Question

describe in your own words(150) the importance of being able to communicate effectively with businesses during tax season.

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Answer 1

Effective communication is very important in a business environment.

It is very necessary for a business orgainsation to deal with the employees and outsiders such as vendors and clients.

As accounting and book-keeping is an intrinsic part of any business so therefore good communication skills are very vital in this area.

Finance tasks such as preparation of a budget, reporting, payment of bills, payroll information , and recording income needs to be presented before the management properly.

If the management will receive the meaningful information then it will help to take right decisions on right time.

An investor who is always interested that how a business is doing financially so very necessary to communicate right accounts books in the form of balance sheet, income statements prepared using generally accepted accounting principles.

Business owners generally work with the tax preparer to make them understand about their industry and area of operations.

Tax laws are ever changing.

A business owner need to remain updated with the same.

Finding the right tax preparer is very difficult.

The key to successful relationship between a business and a preparer is that how quickly both the parties respond to each other's questions.

As the tax prepareres charges the fees based upon hour basis so if the bsuiness owner responds late then a slow response can become very expensive for the bsuiness owner.  

Also if the bsuiness owner responds quickly then there will be no delay in filing returns as the preparer will make the same on time and there will be no chances of penalties and voilations.

For submittting the correct information to the taxpayer it is very important for the bsuiness owner to hire a good accounting staff or a bookeeper.

Always keep an imagination in your mind that what your taxable income should be and then have discussion with the preparer.

Always ask the preaparer that any tax incentives applicable on your business so that the tax burden can be reduced to a certain extent.

At the end I would like to say that business owner is only the main person who gives a idea about the bsuiness so the tax implication depends on the type of information submitted by him. So it is therefore it is in his hands either to reduce tax or increase depending on the nature of particulars submitted.