onsdag 27 april 2011

the government's promise: less administration for minor companies...or?

The year was 2010, election year in Sweden. Within the promises of actual government parties one could read about the parties promise for less administration for small businesses, all for the purpose of lower unemployment figures in Sweden. Because: the one who cannot find a job, can always start up an own company if not scared off by the high administration level due to declarations, taxes, accounts.

Please let me remind any reader in Sweden that we could see the same promise four years earlier in 2006 and in 2010 we still could not see any changes. But a promise that has not been fullfilled after elections four years earlier, can always be re-used!

The thing that I wonder about is if our government already has forgotten about their promise to minor companies less than six months later? Halv a year has gone since elections and within one week one could read about two government suggestions regarding small businesses:

1. a special declaration in which businesses have to report all employees on a monthly base, including all information such as namn, adress, socialsecurity number, etc. Until now all employers in Sweden have to report this information once a year.

2. today you can read about a suggestion regarding companies that declare vat once a year (meaning companies with earnings less than 1MSEK) in their ordinary tax -form. Suggestion is that those companies shall report vat in a separate declaration about 3 months earlier.... this means that small companies will have higher costs for their accounting as most of them choose to outsource their accounting because of complicated tax laws. Of course: two reposrt/ declarations will cost twice as much.

Both of the suggestions above would be gratefully embraced by me, as I run an accounting firm, but would implicate such a higher cost for the small companies. I would rather see that company leaders of minor businesses would put their money into financial and structural consultancy to improve their business than into more reports to the Tax-authorities. Thing is: better functioning businesses will create more jobs, more jobs will bring down unempolyment rates and with this improve national economics. More reports will not make that difference! Instead of putting even higher administrative costs for more reports on small enterprises, give them a special premium that gives them the opportunity to engage into more particular concultancy with accountants and auditors to improve business and results! Let small businesses be able to run their companies without growing administrative impacts on their lifes and give them opportunity to chose to put their hard earned money into consultancy instead of reports!

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