Need some help wrapping your brain around the tax debt issue?
While every time of year is stressful in its own way when you're managing a business, perhaps the most difficult times are the spring months when tax season heats up and it's time to go through your finances and start filing. Even for the most financially savvy business leaders, it's often difficult to go through the logistical process of sifting through everything and filing an accurate return. Then, on top of that, there's the added concern – what if your business can't afford to pay what it owes?
Tax debt is a very real problem that affects countless businesses, across Australia and worldwide. Sometimes, it comes up because a company has been fiscally irresponsible and spent money it doesn't have. In other situations, though, it's merely a situation that can be overcome with a little financial knowledge and some guidance from the professionals.
Understanding the vast tax landscape
Small businesses run into occasional money problems for a wide range of reasons, but perhaps the most common is they lack a comprehensive understanding of how the tax landscape works. Under the massive umbrella of "business taxes," there are a lot of different categories to master, and struggling with just one of them can lead to financial worries.
- Income taxes – When your company makes a profit, that extra income is taxed. Are you taking this amount into account?
- Employment taxes – There are tax provisions associated with every employee under your roof. You've got to make sure none of these are left out.
- Sales taxes – If your company generates revenue by selling goods, remember that each sale is taxed. Failure to report or fully pay these taxes can result in disciplinary action.
These are just the broad strokes, and there are many other more specific details to keep in mind. The fact remains, though – turning a blind eye to any major category of business taxation is asking for trouble.
Tapping into technology can help
While the tax landscape can be confusing even for financially savvy business leaders, there are definitely ways to improve one's standing and get tax debt help with relatively little trouble.
For example, nowadays there is technology out there for helping companies and their employees keep track of important financial data. There are mobile apps for tracking sales and making sure all related income is recorded. There are cloud-based tools for managing human resources, which makes it easy to stay on top of employment taxes. Using accounting software is now an accepted mainstream process, and this too helps companies stay out of trouble.
Of course, even when you purchase all the high-tech tools, there are still no guarantees that your company will thrive financially. It's wise to reach out for some assistance in situations where you remain unsure about your company's financial future.
Does your business need some real assistance?
If you've examined every aspect of your company's tax return and you're still uncertain about the financial health of the business, it may be time to talk to the professionals about your situation. Fortunately, Corporate Lifeline offers business performance improvement services, meaning we can look at your current financial practices and advise you on any changes that need to be made.
It's possible that you're in need of a major shakeup like a company restructure – if that's the case, we can walk you through the process. But even if not, it's helpful to speak with our consultants about the performance of your business and the way it's positioned. Whatever money matters you're dealing with today, we can help.