I know it is much anticipated to talk about how to prepare for doing our taxes next year, but the months goes fast and then we are among the complications of not knowing how to get enough information to make our tax report complete. Note that by not showing all our income to the internal revenue department, they can adjust and in the end, we will have to pay more taxes or not have the credits that correspond to us.
Our suggestion is generally addressed to all those involved in transportation activities and especially those who are independent owners. They are the most affected when the time to prepare the tax report arrives. To assert this, we rely on several reasons. Among these reasons we find the lack of control and organization and most remarkable, the lack of knowledge of the tax laws.
Why do we mention the lack of control and organization in our work activity? These two factors are very important and necessary to have in mind. Remember that as independent owners, you are exposed to being subjected to certain dirty games made by transportation brokers and companies that you work with. In many cases, these companies report additional revenues without the owner operators realizing it, since not having the papers organized they cannot compare the report. From the moment you implement a control method you can determine how profitable your business is, how much fuel or what percentage is the general expense that is made on a particular trip or over a period of time.
What is the function of implementing the concept of organization in your small business? The organization is a complement of control. These two functions provide us a great benefit in order to be able to determine our future actions regarding the direction our business can take. When these functions are activated, we can have all the necessary information of the business activities available. All this information can be used to compare what brokers or companies report to us, make our taxes or present them to elaborate financial statements.
As we can see, having a business, big or small, means responsibility and obligation. It is important that we maintain our goals of growing the business and above all, keep our documentation up to date and ready for the time to prepare the tax report.