Owning a small business in Cyprus nowadays can prove challenging – especially when trying to avoid becoming a statistic. Close to 50% of businesses won’t survive over 5 years as shown in surveys, which is where accountants come in.
Research shows that the longevity of a business is closely tied to the relationship one has with his professional financial advisor.
The business owners who cooperate and have a first-rate relationship with an accountant have a 42% survival rate compared to 27% of those whose company wasn’t successful. It is noteworthy that 65% of failed businesses believe that financial mismanagement is responsible for their failure.
If you want to be on the safe side when it’s time to file taxes and you want to avoid becoming a statistic, working with an accounting professional who will advise you, file and prepare what is necessary, and keep your financial data up-to-date and correct, will ensure the longevity of your business.
1. The Tax Code Is Trickier Than It First Seems
When it comes to tax law, a labyrinth comes to mind, since it is intricate and changes regularly in most European countries. Cyprus is an exception, but trying to keep up to date with the latest information and trying to interpret any new addition in the tax law can prove time consuming for small businesses that are busy enough without adding “read the tax code” to their daily agenda. Accountants and bookkeepers are there to expertly guide you through this labyrinth. Furthermore, you won’t find yourself suddenly owing the Cyprus Tax Department a large amount of money, not to mention the possibility of you missing out returns.
2. Earnings Aren’t Always As They Seem
If you are into purchasing or selling stocks and you have restricted stock units or stock plans and options or just purchased a house, calculating taxes or Capital gains can be rather tricky and risky, at the least. If the math doesn’t work out you can land up paying more than you expected.
3. Who Doesn’t Like A Deduction?
Tax time for many small business owners can be confusing especially when working out if something counts as a deduction or not. When you work together with an accountant, not only will you be able to work out what you spent over an entire year, but he will also help you avoid paying more taxes than you are eligible for by identifying your tax credits. Keep in mind that tax preparation fee might count as deduction as well.
4. More People No Longer Just Have One Job
The On – Demand economy in Cyprus is continually changing the labour market, resulting in a multitude of people making money on the side or freelancing, thereby making tax returns more complicated, time consuming and tricky. If you add purchases that have been made in the year, especially ones that require substantial amounts of money, then things become more complicated. It is not as simple as just filling in some forms, or answering a couple of questions. What is required is expert support that will guide you through this successfully.
5. Filing Taxes Is a Risky Business
You might have the technology which enables you to file your own tax returns, and some know how as well, but if you don’t have a professional accountant guiding you through the Labyrinth that is tax code, you might be in for an unpleasant surprise. ‘Paying for your mistakes’ will be literal in meaning when you end up paying more money than what it would have cost you to hire a professional to begin with. Having your own business means that you are prepared to take risks, but when it comes to taxes, you will do best without it.
Running a business requires important decisions on a daily basis. One of the most crucial and ‘clever’ decisions you’ll have to take is hiring a professional who will expertly guide you and be on your side when you need him. This will ensure the success and health of your small business in these difficult times.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is the best Tax solution(s) for your business,
- What Banking and cash flows arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands that already did.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.