Are you expecting a healthy tax return this year? Unless you are well organised and have all your essential documents ready at the time you meet with your tax accountant, your potential return will likely be minimised. For this reason alone, solid organisation and preparation in the lead up to your appointment is not only financially wise, it’s also a very important time and stress-saving measure. In this article we’ll not only share with you essential preparation tips, we’ll also provide you with a comprehensive checklist that your accountant will love.
Tax time is a crucial period for sole traders, small businesses and primary producers to get right. Australia’s Taxation and GST systems are intricate and demand a thorough understanding of all legislative, regulatory, reporting and compliance matters if a business is to prosper. Without a comprehensive and organised tax planning strategy in place, you run the significant risk of making mistakes that can result in non-compliance or missing tax reduction opportunities you are entitled to. Either way, both situations will hurt your company’s bottom line.
Whilst tax time preparation requires diligence and dedicated effort, the good news is it does not need to be difficult. With the right software and practices in place, you can establish a tax accounting strategy that sets your business up for success.
How important is accounting solutions software to tax time planning?
Vitally important. We would strongly advise adopting cloud-based accounting software if you haven’t already migrated your business over. Whilst there is a range of products in the market, we recommend MYOB Business accounting software or Xero. It allows for real-time data recording and business access from home, work or on the go, 24 hours a day 7 days a week. You can also enable your accountant to have access which means you can oversee your business performance and prepare your tax obligations together.
SG Advisory is an MYOB Diamond Partner and Xero Gold Partner which recognises our firm as one of the accounting solutions leaders in our industry. Our staff can answer any questions you may have so get in touch regardless of whether this is an entirely new process for you or if you’re thinking of shifting your business across from another software system.
What practices help with tax time planning?
If there are two golden rules we highly recommend you adopt, it’s:
- Keep on top of your paperwork
- Establish and maintain rigorous record-keeping practices
Keeping on top of your paperwork
The right accounting solutions software will provide you with the process, but the practice of regularly maintaining and overseeing correct data entry will be on you. Setting regular daily, weekly, monthly and quarterly tasks will ensure the effort in developing a comprehensive accounting record is spread throughout the course of a year rather than a mad scramble come to the end of the financial year.
| Tax tip – With SG Advisory, our tax accountants can assist in overseeing your data entry, accounting record and document storage practices. This will help you qualify for the right deductions and allow you to spend more time running and growing your business. |
Establishing and maintaining rigorous record-keeping practices
Keep receipts for all business-related expenses and tax deductions you are claiming for because a common pitfall small businesses experience is the inability to provide supporting records and evidence when asked to verify specific transactions.
| Tax tip – Australian Taxation law requires business records be kept for five years so regardless of whether you use a paper-based or electronic storage system, it’s crucial that it’s structured for easy retrieval. |
How else can I make sure I have all my records in hand?
Even the best and most established systems need a process of review to make sure they are operating optimally. And when it comes to review processes, they don’t come much better than a comprehensive checklist. By employing and modifying a checklist over time, you can have confidence that the information you are collating and preparing for your appointment with your tax accountant is tailored to the tax compliance requirements of your business. To help you get started, we’ve collated the following income and expenses checklist below…..along with a few extra suggestions.
Download a copy of your Preparing For Your Tax Appointment Checklist Here
Finally, as a general suggestion, always remember to ask your accountant at your appointment about any additional tax incentives there are that might help improve your tax return.
So if you’re ready to complete your tax assessment, contact us today We have offices in Echuca and Rochester in Northern Victoria and we also service Shepparton and Swan Hill. So why not schedule your appointment with one of our accountants.
However, should you wish to speak with one of our experienced consultants to ensure your tax preparation is done right, book your free 30 minute business consultation appointment with SG Advisory today.
Disclaimer: The information contained above is general in nature and should not be considered as personalised taxation or accounting advice. Please consult one of our experienced tax accountants as taxation law, regulations and the way they affect your business will differ from year to year.