Tax filing and other tax-related tasks are often looked at as a DIY by many companies. Moreover, the reason is that in the starting years of a company, the earning sources and spending are very similar. Thus, the tax filing is also simple. But as the company grows, the complexity of the flow of money in and out of the company also increases.
In such a case, handling can lead to losses or compliance issues, which can further become unbearable for the company. That's why it is essential to hire accounting and tax consultants in India. So, let's understand the complications of not engaging with an accounting and tax consultant firm in detail.
Tax Filing Issues
The foremost reason why hiring an accounting and tax consultant in india is important is for tax filing. Even when you have a straightforward operation and a straightforward input and output of capital, you can make minor mistakes that may become problematic. Moreover, if you have a complex flow of money, then it becomes crucial to have support from an accounting and tax consultant in india.
Missed Tax Deductions and Credits
It is a common pitfall of not engaging with an accounting and tax consultant in India. There are various sections under which a business can get tax deductions. Moreover, the tax credits are also there apart from the dedications. Moreover, when it comes to a business, these deductions and credits toll a considerable amount. So, if you miss these deductions and credits, then it is kind of a loss to your company. It mostly happens when you avoid onboarding the expertise of a tax consultant.
Legal Compliance Issues
In India, there are many laws that a business should abide by. Now, no one wants to go against the law whether it's a common person or a business. But it can be challenging to comply with the law for a business, and a mistake can happen unknowingly. However, you can avoid such mistakes by engaging with an accounting and tax consultant in India. But how? Since, the majority of laws and regulations around businesses deal with tax compliance, an Accounting & Tax Consultant In India can help you to make sure that you comply with all the laws.
Tax Due Diligence
Let's say you have partnered with an accounting firm but looking at your past is as important as your future. So, you should be aware of what you have done in the past. Here, you better tie up with a financial due diligence company in India. A financial due diligence company in India will evaluate your company's past specifically for tax compliance and make your accounting consultant aware of it.
Asset and liability Miscalculation
Assets and liabilities are something that should be tracked throughout a financial year. The reason is that assets and liabilities are important to consider when filing taxes. These two things make a lot of difference in tax deductions and credits as well.
Simply put, you may get into a loss if you don't track your assets and liabilities. Moreover, you can also get into trouble due to wrong tax filing if you do not consider your assets and liabilities correctly.
Final Words
These are some of the pitfalls of not hiring accounting consultants. You should make sure that none of these happen to you. You can simply avoid all these by tying up with a tax consultant. Moreover, there are many other important consultancy services that a business must consider to ensure smooth business operations. One such service can be procurement consultancy, which you can get from procurement consulting companies in India.
GK Kedia tax consultants can help you minimize your tax liability, capitalize on tax deductions and manage your tax situation in India.
They are capable and expertise in tax law, tax planning, and tax compliance.
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