February 10, 2014

Why do you need a Chartered Accountant for Strategic Tax Planning?

Tax management is one of the most complex undertakings of an organisation. Currently, businesses have to compete with the economic uncertainty and the growing regulatory oversight. To effectively manage the corporate tax obligations you have to ensure that you have the right set of people in place and are employing the updated technologies to efficiently run the process. With the increasing complexity of tax legislation it is essential to put your tax planning in safe hands.
Here lies the importance of chartered accountants (CA) who have extensive knowledge and expertise to help you in your corporate tax planning. They plan the right strategy to reduce your tax liabilities and deliver cost-efficient and creative solution for the clients.

Why tax planning is necessary?

· Tax planning is a legitimate way to protect and improves business assests.
· It efficiently identify tax planning opportunities
· An effective tax planning help business minimise their tax liabilities
· With a strategic tax plan, a company can take optimum advantage of low corporate tax rate
· With proper tax strategies, capital gain derived from the sale of the business related shares are exempt from tax. This is turn creates flexibility for internal restructuring of businesses
· It ensure compliance with all relevant tax legislation
· Assist you to buy or sell a business that can avoid unnecessary tax bills
· Tactical tax planning can help you to decide how to reward your employees
· It also help to manage and control compliance issues to keep penalties at a minimum
· You can manage your cash flow effectively through a good tax planning

The biggest mistake that people make is to wait till the end of their financial year with their taxes. There are several important financial decisions that can be made and that significantly impact the amount of taxes owned. Often key tax credits, investment rules, retirement plan option, income exclusion rules are some of the things that are easily miscalculated without the foresight that tax planning can provide.

Tax planning is the process of organising finances in such a manner that allow you to maximise the amount of income you keep each year or defer into the future.

Working with chartered accountants when it comes to your financial matter eases out your worries. They help you to figure out how to proceed. Their primary job role is to reduce the amount of tax you pay each year with accurate tax planning. They utilise the facts at their fingertips to plan as how to save money in the long-term.

Following are some of their area of work to assist you legally in tax payment:

· Purchase and sale of business
· Business acquisition or disposal
· Business planning and financial projection
· Start-up counselling
· Payroll services
· Accounting services
· Business valuation
· Computer accounting software
· Salary packaging
· Audits and review
· Preparation and analysis of financial information
· Insolvency or bankruptcy
· Developing management controls
· Developing strategies for securing finance
· Forensic accounting and litigation support

A good financial planning is important to secure the future, unplanned or unforeseen events. The CA will look at your finances and outgoings and accordingly make a plane that suits your business. Ideally, a financial planning service involves retirement benefits, managed funds, public provident funds, shares, fixed interests, government bonds or investment for building wealth.

If your company is in midst of tax problems you can check with Wisteria chartered accountants in London. Wisteria’s CA can offer you advice on enhancing your business profits by the application of appropriate financial plans and system. Investing after a qualified tax accountant or financial advisor is worth the money spent especially for those who run their own business or have substantial investments.

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