Every country has laws which govern how businesses operate. Regardless of whether the venture is small or large, business owners need to follow the regulations. After all, the government uses taxes to fund its activities and provide essential services. Most importantly, they create a conducive business environment for everyone. But for a small business, the hustle of starting a new venture makes owners miss deadlines. Apart from this, some wait until they are into profit. Sadly, postponing compliance can mean serious trouble down the line. If the pressure of running a small business is making compliance difficult, read our list of Mac-friendly tools and software that offer respite below.
Tax Regulations and Compliance Standards Relevant to Small Businesses
All countries have tax laws governing calculation, payment, and income reporting. However, the extent of complication varies between jurisdictions. Countries with large codes, like the United States, change legislation routinely. As a result, keeping up can be a hassle. Still, every taxpayer must fulfill their obligation, and ignorance is never an excuse.
Due to the pressure of running a business, the best way to stay on top of the situation is to leverage technology and automation. One such is using Mac OS software. QuickBooks, TurboTax, and a host of other tools guide users through filing and simplify data organization. If you’re struggling with your Mac device, use self-service Apple fixes to troubleshoot and solve the problem. Different laws come from various authorities, even within a country. For example, regulations from your municipality, state, host country, home country, and international laws.
Popular applicable laws to small businesses include value-added tax, income tax, excise tax, and more. Below are some regulations to note.
Income or Corporate Tax
Like individuals, businesses pay tax on their profits. Meanwhile, ventures registered as a corporation pay corporate ones. The amount is a percentage of profit, but the applicable regulation details how to calculate taxable profit. For instance, not all expenses are allowed as business expenses deductible from the income. Most regions require businesses to first register with a government authority. Then, the venture obtains a Tax Identification Number (TIN) or Employer Identification Number (EIN).
Value Added and Payroll Taxes
The VAT is another popular tax, one that applies to businesses selling goods or services. The VAT rates and rules vary between locations but often range between 0% and over 10%. In contrast, businesses that have employees must withhold and remit payroll taxes. This includes income tax and social security contributions. Employers file returns and provide employees with W-2 forms and other documents. Meanwhile, sole proprietors and partners pay self-employment tax in addition to any income requirements.
Depreciation and Deductions
Small businesses who own property, vehicles, and equipment account for the loss of value on them. Using this, they gradually write off the cost of the assets. In the same way, small ventures can deduct legitimate business expenses like rent and wages from taxable income. Other regulations are:
- Advance tax.
- Tax-filing deadlines.
- Healthcare insurance.
- Record keeping for income, expenditure, and deductions.
- Quarterly estimated taxes.
Mac-friendly Tools and Software that Assist in Maintaining Tax Compliance
The Apple ecosystem has a reputation for simplifying processes. Use the following Mac-friendly tools to maintain compliance with ease:
| Mac Software | Function |
| QuickBooks | Bookkeeping, invoicing, financial reporting, and tracking expenses. |
| Xero | It integrates with third-party apps for invoicing, bank reconciliation, and expense tracking. |
| Wave Accounting: | Invoicing, accounting, and receipt scanning capabilities. |
| FreshBooks | Invoice and expense management and time tracking. |
| TurboTax | Guides users through the filing process and helps to take advantage of deductions and credits. |
| H&R Block | Supports various tax forms for businesses with different needs. |
| Expensify | Categorizes business expenses and simplifies receipt capturing and report generation. |
| Avalara | Automates sales calculation and filing. |
Checklist for Small Businesses on Mac to Ensure Adherence to Tax Laws
Various laws apply to small ventures, each with its compliance requirement and due date. To reduce the confusion, use this checklist to adhere to the laws:
- Confirm your business is registered and obtain a TIN or EIN.
- List all applicable laws and the necessary forms and returns you need to file.
- Use a Mac-compatible software that suits your needs.
- Keep detailed records of income, expenses, and deductions for income tax.
- Track and manage sales tax collection and remittance.
- Provide W-2 or equivalent for employees and ensure proper withholding and remittance of payroll taxes.
- Pay quarterly taxes if applicable to cover income tax liabilities.
- Identify deductions to minimize taxable income and keep an eye out for available credits.
- Mark vital filing deadlines on your calendar and file reports on time.
- Stay informed about law changes to ensure ongoing compliance.
Conclusion
Compliance is a major hurdle small business owners face. But thanks to technology, you can simplify the process and spend less time on it. Most importantly, meet deadlines with exceptional accuracy. Use the Mac tools above to save cost but don’t be shy to ask for professional help when such conditions arise. Most importantly, always monitor for regulatory changes to avoid being left behind and erring in the process.
