Accounting and Tax Service: the Effect of Taxation on Small Businesses

accounting and tax services for small enterprise

The Importance of accounting and tax services on Small Enterprises demonstrates the beginning uphill battle due to allegedly discriminatory tax regimes worldwide. These provide a competitive advantage to established businesses.

Entrepreneurs pay up to 10% more tax as a percentage of profits than large enterprises, and the younger a company is, the more tax it pays. This suffocates the start-up culture, which is so essential around the world.

While many countries provide some tax relief for small enterprises, many face the same tax system as large corporations.

A Taxing Problem analyses a survey of over 3,000 enterprises from 11 nations to determine the scope of the tax problem, how it affects businesses, and where there may be solutions.

Small and medium-sized enterprises (SMEs) affects not only account for a significant (in many cases, the majority) share of economic activity and employ a large proportion of the working population, but they also drive innovative and vibrant sectors in virtually every part of these economies, as well as in every region and territory.

As a result, this is a major problem for all of us – one that deserves the study and consideration provided by this paper.

  1. A Taxing Problem provides priceless data-driven insight
  2. Provision of global significance of SMEs and the economic benefits
  3. Corporate tax regimes around the world and their implications for SMEs
  4. The advantages and drawbacks of completing tax-related accounting
  5. Whether intervention can help to improve the situation and outcomes. A Taxing Problem is an excerpt from the taxation book.

Here’s an excerpt from the study that will provide further insight into what you can learn from A Taxing Problem.


  1. Plum Consulting performed this study for Sage to assess the issue regarding taxation on small and medium-sized businesses (SMEs). SMEs contribute significantly to the national and global economies.
  2. The 11 countries’ contribution in this paper to overall GDP ranges from roughly 40% to 60%. SMEs also account for 45% to 70% of overall employment in these countries. 5% to 70% of the total work in these countries.
  3. Therefore, governments should create an environment that makes it attractive for entrepreneurs to set up small companies and is conducive to SMEs’ success in the long run.

One way of creating a fostering environment for SMEs is through a professional tax accounting service provider.

A corporate tax regime that leads to new or small companies being taxed at an effective marginal rate higher than the market’s average could deter potential entrepreneurs from starting a business.

FinBridge, as an outsourcing firm, assists such small businesses in skillfully managing their taxation such that it contributes to their business success. As an outsourced accounting service provider, we facilitate financial assistance to companies so that their staff can focus on core functions.