By: Kmar Henry
Edited by: Sheryl Bailey
With probably one of the most drastic and dreadful years in the history of business coming to an end. Many entrepreneurs are now looking towards the year 2021 to bring some form of recovery and recuperation in light of gaining some form of added revenues and stability. Clearly, we will have some right at the edge of depleting cash reserves, and some just mustering up the backlash from closing to reopening. Thus, it is easy for businesses within this type of turmoil to put Tax Filing requirements and regulations aside for a while, as recuperating fully is just primarily the correct thing to do. However, it’s important to note that in spite of these challenges, there are some form of leverage that may be gained once timing is done that business owners must take advantage of. Especially in the category and forelooking of years to come. Hence, putting those documents in terms of revenues, expenses and assets bought or should we say squeezed throughout the year should be on the to do list for business owners as assiduously as possible.
Why file early?
Filing early has always amount to tax payers feeling a sense of ease from skipping the mounted rush and turmoil experience at the tax office during the ‘March madness filing period’. As the time period to plan and implement how to tackle taxes due will just feel a little longer. Hence, covering these balances will just be or seem more at ease when it can be done under a less time strident manner. As a matter of fact, it can be said that most tax payers or business owners take themselves away from the audit circle when Tax measures are not only implemented correctly via the tax laws stipulated by the government but also when tax filing is done on time and in its correct yearly fashion.
Many will make and file a loss
Of course, with the mounted challenges faced in 2020 due to the tight regulations implemented on the movement of people to low down the spread of the COVID-19 virus. This has caused many businesses to experience major cut in revenues thus making it evident that survival was just the optimum goal for what analysts are calling one of the worst years in business history. Hence, our business operators should not shy away from seizing the opportunity to file at a loss if made, as this will lead to subsequent tax credit that can be used to ease tax obligations for previous and future years. Especially with the added fact the government has made progress in implementing the new tax credit amount of $375,000 that will come into effect for the said COVID year of 2020. A stipulation that all small, medium and micro businesses should all seek to take advantage of when filing their IT02 and ITO7 Tax Return. Thus making it ever so great for Sole Traders to flip the script and change over to operating as a Company Limited entity.
The matter of survival as somewhat been lifted since the start of 2021, as government authorities and health experts continue to work assiduously to implement and plunge vaccines to stop the dominant movement of the COVID-19 virus. Thus, spear heading and shedding some form of light on the reoccurrence of normality for Business Oerators. However, it is with great reason that all business owners should now understand the importance of adapting and implementing the correct business models which will give them the ability to always stay ahead with health authorities. Also, the notion of having proper management systems which can supply the needed assessment of figures rightly gripped to how business is done will continue to be an essential stimulant in decision making and filing of taxes. Thus, let’s ensure that everything is done within our will to implement these essential initiatives.