What's your New Year’s tax resolution?
- More and more businesses are adapting to digital tax compliance processes.
- The new year seems to bring in some new tax issues.
- Getting your business ready for those should be on every Indian Business's tax resolution for the new year.
- This blog has some tips for writing your new year tax resolution.
That end-of-year rush will bring the world of retail a big deal of business. But is your business ready for the new year?
The end of the year is an excellent time to contemplate, evaluate, rethink your business effort and strategize for the next leap. Small measurable steps will take you there, and your business will be able to come out with significant numbers. But could your business be completely missing out on strategizing for the most tedious, tiring and unavoidable work duties of taxation?
It will be hard for you to believe how many businesses take up whatever opportunities that come their way to reach the global markets without being aware of the taxes and regulations. These regulations then come to them as a surprise, and the businesses then have to pay more to resolve the issues. They also end up disappointing customers due to delays in delivery, hidden costs and goods held by customs authorities.
It doesn't have to be that way.
Dealing with taxes comes as part and parcel of any business. Although sellers try to take care of it along with the rest of the work, it is a full-time task and requires the sellers to wear the hats of an expert. Unfortunately, it doesn't work out all the time, and then sellers either miss out on tax deadlines or lose out on some work. Your business can land in tax trouble. Here are a few things you need to note to prepare a terrific tax strategy-
1. Know if you need to register for VAT or Sales tax and whether your business has triggered nexus.
Tax laws are complex and keep changing from time to time. Businesses should take extra care. In the case of Sales tax, the rules are different for every state. Being aware of what rules and regulations will affect your business helps prepare you for the taxes.
2. Mark your deadlines for remittance, reporting and returns.
All the Rs are important for you. Marking your calendars and dedicating your time to them helps you plan and prepare for the rush hours.
3. Look for reliable sources of up-to-date tax content relevant to your business and keep a constant check to keep your tax strategy up to date.
4. Consult tax experts wherever required.
5. Having a tax expert on your speed dial will take you a long way. Especially in the case of global e-commerce, a tax expert will help you avoid common pitfalls. However, the tricky part here is that hiring skills for small businesses is an expensive affair. If you run a small business, you could go for a software solution.
6. Look for software that can help you take care of compliance faster, accurate and cheaper. Irrespective of the size and scale of your organization, adapting digital transformation in your tax process will help you make complex compliance easily. You will be able to process enormous volumes of transactions within no time and pay taxes timely and accurately. Good software solutions like AvaTax quickly fit into your existing systems and make the whole transition seamless for you.
7. Be audit-ready.
This is the mantra to use for all kinds of taxes. No matter how clear your dues are and how timely your return process has been, it is just as essential to document everything and be prepared for an audit at all times.
Avalara builds software solutions to automate tax processes and help you in digital transformation. With a large number of signed integrations, we take pride in helping out a large number of clients from all around the world. Visit our website to get in touch with us and know more about how our software could help you.
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