Tax planning for micro and small businesses: learn what it is and how to do it.


The set of taxes, levies and contributions that a company pays can represent around 33% of the business' revenues. Therefore, if you want to stay competitive, you need to reduce a company's costs and increase profitability. The only way it is possible if you invest in proper tax planning with the help of a professional Steuerberater Wien. The goal of tax planning for micro and small companies is to reduce the tax burden and pay fewer taxes. 

What is tax planning?

Tax planning for companies is a way to verify which will be the most economical way to pay taxes. Also, tax planning for micro and small companies is to understand the best tax regime for the fiscal year that is about to start. 

You can choose the tax regime in two moments: opening the business and at every turn of the fiscal year. It is impossible to change the type of tax regime after the beginning of the fiscal year, so it is essential that tax planning for micro and small companies is done carefully. Only then you will avoid a mistake that could compromise your organization's next 365 days.

How to carry out tax planning?

All micro and small companies that are not required to adopt a specific collection system may continue tax planning and choose a more economical way to meet their tax obligations. The primary step is always to understand the tax regimes. Later, some business issues will be analyzed, such as data collected in the year being finalized, future scenarios must be considered, activities performed, products or services offered, billing volume, the number of employees, profitability, etc.

Reducing the collection amounts

When the payment of a particular tax is unavoidable, it is possible to reduce the percentage to be collected in some cases. One way to do this is to adhere to tax incentives that lower tax rates. 

Delaying payment of the obligation

It is possible to delay a tax payment without incurring fines or being forced to pay instalments in many situations. So, if, after a thorough evaluation, your Steuerberater Wien judges that it is a perfect idea, you can rely on more cash on hand. You can grow the business or invest in an item with high potential for return. No company, regardless of their sizes, can survive without a proper tax planning.

Conclusion

You must seek support from a professional. The professional will help you in how to run a small business, about tax obligations. Again, do this regardless of the size of your business and find the cheapest way to pay taxes. We hope you have understood what tax planning for micro and small businesses is and how it can be relevant to your company.

Also read - How can a tax consultancy help your company in tax reduction?

 

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