The financial ramifications of taxation are at the forefront of any small business owners mind, with the issue seemingly never far from the headlines throughout the commercial world.

Indeed, tax policies are certain to have a huge impact on the decisions SMEs make in the future, as expansion on a global scale and rising regulatory control become increasingly obvious.

From the government’s perspective, tax will continue to grab its attention as they look to fill the coffers and get a grip on the levels of tax for which they’re liable.

As a small firm, there are several factors you should be aware of in the coming weeks and months that will have a marked effect on how you do business.

Here are the top five …

Corporate Tax Strategy to Revolutionise

If you’re a business with eyes on making your mark abroad, now is as good a time as any. Cross-border trade is increasing, which means, from a tax perspective, you must be operating as resourcefully as possible. However, this should be done with an eye on maintaining your company’s corporate strategy and keeping your risk profile controllable.

Regulatory Controls to Increase

Regulatory control across all business areas has tightened in the last decade, with tax just one of many. The Enron collapse in 2001 set the precedent, with stricter tax controls leading to businesses reinforcing their tax capability across the board to meet the increased regulatory requirements and ensure their risk is mitigated as much as possible.

Tax to Be Moved Internally

For SMEs with hopes to expand, it’s likely that tax matters that traditionally went to accountancy firms will eventually be handled by in-house teams in an effort to cut costs and ensure they have complete control over all areas of their tax. This would only leave the most complex of tax issues to be dealt with by external advisers.

International Prospects to Flourish

Considering the global opportunities opening up to businesses, accounting firms will need to adapt or be left behind as their clients become established on the international map. This will mean, as an SME, your accounting firm – only if you have moved your tax function in-house – should be armed with the expertise you need to offer specialist advice as and when you need it.

Specialist Tax Roles to Increase

SMEs the world over will be looking to cut and control their long-term effective tax rate, which is why slashing costs is becoming increasingly vital. How? By decreasing exposure to indirect taxes. This offers SMEs immediate savings and, when it comes to VAT and potential savings, tax specialists will be highly sought-after with accounting firms and in-house teams.

Photo credit: 401(K) 2013