Taxes are a regular part of life and one that everyone pays into. Businesses especially are responsible for paying their taxes which are used to support the community and offer all types for services such as roads, hospitals, and schools. Today we are talking to Asif Ali Gohar and how his vegan leather business manages their tax preparations.
Are business taxes as different from personal taxes as people make it sound?
Absolutely yes. While personal taxes include your own income and some property, business taxes are income and expenses and land and loans. It is much harder to track all of the income and deductions, it’s also very different from small business to large business or corporations. It is a very different process and a lot more work.
What is the most important thing you can suggest for managing business taxes well?
For me, getting an accountant is the best advice that I can offer. This is not just for taxes either, if you can have an accountant on staff to track these important details each month than you will not have as much work to do at tax time, everything will be properly accounted for, and you will have a better idea of how your business is doing around the year.
Alternatively, keep track of everything, all money that comes in and all money that is spent, as well as detailed inventory. These will all be important at tax time and can be hard to search out later. Preparing in advance is the best way to have a successful tax time.
Are yours different from others because of the nature of your business or is rice leather taxed the same as other goods?
I think that each industry is a bit different, but because I use a food source that is widely and openly traded and then turn it into a wearable item, it is working within two different industries and sets of industry standards. This certainly makes the taxes more difficult than others who are more straight forward and direct. However, having someone in the business who knows exactly what to do with them makes a very big difference.
Do you feel that businesses are overtaxed or that they carry their fair share?
I know there are many different opinions and factors to consider when discussing taxes. The truth is that they are needed to a point in order to support a healthy society that takes care of everyone. Taking care of each other and doing better as a group are the exact reasons that communities and villages began, and it is key that we keep that focus. If we over tax businesses they will pay employees less and they will have less to invest and spend back into the community, but this is a larger source of income than individuals and they have a larger profit so they should pay higher taxes than individuals. I think it is finding that balance that allows both businesses and their employees to thrive is the ultimate goal and the only way that we can have a truly healthy and happy society.