Diligence in Paying Taxes

Having been a consumer for years, I know what I'm about to say is not going to be popular. I hate having to pay more taxes--and doesn't it seem like they keep going up every year?

Nevertheless, the only way for a business owner to keep the doors open year after year, is to make a profit. And to make a profit AND pay taxes is really stretching it sometimes. As business owners, we want the lowest prices for our customers, to keep them returning, but we also know that there has to be enough margin to take care of the overhead, whether it be utilities and rent, feeding our own families, paying employees or Uncle Sam.

I've heard of a few ways to manage taxes, but no one ever gets out of paying them completely. A business owner should list all of the categories of taxes owed, city, state, federal. Then stagger the payments. It's so easy to put them off, then they all come due at the same time, and it's just overwhelming. (Maybe right from the beginning, have an interest-bearing account that is just for paying staggered taxes.)

Besides that, keep up with changes in the tax law/code and always get all the deductions you are eligible for. One business my aunt cleaned for years ago, only hired her for the last 6 months out of the year, so they could claim the service as a deduction. I assume they were staying on top of changing tax laws.

Until taxes go away, this will always be a concern of every business trying to keep its head above water (financially speaking).
 

gracer

New member
Re: Diligence in Paying Taxes

Nevertheless, the only way for a business owner to keep the doors open year after year, is to make a profit. And to make a profit AND pay taxes is really stretching it sometimes. As business owners, we want the lowest prices for our customers, to keep them returning, but we also know that there has to be enough margin to take care of the overhead, whether it be utilities and rent, feeding our own families, paying employees or Uncle Sam.
I can truly relate to this. It is indeed our aim as business owners to offer the lowest prices we can give to our customers in order for us to keep them from coming back and gain their loyalty. It's the taxes (which do come in varieties) that make it impossible for us to give what our customers want. Our small food business has one of the lowest prices in our area but the tax we pay is sometimes very disheartening. The only consolation we get is the patriotism of our customers to our business.
 

pwarbi

New member
Re: Diligence in Paying Taxes

Business owners and consumers I think both want the same things. The consumer ants the price to stay low or even drop further, and business owners want to make money and if that means keeping their prices low to allow for that then that's fine by us. Where we differ is that we have to also try and make a profit like you say, and in this day and age that's already hard enough without taxes rising as well. While it's understandable, I think consumers need to try and look at things from a business owners point of view and instead of pushing for price drops then be willing to pay a fair price instead, at least that way the business that's supplying the goods in the first place will have some sort of chance of staying in business.
 

gracer

New member
Re: Diligence in Paying Taxes

I totally agree with you @pwarbi. Most business owners do try to lower their prices as much as possible to retain their customers and survive competition from other similar businesses. Consumers do need to understand though that businesses also have to make a profit for them to be able to continue serving their customers. It's one thing that most customers don't understand that can also sometimes contribute to the downfall of a business.
 

ad.mike2016

New member
Re: Diligence in Paying Taxes

Hiring a CPA who specializes in your type of business would be wise. Taxes are written in such a way that many people can not even begin to understand what is required and what needs to be paid when. Hiring a professional who will be able to tell you exactly what to do and even offer legal advice that my lower your tax burden is a cost saving measure. This will also provide protection in the chance that you get audited. Just make sure that they guarantee their work and will stand by you in the case of an audit. Lastly for a small business I would suggest paying your taxes quarterly as this lessens the burden at the end of the fiscal year. Yea it is the same amount of money but paying it out in smaller payments is by far less painful and if your margins are small this can help to lessen the shock of a large tax bill due all at once.
 

Jazmine

New member
Re: Diligence in Paying Taxes

Every business owner has to always include payment schedules for taxes in his/her journal to avoid payment delays and subsequent penalties. Scheduling and paying in advance has been a regular practice in our small business. Aside from regularly checking inventories and auditing one's income, paying taxes is one responsibility that shouldn't be overlooked when running a business. What other ideas can you add when it comes to paying business taxes diligently?

It's important to keep a record of all business transactions to make sure that you don't miss out on reporting income and expenditures. If you're a small business owner, it might not be cost-effective to hire a regular accountant. I would recommend that business owners learn the basics of tax compliance by enrolling in a seminars like Accounting for Non-Accountants. Ultimately, they are the ones responsible for the business taxes. The business owner or a staff can do the daily bookkeeping which is actually a simple task or recording repetitive transactions. The monthly tax reports aren't really complicated but if you don't feel confident about doing it yourself, better hire an accountant than commit costly blunders. A qualified and well-experienced accountant can give you advice on how to maximize the benefits of taxation laws and minimize your taxes as well.

Nowadays, you don't have to line up the bank to pay your taxes. You can take advantage of online banking facilities to file and pay your taxes. It's also more convenient and practical to use the electronic filing and payment system.
 
Top