accuprosys provides taxation services in hyderabad

1. Silly Tax Mistakes
Made by Businesses
Avoid these silly tax mistakes and face
auditors without breaking a sweat.
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2. Taxation issues are
surely very “taxing”.
O Listed here are
the most silly
tax mistakes
made by
businesses,
especially small
business and
SMEs, that they
inadvertently
fail to avoid.
The Auditing bug cannot
be avoided and
businesses might as well
be prepared for it.
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3. 1. Not maintaining financial
records
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Business heads are so
engrossed in numbers:
sales projections,
profits, revenue, et al.
But the numbers they
should be most
concerned with are the
ones on their financial
records.
Taxation services
Yet, these are the very
entities they ignore.
Businesses should
keep their records and
annual accounts
updated.

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6. What happens if you fail to
do so?
You end up paying lower taxes or higher taxes than you
should.
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7. Even if you did pay the correct
amount of tax, auditors will
still raise eyebrows (and issues
of course!) if you do not have
proper financial documents to
substantiate the taxes paid.
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8. 2. Overlooking
deductible expenses
Taxation services -
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9. Do your financial records
maintain business and
personal expenses separately?
Can you track your deductible
expenses?
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10. If not, then you are bound
to stay out of the good
books of auditors.
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11. Proper financial records are
those that ensure business
and personal expenses are
clearly distinguished.
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12. Payments made from personal
accounts for business purposes are
deductible. Anything other than that is
not deductible. Remember!
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13. 3. Not staying informed
about legal updates on
taxation
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14. One of the silliest taxation
mistakes made by businesses
is that they do not stay well-
informed about changes in tax
laws.
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15. Businesses should follow
notifications and circulars to
keep themselves abreast about
any changes in tax laws until
they release an app for that!
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16. 4. Indulging in tax frauds
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17. Some tax frauds are major
and some are not.
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18. Big or small, a tax fraud is
perhaps the biggest mistake
you could make to
jeopardize your business.
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19. Some companies pocket a
percentage of indirect taxes
levied on customers.
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20. Others find other means.
Auditors have their way of
identifying funny tactics. So
quit the bad and get
honest.
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21. 5. Not correctly
distinguishing
independent contractors
and internal employees
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22. Confusion between
independent contractors
and employees on your
payroll may land you in
some serious trouble.
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23. Tax liabilities are different
for employees and
independent contractors.
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24. Employers are required to
pay a percentage of
employment taxes for
workers employed by them.
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25. Non-payment of these taxes
attracts penalties and
interests. Stating that an
employee is an independent
contractor to avoid taxes is a
big no-no.
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26. There are a zillion legal ways to save on
taxes. Companies should seek assistance
from reputed accounting and taxation
service firms or hire corporate advisors to
help them make the right investment choices
and to save on taxes. Going the illegal-way to
avoid taxes not only attracts gruesome
penalties but also poses a risk to the
reputation of the organization.
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27. Centre for Innovation and
Entrepreneurship
C-4, IIT-H Foundation,
Gachibowli, Hyderabad
9618402751, 9000600247
Reach us at:
prabha@accuprosys.com
simplify@accuprosys.com
anuradha@accuprosys.com
For more details, please visit:
www.accuprosys.com
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