It may seem like only yesterday that we submitted our last tax return, waiting impatiently for the tax refund we hope we deserve (and praying we don’t receive a tax bill instead!). However, with a few simple preparations, you can take the guesswork and stress out of tax time. We’ve put together a simple guide that can get you well on your way to being fully prepared for tax time this year.
Easier said than done, efficient organisation is key to a smooth sailing tax time. Whether you and your business operate online or on paper, make sure that all your affairs are properly organised. Where are all the important details located? If you can’t find information about clients, income, expenses, investments and properties, it’s time to start looking. Whether it’s on the computer or in a filing system, implement a logical system where you can find all the important financial details quickly and easily.
Know your finances
Become familiar with your personal and professional financial situation. This enables you to adequately understand your situation come tax time. As well as this, it means you will be able to have more fruitful and productive conversations with our accountant when the time comes. Become familiar with how much money you made in the past year, the bills you’ve paid, the debts you have, all the whilst taking into consideration any financial goals you wish to conquer in the future.
Communicate with your accountant
Don’t leave it until June 30 to contact your accountant. As this is the busiest time of year for accountants, they will be completely inundated at this time, so may not have the resources to cater to all of your problems last minute. For this reason, ensure that you communicate with them early in the year, so they are well prepared for your circumstances. This prior contact also means that they will be able to advise you of your financial actions leading up to tax time that should make your professional life a whole lot smoother.
Find out what’s new this year
There may be some law changes that have been enacted in the past year that apply to you or your business. Make sure that you ask your accountant of any recent financial legislation that may affect you, and make a plan of attack as to how you are going to deal with it. Remember, it’s best to be proactive rather than reactive!
Of course, a smooth sailing tax time is never a sure thing. However, there are some precautions that you can take to ensure (as best you can) that there are no monumental hiccups. Stay organised and in the know about your current finances, and don’t forget to keep up the communication with your accountant. As well as this, staying abreast of any recent law changes that may affect you will all aid in your tax return being submitted accurately and on time. Don’t wait - if you have any tax or accounting queries, contact Next Level Accountants today.