Filing tax returns
Preparing tax returns is a crucial step to ensure compliance with fiscal requirements and maintain financial transparency within businesses. This process involves compiling and presenting detailed financial documents that are essential for accurately reflecting the company's economic position. Despite the complexity of this task, a properly prepared tax return not only provides a clear overview of the company's performance but also makes it easier to meet tax obligations.
What is a tax return?
A tax return is a set of accounting and financial documents that businesses must submit to tax authorities to report their annual financial results. It typically includes:
- Balance sheet: A statement that presents the company's financial position at a given date.
- Income statement: A document that shows the company's performance over a specific period, detailing revenues and expenses.
- Explanatory notes: Supplementary documents that provide additional details on the items in the balance sheet and income statement.
What are a company's obligations regarding tax returns?
Tax returns are mandatory accounting documents for all businesses subject to the standard tax regime, whether structured as a corporation or a sole proprietorship. They apply regardless of the type of taxation, whether it's corporate tax (IS) or personal income tax (IR), as well as the tax category, such as industrial and commercial profits (BIC) or non-commercial profits (BNC).
Why outsource the preparation of tax returns?
Outsourcing the preparation of tax returns is a smart strategy for many businesses.
Heavy administrative burden
Preparing tax returns involves numerous complex administrative tasks, from document collection to filing declarations. By entrusting this responsibility to an accounting firm, businesses can reduce their administrative workload and focus on their core operations.
Time savings
Delegating this function allows companies to save valuable time. Accounting firms use optimized processes and tools, enabling them to prepare tax returns more quickly and efficiently than in-house staff, who may have less experience in this area.
Reduced risk of errors
Errors in tax returns can lead to significant financial penalties. By relying on a specialized firm, businesses minimize the risk of mistakes through thorough checks and a deep understanding of current tax regulations.
Firm expertise
Accounting firms like We Doo Accounting have specialized technical skills and an in-depth knowledge of tax laws. This allows them to provide sound advice and ensure that tax returns are accurately completed and fully compliant with the latest regulations.
Tax optimization
An accounting firm can also identify tax optimization opportunities that companies might overlook. By conducting a detailed analysis of the company’s finances, they can recommend strategies to reduce the overall tax burden.
Regulatory compliance
Staying compliant with tax regulations is essential to avoid penalties. By outsourcing tax return preparation, businesses ensure that all obligations are met, as experts are always up to date on legislative and regulatory changes.
Cost reduction
Outsourcing this function can be more cost-effective than hiring and training a dedicated employee. Expenses related to salaries, training, and employee benefits are often higher than outsourcing fees, allowing companies to save money.
Flexibility
Finally, outsourcing offers great flexibility. Businesses can adjust the level of services based on their needs, especially during busy periods like year-end closing. This adaptability helps manage internal resources better and optimize workloads during peak times.
Steps followed when preparing a tax return
Gather accounting documents
- Balance Sheet (Assets/Liabilities)
- Income Statement (Revenue/Expenses)
- Accounting Annexes (details of depreciation, provisions, etc.)
Calculate taxable income
- Start with the accounting result
- Apply tax add-backs (non-deductible expenses)
- Apply tax deductions (deductible expenses)
- Verify depreciation and provisions
Fill out tax forms
- Forms 2050 to 2059-G (balance sheet, income statement, tax adjustments)
Calculate corporate tax
- Calculate tax based on taxable income and applicable rates
Prepare additional documents
- Management report (if necessary)
- Consolidated financial statements (for groups)
Submit the tax return
- File through the tax portal (Impots.gouv.fr) within the required deadlines
Archive and audit preparation
- Retain documents and prepare documentation for potential tax audits
Why choose We Doo Accounting to prepare your tax returns?
Specialized expertise
We Doo Accounting possesses deep expertise in tax matters, particularly regarding tax returns. Our accountants undergo continuous training on legislative changes, ensuring full compliance with current regulations.
Efficiency and speed
With optimized processes and expert use of tools, we ensure the fast and accurate preparation of tax returns. This allows you to meet legal deadlines while avoiding the stress often associated with peak periods.
Trust and transparency
We provide clear and detailed reports that build stakeholder confidence. Our transparent approach allows you to track every step of the process and have a comprehensive view of your tax situation.
Your Guarantees with We Doo Accounting
Close collaboration
We build a close relationship with our clients to better understand their needs regarding tax return preparation. Our team is available to advise you on the implications of income tax and corporate tax.
Responsiveness to various requirements
In the tax field, responsiveness is key. We are ready to act quickly to address any questions related to your tax return or the submission of documents to the authorities.
Precision in our processes
We ensure absolute precision in preparing your tax return. Every table and detail is thoroughly checked to guarantee accuracy and compliance, minimizing the risk of penalties.
Trust-Based Relationship
As accounting experts, we have built a solid reputation for supporting businesses with their tax filings. You can rely on us to ensure the confidentiality and security of your data throughout the process.
Agility and Flexibility
We are agile in our approach, adapting to legislative and regulatory changes. Whether for companies under the standard or simplified tax regime, or corporate tax, our team is ready to adjust its methods to meet your specific needs.
FAQ about tax filing
Why is it important to properly prepare a tax return?
A properly prepared tax return not only ensures compliance with legal obligations but also provides a clear view of the company's performance and highlights potential tax opportunities.
What are the key steps to prepare annual accounts before filing a tax return?
Preparing annual accounts involves collecting and organizing financial data, drafting the income statement, and ensuring compliance before finalizing the tax return.
How does proper accounting management contribute to a high-quality tax return?
A well-managed accounting process ensures all transactions are accurately recorded, which is essential for producing a precise and complete tax return.
What are common mistakes to avoid when preparing a tax return?
Common mistakes include misclassifying expenses, omitting important financial information, and incorrectly closing the financial year.
What documents are needed to prepare a complete tax return?
To prepare a complete tax return, it's crucial to gather annual accounts, the balance sheet, previous tax filings, and any documents justifying industrial and commercial profits.
How does the tax authority use the tax return?
The tax authority uses the tax return to verify the accuracy of a company’s filings and to assess the income tax and corporate tax owed.
What are the deadlines for submitting a tax return?
The deadlines for submitting a tax return depend on the type of company and its tax regime, but generally, it must be filed within three months after the fiscal year-end.
How do I choose an accountant to prepare my tax return?
When choosing an accountant, check their qualifications, experience with tax returns, and their approach to helping you optimize your tax situation while complying with tax regulations.
What are the consequences of a poorly prepared tax return?
A poorly prepared tax return can result in financial penalties, tax audits, and compliance issues with tax authorities, potentially harming the company’s reputation.
Are there any grants or funding available to help with tax return preparation?
Yes, certain grants or subsidies may be available for businesses, particularly for self-employed individuals, to help them meet their tax obligations and prepare their tax return.
Contact us
Ensure the compliance and accuracy of your tax returns with our expertise! Interested in learning more about our tax preparation services or getting a personalized consultation? Contact us today to find out how we can help you manage your tax obligations efficiently.