Top 5 Tax Mistakes Small Businesses Make — and How to Avoid Them

Introduction

Navigating taxes in Nepal can be tricky—especially for small businesses. From VAT to TDS, compliance requires expertise and discipline. At Earther Consults, we’ve seen the most common tax pitfalls—and helped dozens of businesses avoid them.

1. Missing Filing Deadlines

Many SMEs forget deadlines for VAT, TDS, and annual returns. This leads to penalties and credibility issues. We use automated reminders and manage filings on your behalf—stress-free.

2. Improper Record-Keeping

Without organized records, claiming deductions or proving transactions becomes impossible. Our bookkeeping service ensures your tax files are always accurate and accessible.

3. Not Planning for Tax Payments

Many business owners wait till the last moment to arrange funds for tax. We offer quarterly reviews to help forecast and prepare in advance—so your cash flow doesn’t suffer.

4. Overlooking Deductions and Allowances

You might be eligible for deductions on depreciation, expenses, or employee costs—but not claiming them means overpaying. We identify all legal deductions to minimize your tax burden.

5. DIY Tax Filing Without Expert Help

Tax laws and formats (IRD, VAT, Excise) change frequently. DIY filings often miss key updates, risking compliance issues. Our certified tax professionals handle your filings with precision and accuracy.

Conclusion:
Avoiding these tax traps is easier than you think—with the right team. Trust Earther Consults for timely, efficient, and penalty-free tax compliance that keeps your business safe and thriving.