A Study for How to Improve Tax Accounting Practices in Small and Medium Enterprises (SME)

• Main Authors: An-nan Chan, 陳安男
• Other Authors: Jyh-chau Yang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/26109152679422056825

碩士 === 朝陽科技大學 === 企業管理系碩士班 === 99 === According to the census issued in December 2009, by the Small and Medium Enterprise Administration, Ministry of Economy Affairs, the small to mid-size companies currently account for 97.91 percent of the total number of business entities in Taiwan. These companies have small business structures and less capital investments. They usually lack a sound accounting system. Business administrators are deliberately on the lookout for the marketing strategy and also the research and development of a new product. Accounting and Finance are two areas that are often overlooked. Particularly out of ignorance of Tax Accounting in income tax and sales tax causes most business owners to pay more taxes than they are obligated without knowing it. Furthermore, in the event of failing to comply with tax laws, companies are imposed with large fines and penalties that create significant business loss. In view of risk management in taxation being an important issue of business administration, the purpose of this paper will be examining problems on tax accounting practices from the small and medium enterprise’s perspective and to provide a practical guidance to their business managers. The analysis is focused in seven categories based on the difference of their natures: (1) Business Revenue (2) Cost of Goods Sold (3) Operating Expenses (4) Non-Operating Revenue and Losses (5) Balance Sheet Accounts (6) Income Tax Withholdings (7) Administrative Relief. It is my hope that this paper will awake the business administrators and accounting staff of the small and medium enterprises to face the challenge of tax accounting; to understand tax regulations; to strengthen their ability in tax accounting practices and, eventually to minimize the risk of tax management and promote the efficiency of business operation