I was always told as a child that honesty is the best policy, now as an adult and parent myself, I too am teaching my children about being honest. This got me thinking about being honest in business. Business reporting that is.
Back in the old days (as the saying goes) cash was king and a bit of under the table was pretty standard in small business. But with the advancements in technology, the near extinction of physical cash and, hopefully, the change in people’s attitude, are we moving towards more honest business reporting?
Here are some of the benefits of honest business reporting:
- - Convenience
Being a small business owner is challenging enough as it is. Sometimes it seems as if there aren’t enough hours in a day. With access to technology and automation, keeping track of your business numbers is now easier than ever before, meaning less stress to keep up with the bookwork. However, add in your under the table dealings and things just go back to being messy and time consuming.
- - Culture
When you are honest and run your business above board, so too will your employees. Unfortunately employee theft is common in many industries where under the table transactions occur. What example do you, as the business owner, set to your employees?
Reporting your figures as they actually are means you are able to realistically review and analyse your business. You can assess where your business is at and what you need to do to achieve your goals.
- Potential Buyers
There are two ways to get rid of your business; sell it or close it. Selling your business is attractive as you get back some of the effort you have put into the business. Thanks to technology, potential buyers are becoming more aware and savvy when it comes to buying businesses, meaning they are looking for detailed and historical information. When your books aren’t honest, it makes it very difficult to confidently convince potential buyers your business is for them.
- The Tax Man
Our tax system works on the self-assessment system, meaning you as the taxpayer need to ensure that what you report is true and accurate. Heavy penalties are imposed if you are found to be misleading the tax man and essentially the community. Thanks to the changing technological landscape the Tax Office is able to develop more cunning programs and tools to help them identify tax avoiders, businesses will find it increasingly harder to remain undetected. Don’t let you or your business be another statistic for the Tax Office. The consequences are (in my opinion) not worth it.
Your business is your livelihood. There are better ways to be tax effective without the need to be dishonest. There are plenty of opportunities within the legislation and utilising the right structure that make it possible to reduce the bill to the tax man.
Are you ready to be honest?
Get in touch with us to make it happen.
Your business will thank you for it.