Business strategy helps in reaching certain business objectives by assisting the entrepreneurs. To reach a certain position in the market, the management should carry on the company by pleasing the customers and thus get the desired result. Gaining organizational goals through competitive efforts, thus attracting customers is what business strategy does. The present development of the company is due to the initial business strategies and approaches taken by the company.
It is the planning done to take the company to a desired position in the future. It also determines the destination of an organization. To reach this goal the company has to cross certain hurdles, these include attracting the customers through varied moves and actions, thus competing successfully, gaining strength, to reach the aim.
If your company needs to be successful in its business planning, then it should have a tax planning strategy. Tax planning is meant to ensure tax efficiency. It is an essential part of a financial plan. To minimize the amount of taxes paid in a period, various strategies should be implemented in tax planning. Minimizing these liabilities means, it can be used for other purposes like money for expenses, investment or growth. Making unnecessary purchases is not recommended for small businesses. Deferring taxes by small businesses allows them to use the income interest-free; even they can earn interest on it.
General areas of tax planning include:-
Accounting methodsKeeping the financial records of business according to the rules and regulations is what accounting methods are for. The two main record-keeping methods are:-
- Accrual basis
- Cash basis