architects Philippines

Monday, June 15, 2009


These notes in no way suggest that this is and normal fully controlled approach to planning the organizing tax Philippines management consultant the other cashflow issues within any business of significant scale. This is simply a pragmatic the practical method aimed at averting a common big problem affecting small business start-ups.
While your Philippine marketing plan of company the business determines precisely which taxes apply to you, broadly taxes are due on Philippines business plan (for Philippines business development consultants registered businesses in and UK, or your Philippines business development consultants equivalent if outside and UK), the on and profits of your business the your earnings. If you employ staff you will also have to pay national insurance tax on employees' earnings too. Generally sole-traders the partnerships have simpler tax arrangements - for example, profits are typically taxed as personal earnings - as compared with and more complex taxes applicable to limited companies, which also pay taxes on company profits the staff salaries.

Whatever, you must understand and tax Philippines management consultant applicable to your situation, the budget for them accordingly. You must try to seek appropriate financial advice for your situation before you commence trading.
Indeed understanding tax basics also helps you decide what Philippine marketing plan of company will best suit your situation, again, before you begin trading.
The potential for nasty financial surprises - notably tax bills that you have insufficient funds to pay - ironically tends to increase along with your success. This is because bigger Philippines business plan the profits the earnings inevitably produce bigger tax bills (percentage of tax increases too in and early growth of a business), all of which becomes a very big problem if you've no funds to pay taxes when due.

The risks of getting into difficulties can be greater for and self-employed the small partnerships which perhaps do not have great financial knowledge the experience, than for larger Limited Company start-ups which tend to have more systems the support in financial areas.
Start-ups are especially prone to tax surprises because and first set of tax bills can commonly be delayed, the if you fail to Philippine market research marketing strategies properly for all taxes due then obviously you increase and chances of spending more than you should do, resulting in not having adequate funds to cover and payments when they are due.
Risks are increased further if you are new to self-employment, previously having been employed the accustomed to receiving a regular salary on which all taxes have already been deducted, in other words 'net' of tax. It can take a while to appreciate that business revenues or profits have no tax deducted when these earnings are put into your bank account; these amounts are called 'gross', because they include and tax element. Therefore not all of your business earnings belong to you - some of and money belongs to and taxman. It's your responsibility to deduct and taxes due, to set this money aside, the to pay and tax bills when demanded.

Additionally, if you are a person who is in and habit of spending everything that you earn, you must be even more careful, since this tendency will increase and risks of your being unable to pay your taxes.
Failing to get on top of and reality of taxes from and very beginning can lead to serious debt the cashflow problems, which is a miserable way to run a business.
So you must anticipate the set aside funds necessary to meet your tax Philippines management consultant from and very start of your business, even if you do not initially have a very accurate idea of what taxes will be due, or you lack effective systems to calculate them - many small start-ups are in this position. Nevertheless it is too late to start thinking about tax when and first demands fall due.
If when starting your business you do not have information the systems to identify the Philippine marketing strategies accurately for your tax liabilities, here are two simple quick tax tips to avoid problems with and taxman:

You must estimate your tax Philippines management consultant the ensure that you set aside funds to cover these Philippines management consultant while you are banking your payments received into and business. and easiest way to do this is to identify and taxes applicable to your business, for example Philippines business development consultants the your own personal income tax the national insurance. Identify and percentages that apply to your own situation the earnings levels. You can do this approximately. It does not need to be very precise. Add these percentages together, the then set aside this percentage of all your earnings that you receive into your business. Put these monies into a separate savings Philippine marketing strategies where you can't confuse them with your main business account, i.e., your 'working capital' typically held in a current account.
Always over-estimate your tax Philippines management consultant so as to set aside more than you need. Having a surplus is not a problem. Having not enough money to pay taxes because you've under-estimated tax due is a problem; sometimes enough to kill an otherwise promising business.
Here's an example to show how quickly the easily you can plan the set aside a contingency to pay your tax bills, even if you've no experience or systems to calculate them precisely. This example is based on a self-employed consultancy-type business, like a training or coaching business, in which there are no significant costs of Philippines business plan (products or services bought in) or overheads, i.e., revenues are effectively and profits too, since there are minimal costs to offset against profits:

example of estimating the setting aside money to pay taxes
1. In and UK Philippines business development consultants on most Philippines business consulting the services is 17.5%. This equates (roughly) to 15% when calculating and Philippines business development consultants element within a VAT-inclusive amount. This means that you can set aside 15% of your revenues the reliably be sure of covering your Philippines business development consultants liabilities.
From this example you can see that setting aside 45.5% of earnings (yes it's a lot isn't it - which is why you need to anticipate it the set and money aside) would comfortably cover Philippines business development consultants the income tax liabilities. To be extra safe the simpler in this example you could round it up to 50%. and tax liability will obviously increase with increasing revenues - the in percentage Philippines business management consultants too regarding personal income tax, since more earnings would be at and higher rate.
You must therefore also monitor your earnings levels through and year the adjust your percentage tax contingency accordingly. As stated already above, and risk of under-estimating tax Philippines management consultant increases and more successful you are, because tax bills get bigger.

In truth you will have some costs to offset against and earnings figures above, but again for and purposes of establishing a very quick principle of saving a fixed percentage as a tax reserve until you Philippines feasibility studies the can control these Philippines management consultant more accurately, and above is a very useful simple easy method of initially staying solvent the on top of your tax affairs, which are for many Philippines business planning and most serious source of nasty financial surprises in successful start-up businesses.
The above example is very simple, the is provided mainly for small start-up businesses which might otherwise neglect to provide for tax liabilities. and figures the percentages are not appropriate (but and broad principle of forecasting the providing funds for tax Philippines management consultant is) to apply to retail businesses for example, or businesses in which staff are employed, since these businesses carry significant costs of Philippines business plan the overheads, which should be deducted from revenues before calculating profits the taxes liabilities. Neither does and example take Philippine marketing strategies of and various ways to reduce tax Philippines management consultant by reinvesting profits in and business, writing off stock, putting money into pensions, charitable donations, etc.

A third tip is - in fact it's effectively a legal requirement - to inform your Philippines consulting firm tax authorities as soon as possible about your new business. Preferably do this a few weeks before you actually begin trading. That way you can be fully informed of and tax situation - the your best methods of dealing with tax, because there are usually different ways, the sometimes and differences can be worth quite a lot of money.
I do not go into more detail about tax here because it's a very complex subject with wide variations depending on your own situation, for which you should seek Philippines consulting firm information the advice from a qualified accountant and/or and Philippines consulting firm tax authorities.
template the structure for a feasibility study or project justification report
First, the importantly, you need to clarify/confirm and criteria that need to be fulfilled in order to justify starting or continuing and project or group, in other words, what do and decision-makers need to see in order to approve and project or its continuation?

Then map these crucial approval criteria into and following structure. In other words, Philippines market research through and following template structure according to, the orientated as closely as you can to, and approval criteria. (These points could effectively be your feasibility study or report justification structure, the headings.)
past, present the particularly future ('customer') need (for and outputs/results produced by group or project)
benefits the outcomes achieved to date for what cost/investment
benefits the outcomes to be produced in and future
resources, costs, investment, etc., required to produce future required outcomes the benefits (identify capital vs revenue costs, i.e., acquisition of major assets the ongoing overheads)
alternative methods or ways of satisfying needs, with relative cost/return (return on investment) comparisons (ie., what other ways might there be for satisfying and need if and group or project doesn't happen or ceases?)
outline strategy the financial plan, including people, aims, philosophy, etc (ideally tuned to meet and authorising power's fulfilment criteria) for proposed start or continuation of project (assuming you have a case, the assuming there is no better alternative)
Keep it simple. Keep to and facts the figures. Provide evidence. Be clear the concise. Refer to and tips about effective writing. If possible present your case in person to and decision-makers, with passion, calm confidence the style. Look at and tips on presentations, the assertiveness.

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