5 Tips To Prepare For Tax Time
The end of the tax year will soon be upon us, with 30th June just around the corner. For many business owners, it’s a stressful time, as you frantically rifle through your files trying to find that missing invoice or receipt! There’s one sure way to avoid that last-minute rush: making sure you’re prepared for tax time.
In this blog post, we’re sharing with you our top tips to ensure you’re as prepared as you can be before it’s time to lodge your tax.
PLAN AN IN-DEPTH CASH FLOW SYSTEM
Having an in-depth cash flow system is vital to a businesses success! Plan out an in-depth cash flow system that includes an emergency fund. This way, if you’re hit with an unexpected tax bill, you have the means to pay it without breaking the bank.
NOTE IMPORTANT DATES
If you’re late to making tax payments, you could receive a fine from the ATO. To avoid this, we recommend setting up calendar reminders so you can track important payment dates. The deadline to lodge tax returns is the 31st of October for self-lodging individuals and up to the 15th of May for those who choose to use an accountant to submit their return. If you don’t currently have a tax agent, you need to register with one by 31st October to qualify for the extended deadline.
GATHER ALL YOUR DOCUMENTS IN ONE PLACE
The more organised you are, the less stressed you’ll be come tax time and the more likely you are to maximise your deductions. Without accurate records & receipts, you won’t be able to make the most of your expenses. Remember, if you plan to claim it, you need to be able to prove it!
As a general rule, here’s a list of documents you should gather:
A copy of last year’s tax return
Records of sales and purchases of any shares, business or property
List of all income, including payment summaries, rental income, interest and dividends and any foreign income
List of all expenses, including work-related expenses, donations, self-education expenses and the cost of managing tax affairs
Private health insurance details
Spouse details (if applicable)
Children’s details including date of birth (if applicable)
LIST ALL WORK-RELATED EXPENSES
Every profession has a list of industry-specific tax deductions. Think about anything you have purchased that relates to your job or helps you do a better job. This can include car expenses, uniforms, mobile phone bills, equipment and more! For a detailed list of tax deductions for personal trainers, see here.
DECIDE HOW YOU’LL LODGE YOUR TAX RETURN
Once you’ve gathered all of your files, you’ll need to consider how you will lodge your return. While you may think taking your return into your own hands will save you money, it could be costing you unclaimed tax deductions. What may seem like irrelevant information to you may have a tangible impact on your tax return, so it always pays to get expert advice. For help with your tax return, you can book a free consultation with us.