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A tax accountant is a familiar phrase for any business. When a company is born, it is imperative to have a tax accounting department for the business to operate and survive under the management of the law.
Here’s find out how important a tax accountant business is.
What is a tax accountant?
A tax accountant is an accountant in charge of tax declaration issues in a business. Tax accounting is an obligation of companies to the state. The state can only manage the multi-sector economy when there is tax accounting. On the contrary, businesses can only do stable and favorable tax reports when making clear tax issues.
What is the function of a tax accountant?
When starting a company, the tax accountant is the part that declares and pays license fees. Then, during the operation of the business, the tax accounting department will perform the following tasks:
- Gathering invoices and arising documents of the enterprise for tracking and accounting.
- Prepare month-to-month and quarterly tax reviews and pay taxes to the business enterprise.
- Prepare economic statements, year-cease tax reviews, company profits tax, and private profits tax reviews.
- Directly work with tax authorities when problems arise.
- Check and compare the value-added invoice with each establishment’s input and output tax list.
- Prepare a monthly report summarizing the value-added output tax of the whole company, classified by the tax rate.
- Prepare a monthly report summarizing the value-added input tax of the whole company according to the deductible output allocation ratio.
- Monitor reports on state budget payment, budget backlog, and a tax refund of the company.
- Compare tax reporting records of institutions among the document and the last settlement.
- Prepare tax refund records when incurred.
- Prepare tax summary reports periodically or irregularly.
- Check input invoice.
- Check the report on the use of tax invoices to report to the tax department.
- Timely update information on tax laws, and prepare notices of operations related to the company’s production and business activities for the establishment to know how to implement.
- Business income tax planning, budget payment.
- Update tracking of invoice delivery.
- Monthly, quarterly reporting on the use of invoices in the period.
- And other jobs related to tax accounting of the business.
With the complexity and diversity of the above jobs, it can be seen that the responsibilities of the tax accounting department are weighty, requiring the person to take this position not only with professional knowledge but also with experience and expertise. Sensitive to handling situations that may arise for the business.
What is tax planning?
Optimizing, rather than minimizing, or not paying taxes. Tax planning is the optimization of tax payable within the framework of the law. Mitigation is the reduction of tax owed, but its consequences may be to increase some other costs or violate tax laws. In other words, we can accept an increase in the tax payable if the growth rate of taxes is lower than the growth rate of income. To do this, tax planners must have an overview of taxes and coordination between departments in the business.
Simple and effective tax planning
Tax planning requires an accountant with many years of experience, knowledge of taxes, and coordination with other departments to achieve high efficiency. Tax planning forms and methods depend on the person directly implementing them. However, for tax planning to be effective, it usually has to go through 3 steps:
1. Review the operation process of the enterprise:
Several cases often occur, causing loss of costs of the business:
- When accounting vouchers are available, the departments do not carefully store them, roll them up, tear them, write words on the vouchers, or lose them or transfer them for the accounting department to delay.
- The director went to receive guests and did not take the invoice back for the accountant to declare. In total, this cost is very high in a year. If used well, it can be enough to pay the salary for the entire accounting department from 2 to 3 months. This is a very high cost for small and medium enterprises.
- The process of purchasing input materials is not strict, many input documents are missing, and there are not enough documents to explain the costs when tax settlement. Leading to actual costs but still being eliminated.
- And in many other cases, each department causes a loss of tax costs at each stage. At that time, the burden of tax balance rests on accountants. They have no choice but to help businesses evade taxes, such as buying fake invoices, hiding revenue, or correcting incorrect data. When making tax finalization, the penalty for enterprises is very high if detected.
2. Tax planning:
After reviewing the operation process, it is possible to identify the stages that cause the loss of actual costs of the enterprise. At this time, tax planning is highly effective. This step includes several tasks such as:
- Estimated revenue, expenses, and payable taxes arising in the year
- Listing documents and documents to explain the revenue and expenses of the business when deciding tax accounting, avoiding the exclusion of actual costs incurred.
- List tax avoidance and tax balancing plans suitable for businesses not prohibited by tax law.
- And some other balances depending on the characteristics of each business.
3. Work allocation, execution, reporting, and inspection:
- After the tax plan is made, it is necessary to put it into practice, regularly report and check the progress monthly, quarterly, and yearly. Settlement plan: The annual tax payable will not change much compared with the tax plan.
- And businesses have also prepared money for tax payments so it does not lead to money shortages and tax debt,…
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