March 31 is the deadline for filing the annual corporate tax return.
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February 23, 2021 4 min read
March 31 is the deadline for filing the annual corporate tax return . This fiscal obligation is a great opportunity for SMEs to evaluate their finances and improve their resource management. Despite this, for the majority of SMEs , the annual declaration remains a very complex task.
Many of the SMEs rely on their accountants to carry out this process, but all accountants depend on SMEs to have all their documents complete and organized. In essence, there are two factors that make the declaration process difficult: 54% of SMEs carry out their accounting processes manually and 61% do not constantly monitor their accounting, according to a study carried out in Mexico .
“This situation creates a disadvantage at the time of making the annual declaration,” explained Julien Blaise, marketing head of QuickBooks Mexico . “Simplifying and modernizing their processes allows them to eliminate errors when sharing their information and avoid the fines generated by delays in the delivery of results. In addition, by allowing them to have a continuous review throughout the year, it will facilitate follow-up with their accountant and their services ”, he added.
Filing the return on time avoids fines and eliminates the risk of incurring tax crimes. On the other hand, it can become an advantage to optimize resources through these simple steps.
Be clear about the result of the annual accounting close
A good balance sheet of a business reveals the machinery of daily operations for an entire year. In the declaration, it is important to check that the closing corresponds to the year to be declared. Then, the relationship between invoices receivable and payable should be included, without neglecting any outdated invoices. Finally, you have to know exactly what the total profit of the business was. The important thing is that all documents reflect consistency in operations.
Keep the payment information at hand and perfectly organized
One of the most common mistakes when filing the return is neglecting to record the information. The best way to prevent this from happening is to have it in order and consolidated in a single system to verify that the data pre-filled in the SAT portal correspond to the declared monthly exercises. On the other hand, having the generated invoices on hand allows you to validate the data to make deductions.
Identify deductible expenses
Receiving a credit balance depends to a great extent on whether the deductible expenses recorded are applicable for the business line. The categories of deductible expenses include purchase of merchandise, expenses related to business operations, health services, contributions for worker savings or tuition payments, as they are considered essential.
How to make this process easier?
The formula simply consists of combining three basic elements that every SME should consider: professional tax and accounting advice, planning in advance and using administrative and accounting software that allows them to have a record of all their information immediately and at hand. Along with good advice and planning, accounting software allows you to spend less time and resources doing these tasks. It also facilitates the relationship with the accountant and makes his advice more strategic for the business.
Financial and accounting management technology not only makes the annual declaration of a business easier, but also allows having finances more controlled and easier to understand to make better decisions. This 2021, digitizing accounting processes is a small step for SMEs that can bring them great benefits.