When an entrepreneur decides to start a business, he or she must first think of administrative factors—fundraising, administration and taxation to ensure that the business will eventually reach the intended target. The important thing that entrepreneurs should focus is a business model selection and a tax plan for the greatest business profit.
Generally, there are two models of business which are ordinary person and juristic person. The most popular and commonly known for the latter is founding a company or Juristic Partnership which is considered to be more flexible than other types of business. Tax planning is very important that entrepreneurs should pay attention and learn because the profitability of your business is a measure of how successful your business is.
Tax planning is a preparation for an action both short and long term regarding tax. The purpose is to ensure that tax payment and any action regarding tax of an organization follow rules, process and conditions of Tax law. This is a way to efficiently reduce taxes and prevent any penalties or undesirable consequences from an incorrect tax payment.
Consequently, tax planning shows a way to maximize tax savings, reduce cost and maintain a balance of entrepreneurs’ financial status. Since most entrepreneurs do not pay a lot of their attentions to tax planning and an accounting system to ensure a consistency between accounting and tax, the most important thing for an effective tax planning is a business data collection for a need analysis which will be useful for further reference.
Some entrepreneurs may be worried and confused about their tax planning and presenting their taxes to the Revenue department. As a result, feel free to let us become part of your tax planning so that you will run your business correctly and it will grow steadily according to plan.