Startups are an important part of any economy, and many have gone to achieve success. But it is also a fact that it isn’t easy to launch one. In fact, according to reports, more than 50 percent of startups fail in their first 12 to 18 months of operations (the percentage climbs up to 80 percent in countries like the United States).
This is because of the many hurdles and challenges a startup founder has to face—from dealing with operational details of the business to tax issues.
Taxation, in particular, can be quite tricky for business, which is why startups should consider getting tax accountants Cardiff for their business.
The dangers of non-compliance
Many startups deal with corporate non-compliance. This happens when a business does not adhere to the wide range of laws pertaining to corporate entities and their operations.
Aspects of the business where compliance is necessary include wage, hiring, and licensing. Good tax accountants Cardiff should be able to properly make you compliant with tax regulations by fixing your payroll and, most importantly, filing your federal and state taxes. When applicable, they can also collect your sales tax
While you may feel like you are capable of doing this yourself, only accountants Cardiff can make sure that you remain compliant every step of the way. Making a single mistake in filing your taxes in wages and hiring, for instance, can mean a hefty fine, which could be detrimental to your startup.
The little details
A startup should consider getting accountants Cardiff even before they set up shop since they can help businesses figure out paperwork relating to taxes and corporate compliance. For instance, an accountant will be able to determine early on what type of business an entity should file itself as. A wrong filing could either mean unnecessarily higher taxes or fines later on.
Is the startup a sole proprietorship? A general partnership? What kind of corporation is it? Tax accountants Cardiff can help startups sort out the nitty-gritty of setting up a business, thus saving them money from wrong tax declarations.
Filing the tax itself can also be tricky without the help of accountants Cardiff as there are many considerations to think about and requirements to fix—from simple items such as tax IDs and choice of legal entity to fixing and settling contractor issues.
In truth, accountants are a necessity in a startup as they can make real-time decisions for business owners, helping them calculate risks and consequences in areas that require quick judgment.
They can also save the business owners time since the accountants can do a lot of the tax and financial work for them—hence allowing them to spend more time on other important aspects of the business. Accountants, of course, can also detect the right tax deduction potentials in your business, saving the startup money and allowing it to operate for a longer period of time, giving it a higher chance for success. Hiring an accountant is like a startup planning for the fiscal future of the company.