Beyond the reasons to meet a need and to be one’s own boss, the entrepreneur who decides to launch his/her business also wants to make money: profit. Life consists of a minimum of basic expenses. We have bills to pay, and this takes money! Such is life…
As long as a business does not make a profit, it is at a financial and cash flow risk. All entrepreneurs hope and work hard to generate revenues that will exceed their business expenses in order to ensure financial security and to be able to reinvest and grow their business.
With these profits comes a social (but mainly tax) obligation to contribute by paying taxes. The least enjoyable part, you say? Look at it another way: if your business doesn’t make enough profit, this could mean bad management; too many unnecessary expenses, not enough generated revenues, which could probably result in a risk of closing the business.
The higher the profit of your business, the more you will progressively pay in taxes. However, the good news at this stage is that your business is profitable!! Because the opposite is also true… a business which does not generate profit will not pay taxes! So, celebrate loudly and clearly when your business starts to pay!
This does not mean that we must pay taxes blindly. Depending on the type of business, there are benefits that help to maximize the tax structure and you must absolutely take advantage of these. VirtuaCompta can help and guide you through these steps, so don’t hesitate to reach out to us for a consultation.