Small Businesses & The Many Tax Issues That They Face

There are literally thousands of new businesses opening up every day all across world and when you add those to the thousands of businesses that are currently in operation, it amounts to a considerable amount of ongoing business. Small business owners have a lot of responsibility on their shoulders because they try to undertake all of the jobs because they are trying to save themselves money along the way.

There are many other competitors out there that are offering the same products and services that they do and so this makes it even more difficult to stay ahead of your closest competitor. On top of all of this, there is a lot of tax paperwork that needs to be prepared and it’s not like the small business owners have enough to do already.

It is so important to protect yourself and your business at all times and remaining a sole trader, especially in a foreign country, is not something that you should be looking at doing long term. It is much better to register your business to reduce your liabilities and so this is why it is important that you get yourself one of those lawyers for BOI Thailand offers, if you are setting up the business in this country, to make the whole tax process a lot easier. Finding out you could be eligible for BOI or its equivalent in your chosen country could bring in lots of benefits.

There are a number of tax issues that small businesses have to face every day and the following are just some of them.

Not Paying Enough Tax

There are so many different rules that need to be followed and so, small business owners cannot be blamed for not knowing everything. One example would be that as a business, you collect the necessary sales tax from your customers, but many forget to pass that income along to the relevant government department because they forget or they don’t know how to do it. They end up not paying enough tax to the relevant government department; when this is noticed, it brings attention to the door and they may even incur a fine which could amount to a significant amount of money.

Bad Record-Keeping

As was mentioned briefly before, small business owners try to take on all of the other jobs that they really should be contracting out; they end up not doing the accounting properly and so mistakes are made. In many cases, business owners forget to even file their taxes and the relevant government department will make a tax liability estimate by themselves which may be in excess of what they really have earned.

The Wrong Classification

There are many rules to be followed when it comes to tax law and there are many different kinds of classifications as well. Many small businesses make the mistake of combining business and personal expenditures like enjoyable vacations together; this tends to get them on quite a bit of trouble. It means when you forward your tax submissions that it’s likely that they are incorrect and this will be noticed by the relevant government employee. These are just three of the tax issues that face small businesses every single tax year; there are numerous more. To make sure that you don’t fall foul of the relevant tax laws, it might be a good idea to contract out your accounting needs to someone who knows exactly what they’re doing.