5 Common Problems in Managing Business Transactions and Taxes

In the digital era, it should be easy to manage a company’s business transactions and taxes. However, it turns out that quite a few still encounter problems in its management. 

This article will discuss the general problems a company has in managing business transactions and taxes as well as solutions that can be implemented by these business people.

Business Transactions and Corporate Taxes

For business people, managing business transactions is daily bread. It’s just a matter of how to make the process more effective so that the company’s cash flow can run well and other matters such as company taxation can be managed according to the provisions.

In fact, business transactions and corporate taxes cannot be separated. These two things always go hand in hand. Care is needed in management, because if an error occurs, it will have a negative impact on the company itself. 

Usually, in managing transactions and taxes, companies will have different and separate divisions. The aim could be that each division can focus on what it does according to its expertise. 

However, this has recently been considered less effective because sometimes problems occur more frequently.

5 Common Problems in Managing Corporate Transactions and Taxes

Maintaining business stability is not an easy matter. In fact, many small businesses struggle and don’t even make it past the first few years. 

The problem of managing business transactions and corporate taxation is one of the reasons. 

Here are 5 common issues managing business transactions and corporate taxes that you need to know: 

1. Reconciliation

Many companies still do not apply the concept of reconciliation in managing business transactions and taxation. 

In fact, reconciliation is really needed to achieve synchronization between reporting entities in terms of recognition, measurement, recording and presentation of rights and obligations arising from a transaction. 

Reconciliation itself is the process of matching financial transaction data processed by several different systems/subsystems based on the same document. 

2. Silos

What is a silo? Silos are a system that separates different types of employees. 

Usually based on the department you work in, this will actually create obstacles in team collaboration and communication, as well as reducing efficiency and hindering the flow of information. 

In other words, these silos are teams with different tasks with systems that are also different and not integrated. 

3. Difficulty tracing transaction history 

Companies that do not use a good system in their business and tax transaction processes often have difficulty tracing or viewing the history of transactions that have taken place.

4. Risk of Non-Compliance

This risk of non-compliance is related to corporate taxes which corporate taxpayers should fulfill. For new business actors, the tax component is still not given much attention. 

However, this turns out to be quite crucial and should not be ignored. If business actors ignore taxation, bigger losses will come soon. 

5. Limited Working Capital

A classic problem that is often encountered by new business actors is limited capital. Many business people have an idea to turn it into a business, but have to stop because they don’t have enough capital. 

The difficulty in getting capital could be because there are many conditions that have not been met. 

These five common obstacles or problems actually have fairly easy solutions. 

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