Believe it or not, but the end of financial year is already fast approaching! It’s a busy time for small businesses and individuals alike, so it’s a good idea to get organised well in advance so that you don’t end up scrambling to meet your deadlines.
Tax time can sneak up on you quicker than you think, and trust us, frantically compiling your receipts and financial records at the final hour is not a fun experience. So, if you’re committed to making this EOFY the easiest one ever, here are some of our top 5 tips:
1. Get your paperwork in order
In order to complete your tax return, you’ll need to gather, organise, and reconcile your financial records.The exact documentation you’ll need to hand over to your accountant will vary depending on your circumstances, but some of the most common records you’ll need to provide are:
- Receipts for sales and purchases
- Documents about goods and services tax (GST)
- Business Activity Statements (BAS)
- Records related to tax returns, activity statements, etc.
If you’re planning on making any claims for tax deductions, you’ll need to be able to produce copies of all your receipts. We strongly recommend using an automated cloud storage option to manage your financial paperwork. There are plenty of apps out there on the market that can assist you in gathering, managing, and storing your receipts and invoices from your device. Having access to digital records makes all the difference come tax time as it saves you from having to spend hours of your time searching for, and compiling, hard copy receipts. It’ll make your life (and your accountant’s life) a thousand times easier, so it’s well worth the effort!
If you’re reading this in a panic because you know that your financial records are all over the place, it’s not too late to get it sorted out. You usually have until the end of October to do your taxes, so there’s plenty of time to get your financial records in order. Our team at Jim’s Bookkeeping is here to help, so don’t hesitate to reach out today.
2. Invest in accounting software
If you’re a small business owner or sole trader, tax time can feel overwhelming. Thankfully, in this day and age, there’s software to tackle almost every problem. Investing in accounting software can save you hours of admin time, which in turn allows you to spend more time on actually running your business.
There are plenty of different options out there on the market, but good accounting software should allow you to track and store your receipts virtually, automate your Business Activity Statements (BAS), automatically track your Goods and Services Tax (GST), and streamline your reporting obligations. If you’re not sure which software to go for, our specialists at Jim’s Bookkeeping will be able to make a recommendation for you based on your exact situation.
3. Get your super in
If you’re a business owner with employees, then you should get on top of your super obligations well before they’re due. If you want to claim a tax deduction on the super payments you make for your employees this EOFY, then you must ensure that you make your super payments prior to June 30. After this date, you’ll no longer be eligible for a deduction. It’s also important to keep in mind that contributions are only considered ‘paid’ when the super fund receives them, so be sure to get onto it as soon as possible.
If you’re an individual who receives super payments from an employer, tax time is a great time to see if you’re eligible to claim a deduction for personal super contributions.
4. Backup your data
Use EOFY as an opportunity to backup your essential files and data in a secure external location, whether that be on a hard drive or in cloud storage. Fires, floods, system crashes, and hackers can wipe out years of personal and business records in literal seconds, so it’s extremely important to be diligent about backing up your data regularly. Being able to access past records can also help to make other future admin tasks easier, so you’ll be doing your future self a big service by taking the time to back up your essential data.
If you don’t feel confident in your ability to do this, it may be a good idea to hire an external IT provider to get the job done for you.
5. Speak to a professional
Everyone’s financial situation is different, so making an appointment with a financial professional or tax specialist can give you a clearer picture of your tax obligations. Additionally, a professional might be able to point out ways to reduce your taxable income, which can save you hundreds (if not thousands) of dollars.
If you’re feeling overwhelmed and confused about your tax obligations, get in touch with us at Jim’s Bookkeeping today. Our expert bookkeepers can help you get on top of your tax requirements and guide you towards best practices that will save you time (and money) in the future. Contact us online today or by calling Jim’s Group on 131 546 to see how we can help.
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