People planning to start a business often try to keep costs down, especially in the initial phase. As a result, they may be tempted to save money by not hiring a tax adviser. Preparing a cash-basis accounting statement when revenue is still manageable may seem like a quick side task.
In reality, consulting a tax adviser can pay off twice over. First, aspiring founders save a great deal of time that they can put to better use in their own business and in acquiring customers. Even someone who is good with numbers will need to invest considerable time in learning the details of tax law and accounting methods. Second, bookkeeping errors can be costly. Plausible figures are needed as soon as the business opens so that the tax office can calculate advance payments as realistically as possible. The private-use portion of a car or telephone, correct accounting for a home office, travel and business entertainment expenses—the devil is in the details. These tax details can lead to an unpleasant surprise at the latest when the annual accounts are prepared.
An initial consultation is recommended to help assess whether a tax adviser is needed. WiReGo offers people planning to start a business financial support for consulting services through its advisory fund and the Advisory Network. This makes it possible to shed light on the tax maze from the start without incurring excessive costs.
