A company’s finance is a complicated thing. It comes in as revenue, goes through several processes and becomes a profit. The process in between is taxation, and it is something you should take seriously. There are no ifs and buts when it comes to your contribution to the country, and it is ideal to conform to the rules than risk facing the ire of the authorities.
With that in mind, it is important to remember that the more revenue you earn, the more tax you pay. It is the law of the land and it has been since time immemorial. It is infuriating in one part, but bear in mind that your taxes work for your benefit. If you cannot see any improvement that goes your way, you can always complain to your local council.
Nevertheless, it is necessary for you to sort your books. If you know little about taxes, as many self-employed individuals are, you must retain an accountant. Financial accounting services are not something to take for granted.
Learning from History
Not every major financial news in the past have all been about taxation, but it tells the trouble that could come when playing with financial fire. There were Walter Anderson and Al Capone, famous for not paying their taxes, apart from other things. It landed them both in jail, and never were they able to create anything significant again.
The 2008 financial crash was not anything tax-related, but now, it works as a warning for people who want to play the system. The rules are there for a reason, and to ignore them in such a scale would be inviting trouble so big that it engulfed the whole world into monetary chaos.
These are major examples compared to a local enterprise such as your business. But, if there is anything you need to pick up from these real-life scenarios is that you should abide by financial rules. There is a delicate balance about money in a certain organisation. You may think that excluding expenses here and there are small issues. When it compounds, and it will bring the authorities with them, you will rue the day.
Your accounts are important. More than actually learning how much you make and conforming to the rules, it will provide a good measure as to how much you have grown. Furthermore, it is one less thing to worry about when the books are straight and sorted.
Work with an accounting practice that specialises in helping self-employed individuals and contractors. Visit www.itp.co.nz today.