Sunday, September 24, 2023

Take care of your business and avoid tax problems

Many entrepreneurs spend their first years in the informal sector, either due to a lack of knowledge on the subject, because they don’t want to bear the associated costs, or because the set of procedures and processes of the financial and tax systems are usually lengthy and tedious. However, this can cause different problems as you grow or look to expand.

An expert spoke about the difficulties and consequences that micro, small, and medium-sized enterprises (MSMEs) can have in tax matters.

“We, who focus on early-stage companies, know that the vast majority have problems when it comes to formalities, and when they want to register, they notice that their financial planning did not take taxes into account, which they had to pay, and they start to feel that their profit margin is affected, and as a result, they may end up incurring losses when they take on the tax burden.”

Ideally, an entrepreneur Try to be formal from day one and prepare a financial plan that includes the taxes to be covered and takes into account the sales that must be generated for the company to be profitable while generating what is necessary to cover the tax burden.

The tax system

One of the most complicated things an entrepreneur goes through when becoming an official is deciding which tax regime your project will operate under, as this will determine what you can deduct and how much you will pay to the project’s Tax Administration Service (SAT)It is ideal to seek advice from an accountant, who will determine which system is best for them based on the project requirements.

“The ideal is that an accountant tells him which system suits him best, what activity is taken into account, what product or service is offered, and what income is expected. Once this is defined, a decision can be made.” For new companies Simplified escrow system “It adapts very well; for individuals, the rate is between 1.5% and 2.5%, said the accountant Roberto Coln Mosqueda, member of the Technical Tax Commission 2 of the College of Public Accountants of Mexico.

In addition, the accountant explained that for legal entities, there is a regulation established in the Income Tax Law for simplified joint stock companies, which is also recognized in the General Law on Commercial Companies, where the type of company can be registered on a platform developed by the Ministry of Economy, which is free.

Surround yourself with experts

Many entrepreneurs believe that contacting experts is a high cost that they cannot bear. However, the advantages of reception are With the right advice, many potholes in learning can be avoided, as Jonathan Aguirre, professor at the Banking and Commercial School and expert in entrepreneurship and business, mentions.

“Entrepreneurs think they can handle the entire business on their own, but at some point there will be something they are not experts in, and they need people who focus on economics, finance, market, etc.” This is the only way to get a comprehensive vision of your company”, Jonathan finished.

World Nation News Desk
World Nation News Desk
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