Here at Palfreyman Chartered Accountants, we understand that getting ready for tax time can be stressful. To help make this easier, here are some tips that will keep you on top of your organisation:
1. Find out what information you need: ask us at the start of each financial year what information you’ll need to collect and store. Remember to find out if your circumstances require you to keep a motor vehicle log book, have proof of your phone, internet and home office use, and document receipts for deductions.
2. Plan your record-keeping: it is important to be consistent in your organisation throughout the year. When thinking of your storage method for your business, we recommend considering using apps such as Dext for recording receipts without a paper trail. If you have more complex accounts, software such as MYOB, Quickbooks or Xero can help you stay up to date. If you like paper records, a good option is to use binder folders or expanding files that are tabbed, labelled and organised chronologically. This allows you to quickly access information when required.
If you are a salary or wage earner, you may find the ATO’s free app, MyDeductions, very useful.
3. Know your deadlines: it is worthwhile recording your tax deadlines in your calendar. By recording them somewhere you will regularly see them, you are more likely to remember to meet those deadlines. Some dates to consider include the final date to start records of logbooks, phone, internet and home office use, as well as SGC payments, BAS and Tax Return deadlines. We can assist you with these dates.
4. Contact your accountant: we are your best resource when it comes to tax planning. We recommend that you contact us by the third quarter of each financial year to discuss ways you can minimise your tax costs through purchases, distributions and other strategies.
5. Stay up to date on changes: being on top of legislation and policy changes are a great way to ensure you are compliant and getting the most out of your business. Your first port of call should be our website blog, newsletter and social media pages. You can also consult information provided by your local Chamber of Commerce or Business Support organisations. Free tax updates are also available through government organisations such as the ATO, ASIC or your local business magazines. We are here for you and encourage you to contact us with any queries regarding such changes.
6. Scheduling: a great final step towards a stress-free tax time is to agree on a suitable time for us to complete your year-end work. Please get in touch with us today to book a time in advance.
We hope these tips help you prepare for the 2021 Financial Year. If you have any questions, or require any assistance with your business requirements, please do not hesitate to contact our office on (02) 4990 3775 or enquiries@palfreyman.com.au.
