How to overcome the fear of the tax man?

Some small business owners live in perpetual fear of tax authorities. Their thermometer could go haywire the night before the tax audit! Some businesses even miss their accounting deadlines. The reason for this fear is mostly associated with inaccurate bookkeeping.

The ‘indifference’ factor in bookkeeping
Many small business owners are indifferent where bookkeeping is concerned. They do not attach much importance to it, given the size of their business. They either manage it themselves or transfer the responsibility to their spouse or admin. In that case they run a huge risk of their bookkeeping activities going berserk. Neither indifference nor ignorance is good for business.
The result – missed accounting deadlines.

How do you manage your bookkeeping?
Do you let your spouse or admin to take care of your accounts?

You have to understand that they cannot be expected to be well aware of legal and financial matters that surround business bookkeeping. It seems like a simple task; however, it cannot be done by just anybody. One cannot afford to make mistakes.

For instance, it is necessary to issue and file an invoice for every transaction. This may seem like an unimportant chore that untrained individuals might forget to do. Later, when tax deadlines near, you would be clueless as to how the records got messed up. Such seemingly small mistakes might take their toll on the very existence of the business. So, what is the alternative?

How to make it right?
The solution lies in getting a trained bookkeeper.

He would be better informed of the latest changes and developments in business bookkeeping. He would also be aware of legal and financial matters concerning it. He would know when accounting reports are due and tax audits are scheduled. He would ensure that the books of accounts are accurate and updated.

That settles it.

Or almost.

Better yet, outsource your bookkeeping!
There could be issues with an in-house bookkeeper as well.  He may ensure that your books are accurate and up to date but he is high maintenance!
You end up paying a rather heavy price on hiring and training, providing office space, installing software and equipments and so on. That is a lot of money. So an even better option is outsourcing.

Summary
When you outsource your requirements to companies like Integra, you get to enjoy bookkeeping services of trained professionals at surprisingly low costs. You also save space, time and money that can be invested in better things such as interacting with customers and improving core business.
The best part is you do not have to miss accounting deadlines anymore. Nor do you have to suppress the urge to break into a sprint when you see tax authorities at a distance!

Did you miss your accounting deadlines? What problems have your had to run into because of this? Post your comments below!

Aravind Kumar

Aravind co-founded Integra and manages the company’s operations from its global delivery center in Coimbatore, India. He is the brain behind the company's IT strategies and infrastructure. His knowledge and experience working with large corporations such as Yahoo India, Rediff, and Honda prove to be instrumental to the company’s progress. He would be able to help you with your business troubles too! Drop him a line or two!

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