GET ORGANISED…. Here’s how
1. Commit to clean bookkeeping (sounds boring, but it’s the foundation to your numbers)
Year-round, effective bookkeeping is the best way you can minimize tax season stress.
With the wide range of simple accounting software out there, there’s no reason to rely on time consuming manual methods that leave room for error.
All-in-one options like Xero (ask us about our Xero training) automate your most important bookkeeping processes, including:
- Tracking expenses;
- Tracking sales and income;
- Creating and sending invoices and
With your financial records all in one place and up-to-date, you’re better positioned to maximize your refund, while avoiding penalties associated with incorrect or incomplete tax returns.
2. Capture every business expense
Each year, 21% of small business owners claim less than half of their business expenses, largely because they don’t have a reliable system for documenting expenditures while on the go.
Without carefully logged receipts, entrepreneurs must forfeit valuable tax deductions, sacrificing cash they could be funneling back into their business.
Cash in on claimable expenses by using a mobile app to record receipt data, track mileage and generate expense reports. As an added bonus, many of these tools sync with your all-in-one accounting software.
3. As Notorious B.I.G Says….Separate business from personal…
Right from day one, you should clearly divide your personal and business expenses.
Differentiating between the two will make it much easier to claim deductions on your tax return – and support those claims in case of an audit.
The absolute key to separating business from personal is to
- Create a separate bank account for your business, and designate a card solely for business purposes
4. Have a chat to your chartered accountant… they know a thing or two about saving tax.
Not sure exactly what you can claim as a business expense? Wondering which accounting software to use or how to interpret local tax regulations?
Consult with an accounting professional to put your mind at ease.
In addition to managing the nuts and bolts of tax preparation, regular meetings with an accountant will help you continuously improve bookkeeping practices and better understand the financial workings of your small business.
Need some more help with your small business tax or accounting? We offer a FREE 15 minute strategy phone call. Book one in today!
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