When you decide to outsource bookkeeping, ensure that payroll is on top of your list. This is because it not only directly impacts your employees; it also affects your business taxes.
When done right, payroll can do wonders. It can drive productivity and achieve the results that you want. It can keep employees motivated and dedicated. It encourages loyalty and strengthens trust. After all, payroll is your way of giving back to your people’s hard works.
How Business Taxes Work
If individuals pay for their income taxes, so do businesses. Corporate taxes are involuntary contributions as well. These are mandated and collected by the government as a source of public funds. The money is then used on creating projects and building facilities that aim to aid the general public.
Various rules and laws are regulating corporate taxes, and some even vary per state. In general, a company’s tax liabilities are calculated by considering the firm’s operating earnings and revenues. All legal deductions such as cost of goods sold (COGS), depreciation of assets, and all other manufacturing or delivery expenses are then incorporated. Applicable tax rates will then be applied to whatever the calculated net amount is.
Aside from the company’s taxes, it’s the business owner’s responsibility to file taxes on their employees’ behalf. This is where the importance of reliable payroll management comes in.
Virtual Accounting Services: Ensuring Accuracy of Business Taxes
Like Indio Bookkeeping and Accounting, virtual accounting firms can offer you a streamlined and automated payroll system, an organized document filing, timely financial reports preparation, and accurate tax settlement.
When it comes to managing your taxes, we ensure to cover four essential points.
Forms and Information
One of the reasons why tax preparation is dreaded by many is the tons of forms that need to be filled out. It is a lot easier now because of the implementation of electronic filing. Nevertheless, all details must be lodged accordingly – from the company name to the Employer Identification Number (EIN).
Inclusion of Relevant Transactions
The amounts to be declared are as crucial as the company details. Inaccuracy could lead to penalties or even imprisonment. Our accounting experts see to it that all applicable transactions within the fiscal year are taken into consideration and adequately incorporated into the tax reports.
Completeness of Data
Again, any form of inaccuracy could violate specific federal and state laws. All data that could impact the results must be taken into consideration. Our virtual accountants thoroughly check every record and every report to ensure that nothing is missed out. They also put multiple levels of proofreading and checking processes to guarantee the completeness of all filed forms.
Though not directly impacts your business taxes, ensuring the same accuracy in filing your employees’ income taxes is as important. After all, by adequately running your payroll, you will have a more accurate calculation of your actual earnings.
Bookkeeping and accounting are composed of a series of interrelated tasks. Achieving the desired outputs would need consistent efforts on all other processes, regardless of how little or irrelevant some may seem. Preparing taxes, for instance, would need accurate raw data to produce accurate reports.