Why small business should keep a check on tax compliance?

What could be better than owning a small business? You are taking own decisions, get to lead few employees with more growth opportunities for all. But you might panic when there is tax season and Government has levied heavy penalty if you fail to submit taxes on time or make it work smoothly. So owning a small business too can turn nightmare if you don’t keep a track on tax compliance.

When in charge of a small business you have to take care of everything- from sales and marketing to payroll and taxes. Some basic tax knowledge and techniques can go long way helping you to navigate this process.

For taxation knowledge, you don’t have to worry now. I have got you covered!

In this article I am listing down tax-saving tips for small business owners.

Tax- saving tips for small business owners-

1)?Hire the right person for accounting- Your accountant shouldn't just give you financial statements but can help you with tracking income throughout the year and filing taxes too. He/She should make sure that there is enough cashflow, monitor net and gross profits, maintain proper financial records too.

2)?Keep proper records- Keeping proper and accurate records throughout the year helps in filing quarterly tax return correctly. Incorrect records may sometimes even lead to FTA audit which we don’t want. I strongly recommend you to have an accounting software for your business. It doesn't have to be complex. A simple basic one which can keep a track of all business transactions. Another way to keep records is to collect receipts and invoices and compile them from time-to-time.

3)?Avoid late payments- Get your documents compiled together earlier so you can avoid last-minute tax filing and unforeseen expenses. Short-term working capital and business tax debt loans can help you cover tax payments on time and thus avoid late payment fines.

There are many doubts regarding VAT, and one such doubt is why you should register for VAT when you have just about setting up your company, and it operates on a relatively smaller scale.

Here are some reasons why you should register for VAT-

1)?Check if You Have Already Met Requirements

2)?Avoid Any Penalties

3)?Bad For Business Image

Some important facts to keep in mind about VAT are-

-Input tax should be calculated only for the purchases which are made for business purposes and for those which are related to providing your customers with taxable goods or services.

-VAT is paid by the final consumer of the goods or services, and all you would be required to pay are the compliance expenses.

-You do not need to pay VAT on your profits, and your employees do not pay VAT on their salaries.

VAT is a requirement in Dubai, and as a company, you are obligated to comply with its norms. In case you do not understand what the requirements are, an accountant in Dubai or even a?bookkeeper in Dubai?(or anywhere in the UAE) will be able to help you.

For more information or assistance, you can reach me via DM or Call.

Happy to help in your success journey!