September 14, 2020

Essential Setups for Tax Submissions

Reducing expenses is one of the primary objectives of any company. Although it must always be borne in mind that this reduction should affect productivity as little as possible. We therefore have to make an efficient cost reduction. This means that we must try to reduce investment in those superfluous factors, so that we are really eliminating unproductive expenses. You cannot reduce expenses in any way, because drastic decreases can lead to productivity problems that make us save in the short term and, however, have losses in the long term. 

Managers must establish a thorough analysis of each area, estimating the direct profitability of each action that requires investment. Although, we must also take care of other types of details that are not directly related to profitability, and that nevertheless also add value. Along with that as you file s crop you need the professional support there.

For example, customer service

This is a department that, apparently, does not generate direct economic benefits, and in which, however, we should not consider cuts lightly. Poor customer service can lead to a long-term drop in sales. For all the above, we are going to provide below a series of recommendations provided by Infocif, on where and how to cut expenses, in an efficient, controlled way and without affecting the proper functioning and overall development of a corporation.

How is the s corp Tax filed? 

 

  • As you know, the ordinary return, which must be submitted by the bulk of companies, is made through form 200. It is carried out, obligatorily, electronically at the electronic headquarters of the Tax Agency for filing s corp tax return. In the case of consolidated taxation, the parent company will present form 220. 

 

  • As for the liquidation itself, the ideal is that the tax to be presented should be no more than the rubric of everything planned by the company during the fiscal year. The settlement amount should not come as a surprise, but rather the natural result of tax planning carried out throughout the year with the help of the tax advisor. 
  • Regarding the formal aspects of the model to be presented, it should be taken into account that, in addition to the settlement itself, there is an obligation to provide multiple  information on the identity of the company, its partners, its investees, administrators , etc., as well as the full breakdown of the financial statements for the year.

Financing to have liquidity

Sometimes the activity of a company is perfectly profitable, but it runs into external factors that prevent us from making certain investments, weighing down the evolution of a business. Defaults, delays and delinquency in general are one of the main woes of the economy in Spain, which has led to the closure of many organizations in recent years. Having liquidity would allow making investments that, in the long run, would end up generating cost savings. For example, in the aforementioned adjustments in the energy field that, in many cases, requires an initial investment in certain types of equipment. Factoring can help maintain these cash balances, through the advance of invoices by a third party. In this way, Liquidity is achieved from the moment these invoices are issued, in exchange for assigning the collection and management of them.

 

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