When Should You Hire Income Tax Services?
When running your business in Singapore (or any country for that matter) you will eventually be required to pay income tax based on your earnings. Failing to do so will result in disciplinary action including fines, court action, and even prison sentences should you continuously avoid paying tax. As a result, hiring tax filing services is a great way to ensure you stay on the right side of the law. These services will also limit any accidental financial mistakes that can occur- after all, unless you run a financial company then it’s very unlikely you’re going to be an expert. So, when exactly should you hire income tax services?
You Don’t Have The Time To Manage Your Cash Flow
More money is better right? Well yes and no. Whilst more money will allow you to expand your business and live an overall better life, more money does actually mean more problems. As you focus on managing your business, managing your finances can quickly become quite overwhelming, especially during phases of rapid expansion. When it gets to a certain point, you simply won’t have the time to manage your cash flows anymore. This is when you should look into tax filing services. Although these services can appear somewhat daunting at first, the benefits of using them far outweigh the risks. Using a tax filing service will make sure that your finances are in order so that you don’t get into any trouble when it comes to paying your taxes. After all, paying a bit in taxes now is far less stressful than having to pay thousands more as you missed a payment.
Your Income Has Increased To An Overwhelming Scale
Managing your business is an extremely fun experience. Though it can be very easy to micromanage everything when you’re first starting out. From choosing the suppliers you work with to your internal operations, you will get into the habit of managing every area of the business. This is no different when it comes to managing your finances. You will quickly get into the habit of managing your finances on a weekly basis. However, you will eventually get to the point where managing your finances becomes a little too complex. As your business grows and your turnover increases the numbers will quickly become far too complex to manage. Without the necessary accountancy qualifications, you simply won’t be able to stay on top of everything. This is where you should look into hiring a company that offers income tax services. They will not only help you to manage your income, but they will also provide you with tips as to how you can keep your tax to a minimum (something most business owners definitely aspire to achieve).
You Have No Financial Literacy
One mistake business owners commonly make is that they try to manage their finances with no financial background. For example, they may run and manage a bakery. They may be great at making bread for their customers, but this doesn’t mean they know how to manage their income. Although at first, you may believe that you’re saving yourself money, in the long term this will become extremely detrimental to your business. In fact, if you fail to pay your income tax for consecutive years, you may be hit with a fine that suits down the business altogether. Rather than taking this risk, admit that you have little financial knowledge and seek the help of a professional. Taking a small cut to your profits now will ensure you can enjoy the benefits of your income later down the line.
You Can’t Afford An Internal Tax Department
Another mistake that businesses often make is that they will try to hire internally. Whilst this may appear to be a good idea at first, hiring an accountant (or another financial expert) within the business is extremely expensive. Even the most inexperienced accountants will cost you well over $30,000 a year. In addition to this, they may not actually have enough work to do. Due to the skillset of an accountant, they will be able to manage your finances in a matter of hours every day. This means you’re paying them for the hours that they’re not working too. This is why you should seek income tax services from outside the business. This is a practice used by most companies around the world from smaller startups to multinational companies.
If you’re still unsure as to whether or not you require income tax services, then simply send a company an email. By opening communications with a professional, you can seek expert advice without having to damage your cash flow when doing so. Most companies will be happy to offer you a short consultation in which you can discuss your situation and requirements.