Are you ready for tax time? It doesn’t need to be stressful.

business tools organisation planning running a business from home Jun 25, 2015

Most people find tax time very stressful, some find it so stressful that they will choose not to lodge a tax return because they just can’t face it! But tax time does not need to be stressful, it can be rather straight forward and painless if you have systems and processes in place, especially if you start them right from when you start business and small enough to have them grow with you.

To Do List:-

  • Ensure your bookkeeping is up to date and you have entered all your receipts and payments. Chase up any records you are missing.
  • Ensure any outstanding invoices are paid to ensure you can claim the business expense in this financial year and wont have to wait a year to claim it.
  • Book an appointment with your accountant as soon as possible straight after June 30.
  • If you have PAYG statements coming employers should have these too you no later then the 14th of July. The quicker you get it out the way the quicker you can be stress free and move onto the next financial year.
  • If you have employees ensure you book time with your bookkeeper / accountant to ensure PAYG statements are sent out prior to July 14.

Start the new financial year with good foundations

  • Book an appointment with your Accountant to discuss your financial plan for the new financial year, and what you can do differently this year to maximums your tax benefits and reduce the amount of tax you have to pay.
  • Is it time to go pro with your accounting system?
    • If so book a time with an accountant to ensure it is set up correctly as per their requirements, if not set up correctly from the start it can be very time consuming to clean up the file at a later date and the reporting may not be correct.
    • Set up systems
      • Will you hire a bookkeeper? If you hate doing bookkeeping – invest in a bookkeeper for this financial year (if in Australia ensure they are a Registered BAS Agent).
      • Ensuring your invoices and payments are entered at least weekly (daily if you can manage it). A little each week saves you from hours and hours at the end of the year, and gives you more accurate reporting.
      • Do you need a daily takings sheet or a POS (point of sale) system that integrates directly with your accounting software?
      • Set up bank feeds (this is where your accounting software automatically imports your bank statements daily) – This can cut down a considerable amount of time when it comes to bank reconciliation and data entry.
      • Set up a filing system – paper-based or electronic – Don’t forget you need to keep tax and business records for 7 years.
      • Follow up client overdue invoices as soon as they become overdue, don’t leave these to become old and a struggle to recover.
  • If you have employees have you registered for the ATO’s new SuperStream yet?
  • If you are doing your BAS yourself, have you registered for ATO Business Portal, where you can lodge your BAS obligations online?

Important Dates:-

  • 14th of July – PAYG Payment Summaries have to be issued to employees by the 14th.
  • 4th Quarter BAS Due – 228th of July if by paper or 11th of August if online
  • 28th of July – Payment of Super Guarantee Contributions for Quarter 4 due.
  • 14th of August – PAYG withholding payment summary annual report due.
  • Tax Return to be lodged prior to 31st of October for Individual, Partnership and Trusts.

What are your tax time tips?