Currently, optimizing tax costs for businesses is considered an absolute necessity and needed to be implement as soon as possible. This will benefit businesses greatly, but Tax is an important yet difficult task for your company’s regular employees to carry out efficiently. Which is exactly why finding proper tax planning services is considered a vital for success. Ready right away! Let’s find the right services that brings high efficiency and optimize businesses expense today!
1. Misunderstandings of Tax Accountants and Tax Planning
Tax planning is the confirmation of deadlines for filing declarations so as not to incur late payment penalties or to properly prepare financial resources to pay taxes to avoid late penalties. At the end of each month, it is necessary to balance revenue and expenses in order to minimize the amount of tax payable in that month most effectively. Tax planning require accountants to utilize as much tax tricks as possible.
2. Distinguishing the concept of tax from an accounting perspective
2.1. Tax Evasion
Tax evasion is an illegal way to minimize the amount of tax payable. Some of the actions taken are as follows:
– Hiding information that should have been submitted to government agencies.
– Generating bogus/inaccurate information. And of course, tax evasion is illegal and can be convicted depending on the case.
2.2. Tax avoidance
When following methods within the framework of the law for tax avoidance, it is not advisable because one misstep can go from legal tax avoidance to illegal tax evasion.
2.3. Tax planning
Tax planning is strategic, that is, optimizing the amount of tax payable within the framework of the law. Optimization is very different from tax reduction, this is what many businesses always want to plan in the most appropriate way to get the best results, to minimizing the maximum payment of fees to optimize sales.
2.4. Tax optimization
Tax optimization requires tax planners to have a vision, an overall picture of all the interactions between business and all kind of taxes and how they can impact our wallets.
3. The most complete tax planning process
Step 1: Conduct research on business information to get the most accurate and effective assessment. It is necessary to collect the most detailed information to get the most appropriate results and the most satisfactory planning.
Some of the information that needs to be collected is as follows:
– Type of business: Is a joint stock company, limited company or private enterprise;
– Form of business: Production, trade in services;
– Scope of business: Domestic, foreign or both;
– Goods produced and traded;
– Operational process: This is the core of every business, to understand this process the planner needs to absolutely plan out everything concretely and as detailed as possible. The articulation of plans can connect processes together into a consistent system, bringing efficiency to users.
– Financial resources: You need to find out discern whether or not the financial resources of the business are strong or weak, as well as the current financial situations in the business stages, from these we will choose the most appropriate tax plan.
Step 2: Develop tax plan overview options
After researching the information of the business, the next step you need to proceed to create an overview of the tax plan. At this step you should note some of the following issues:
– All construction plans must stick to the goals determined from the beginning;
– Options must be properly quantified with numbers.
– The method applied in tax plans must be highly predictive.
– The plans must be highly feasible.
– The steps in the overall tax plan must not violate the law.
Step 3: Develop details of each option
After the overview planning step, you will base on the feasibility and advantages of the option to choose the appropriate options. This is considered the most important step in determining the effectiveness of tax planning or not.
The tax planner at this stage will detail out the plan selected. What are the options, the value brought in each period of time when implementing the plan?
A very important factor when making a detailed plan is the predicted factors of future business activities effect on the amount of tax payable. And need to adjust to get the appropriate fee at this stage.
Step 4: Evaluate the effectiveness of the plan
After the detailed plans are developed, they will be submitted to the relevant departments. The departments will form a meeting to jointly evaluate the effectiveness of the implementation of the plan.
Step 5: Adjust the plan accordingly
In the process of running the company, there will certainly be steps to change. Accompanying that are unforeseen changes in tax policy.
At that time, the tax planner must promptly adjust the plan accordingly. This adjustment will continuously take place during the implementation of the plan.
There are years when tax policy changes unpredictably that even the professionals were caught off-guard. It is inevitable to have to change and adjust the tax plan to match the new tax policy.
4. Why should you hire a tax planning and optimization service for your business?
We understand the concerns of businesses every time they have to pay taxes to the government. Which is why our service was born to help businesses clearly review all books and documents in the year, and at the same time, balance revenue and deductible expenses to optimize corporate income tax payable as well as other kinds of tax. At the same time, accurately and validly identify accounting expenses and tax expenses to avoid the risks of paying fines.
We have a team of professionals with many years of experience in the field, plus experience in consulting for thousands of businesses, as well as experience working directly with tax authorities. Assuredly, we will help you solve your problems, completely. Committed to working quickly and efficiently, without incurring costs, and especially we will take all responsibilities from government agencies.
With tax planning and optimization services for businesses deployed over the years, accompanied by many domestic and foreign businesses, we have helped business owners save from a few tens of millions to a few billion through TAX OPTIMIZATION and avoiding legal errors.
We own a comprehensive Accounting network, including: Accounting – Tax Consulting, Business establishment consulting, Accounting software, Accounting training, which will be a solid bulwark for your businesses Accounting and Legal concerns.
If you have any questions, feel free to contact us as soon as you could for assistance in solving your tax planning problems as efficiently as possible.