As the 2022 tax year for businesses is upon us, it is important for accountants and taxpayers to start preparing for the upcoming tax year. These recommendations are essential to ensure that the preparation for the 2022 tax year runs smoothly and successfully.
SOME RECOMMENDATIONS FOR THE 2022 TAX CLOSING
1. Have a firm with expertise in tax issues. Understanding the tax code is essential to preparing for the period-end closing. Accountants should be aware of the latest changes in the law and reporting requirements.
Review all existing expense deductions. Deductible expenses can help your clients lower their income taxable income. These deductible expenses should go in the production of the company’s income for example, the use of commercial vehicles and their depreciation, maintenance, deductions generated by the production of income at the source, deductions for donations, salaries and other remuneration, deductions for travel expenses, labor reserves, reserves for bad or uncollectible accounts. An important fact is that all these expenses must be supported by invoices that comply with the formalities required by law to be deducted.
3. Review the tax closing policies. Make sure you understand your company’s tax closing policies. These tax closing policies may include such things as when tax reports must be filed, investment limits, expense limits, and provisioning for the tax that the business will be required to pay on its operations.
4. Use appropriate accounting software tools. The use of accounting software tools is a great way to save time and make sure that all reports are filed in the correct way, disclosing the beneficiaries and their corporate names or individual names, with their RUC numbers, and other details required by law. These tools can also help ensure that all data is correct and that reports are accurate and reliable.
5. Verify accounting activities. All financial reports should be verified before they are submitted. This will help ensure that all data is correct and that reports are accurate and reliable.
6. Planning. Planning ahead is one of the best ways to ensure that the tax closing goes smoothly. This means planning ahead by creating an advance provision for the taxes the company will be taxed on when it formally files its income tax return.
7. Establish a tax closing schedule. Establishing a tax closing schedule will help ensure that all reports are filed on time and smoothly. This can also help taxpayers ensure that all deadlines are met.
By following these recommendations, accountants and taxpayers will be better prepared for the 2022 tax close. These recommendations will help ensure that the tax closing goes smoothly and successfully.