Although, there can be multiple reasons due to which everyone should think about hiring of specialist and professional tax agents. However, people usually envisage their services for lodging of periodic tax returns. Attention should be drawn here that their services are lot more than filing of business tax return. For example, they also provide guidance and professional advice regarding a) tax planning b) tax avoidance c) business acquisitions and disposals d) advice regarding routine sale and purchase transactions e) coordination and communication with revenue authorities and lot of other things to consider. That is why no business either of a small scale, medium sized enterprise or a large-scale organization, can even think to operate without hiring a competent and experienced tax agent. Moreover, it is also pertinent here to mention that apart from corporate perspective, people also hire these professionals for individual lodging of income tax returns. Like, some individuals might earn salary income, some run their small size ventures (business income) etc. In every state, every corporate entity and individual who is deriving any source of income is bound to lodge its annual income tax return. So, no one can deny that hiring of professional tax consultants is very important. Some other reasons for recruiting them include:
Aid in strategic planning
For large scale companies, everyone knows that successful strategic planning and its implementation is highly important. No business can fetch its corporate, business and operational objectives without assuring proper planning and execution. Here, as every transaction and event have tax consequence, don’t you think without seeking advice of a professional, you may have to suffer a lot while planning future aspects? Of course, that is why senior management or those charged with governance always prefer to hire professional tax consultants who can timely assist and furnish their valuable advices.
Lodging of Annual or periodic Returns
Of course, major reason of recruiting tax consultancy firms is to lodge and file Annual or periodic tax returns. For income tax and sales tax (VAT) perspectives, without tax backing online, it would be very difficult for any business to operate and compete because it is a compliance issue. In case of any non-compliance, your business will have to suffer financial and non-financial losses. Financial losses may pertain to fines or penalties imposed by regulatory authorities. As far as non-financial losses are concerned, your business may expose to risk of reputation or goodwill loss and ultimately may be ceased to operate on account of non-compliance. So safest and best solution is to hire professional tax agents who always remain you complied with laws and regulations.
Coordination with regulatory authorities
As stated above services of tax back online agents is not only restricted to lodging income and sales tax return on timely basis, attention should be given that another important aspect of their services is that they present your company/business before taxation authorities. Usually, revenue board and authority furnish notices to taxpayers and require them to furnish records, documents, invoices, accounts and other supporting material. Under these situations, there is always a need of recruiting adroit tax consultancy firms who coordinate and negotiate with regulatory authorities and always try their best to yield favourable outcome.
Assistance for finance department
Finance function of any organization is primarily engaged in preparation of accounts. As you know major line item in profit and loss account and balance sheet is taxation expense for the year and advance tax asset or liability respectively. It means that without hiring a reputable tax agent, it might be possible that your finance department remain in vain for preparation of financial statements which give true and fair view. That is why you might have seen that tax consultants always work in coordination and liaison with finance department of an organization.
Hence, from above it is very easy to evaluate the importance and essence of the services of tax agents. Now, denial should never be constructed on this reality that their services are far more than mere lodging of business tax return. Remember that in order to compete successfully, every business without thinking on cost must engage professional tax experts due to above stated reasons.