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Maintaining of a financial record is a must because there will be lot of money that will pour in and will go out also Only the individuals who study accountancy will know the value of an accountant in an organization The development of the business depends upon the maintenance of records in a proper manner by a qualified accountant and every businessman starts his business to earn profit and develop his business. Accountancy plays a major role in the tax planning. For the tax planning a session is conducted in every organization. The method of imposing a tax is a financial charge or a levy upon a tax payer by the State or the functional body equivalent to the State and it is punishable by law if it is not paid by a tax payer.
The individual or the owners of the property has to pay tax which is a pecuniary burden in order to support the government. Tax that is levied on the income of an individual or a business is called an Income tax. The income tax can be progressive, proportional or regressive As compared to individuals small businesses are more prone to risks. It accounts to tax planning when an individual reduces his burden of tax payment to the Government by availing to maximize the deductions. If you report the income as a small business owner then the risk of getting audited is very high A payroll service is hired by the Companies to make the tax contributions along with each pay day. The business owners need not worry as long as his tax return is made accurately according to his business record and reasonable deductions are availed by him.
The correct tax planning is done by the accountant, who is responsible in obtaining the required profit. To help the development of State, tax planning is carried out in a planned way. The development of the State tax payers who live out of any other federally declared disaster areas depends upon the Tax planning carried out in a planned manner but the tax return preparer if situated in any of the disaster areas will have a week’s extension to file the returns. This will include both the corporate and partnership returns Different tax software programs were tested and found out and each software programs are available through three tax scenarios provided the software is up to date on the latest changes in the alternative minimum tax Hence maximizing of profit will depend upon the best accountant hired by any business man. Proper decisions about the allocation of resources of Managers, investors, tax authorities and many other can be done with their help.