Introduction
Every one pays and is supposed to pay tax. Many countries almost everyone pay tax and this has been the trend from many years. finances gotten from tax are used by the country to take care of its citizens ,that means finance and tax are one same thing which is helpful o a country. An individual can also decide to finance their own projects e.g. businesses.
History
You can get finances for your projects by using investors. The method is suitable for persons starting business or either you have a business and you are out of funds. What you need to consider is where you will get an investor to invest in your business.
For tax and tax paid by the individuals it will depend whether, it is direct or indirect tax. Direct tax will be charged for your personal properties. These properties may be buildings, businesses, inherited property etc.
It is good for one to have best management of your book keeping. This method will help you in managing all your finances. Some people may ignore about book keeping and end up loosing their finances. Lack of proper management of book keeping may harm the business.
Indirect tax is another method which government and tax department use to collect levy fro the citizens. This levy are incurred on things like services, vat etc. for this it’s very hard to know because you pay the tax without knowing. Also this indirect tax is taxed on the individual income; one is taxed as they earn their cash.
Financial position statement is a financial statement that includes balance sheets and company reports. This gives total information on how an organization is doing the company asset and the organization liabilities. It enhances one to monitor the finances of an organization.
Income tax is a type of taxing. These taxes are levied on the income which an individual makes. This income is monthly income. These taxes are proportional thus they favor every body in the country that is taxed.
It is advisable to always make financial statements. This will give the information about the finances and will enable you to be in a position of comparing your expenditure and the income. The financial statements are also required by the owners of an organization in order to make critical decisions about the company.
Be in a position to make profit and loss analysis. For finance generation company or an organization to determine how they are fairing it is advisable to do this analysis. It is the one which will determine the loss or profit of an organization.
Also
Tax for Sales is another way government and tax institutions tax its citizens. This tax is when you buy some commodities in any firm. This is more like indirect tax on peoples. This tax is also levied on services offered in different fields like transport field.
Conclusion
Without maintenance of finances of an organization or a country many things can’t go well. So it is advisable to maintain and do all the analysis about financial situations. Tax is mandatory to everyone.
