Payroll tax software: Tax tips for small businesses
The success of a business is generally defined by the size of its profit margin. Companies that have large amounts of money left over after all expenses have been taken into account are considered to be more successful that those that only make a small final profit.
Boost your company’s earnings without increasing your revenue by paying by finding legal ways of paying as little tax as possible. Of course, all business owners are legally obliged to pay the correct amount of tax to avoid prosecution. There are, however, legal ways in which to avoid paying unnecessarily tax.
Payroll tax software is a useful tool that, if used correctly, can help you to save money. Read the following tips for some suggestions on how to legally avoid paying the government more tax than is due.
Best tax tips to help your business to save money
• Use payroll tax software to pay your employees
Using payroll tax software will not only help you to pay your employees accurately, it can also assist you to make the correct deductions from their salaries before they receive them. The reason these deductions are held back is because the government does not require that your employees pay tax on these payments. Deductions such as medical aid and pension contributions do not get taxed if they are deducted before a salary is received.
In some instances, a company will make a contribution towards an employee’s medical aid or pension. This contribution is also tax deductible. Payroll tax software provides a convenient way to keep track of contributions that you make on behalf of your employees, and to avoid paying tax on these deductions.
• Consult a tax specialist
Businesses are allowed to deduct tax from a variety of different expenses. Some of them are fairly obvious and have become standard entries on a tax return form, but there are many that a small business owner may not be aware of. A tax specialist is well-versed in many different ways of legally avoiding unnecessary tax payments. In addition to identifying the areas in which you can avoid paying tax, a specialist can also make sure that you are not accidentally making any illegal deductions.
• Consolidate your finances
Keep all of your finances consolidated by using one brand of accounting software. Companies like QuickBooks offer comprehensive business financial software packages that include accounting programs, as well as payroll tax software. Not only will this make it much easier for you to see an overview of your profit margin, it also makes a good impression if you are ever audited. If your finances are neat and orderly, an auditor is less likely to look for errors.
Beat the taxman with payroll tax software
Many small business owners find the process of paying taxes a chore that never seems to end, but with the correct small business software it needn’t be. Contact QuickBooks now to choose from our wide selection of accounting software.
QuickBooks SimpleStart - for new and home based business
The simplest way to manage and track money going in and out of your business.
QuickBooks Pro - manage your business accounts simply and easily
Manage your business accounts simply and easily.
QuickBooks Premier - fast and easy advanced accounting
Fast and easy advanced accounting.
Quick Payroll is designed to meet the fast growing needs of dynamic South African SMEs.
It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
Quick Payroll Lite is designed to meet the fast growing needs of dynamic South African SMEs. It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll Lite interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Lite is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
Quick Payroll Startup is designed to meet the fast growing needs of dynamic South African SMEs. It simply manages all aspects regarding payroll, including payroll calculations, leave registers, report writing, tax year-end, and more. Quick Payroll Startup interfaces seamlessly with QuickBooks accounting software, which means your general ledger journals will automatically update.
Our solution automatically provides new tax law or statutory upgrades as they arise, keeping you on the payroll cutting edge. What is more, our Quick Payroll Startup is so flexible; it can be used in any industry sector, injecting value into your company, employee and client relations across the board.
