How to be ready and prepare for tax time
Tax time is stressful for many individuals and businesses because it means collecting all receipts and documents, analyzing them, and then filing taxes based on these documents. To reduce this stress and effort, it is important for users to prepare for tax time well ahead.
Below are some suggestions that will have you better prepared for tax time in the future:
- Firstly, collecting all documents – as soon as you receive any document, such as, receipts, assets purchase/sale agreements, any work related expenses and bank statements read through them to check if everything is correct. If there is a discrepancy, make sure it’s sorted out by tax return time;
- If you have given any contributions to any charitable organization throughout the year, make sure you keep all notice of each payment;
- Work or business-related purchases are eligible for deductions, provided you have a receipt of some kind to support your claim. Therefore, it is important to collect all receipts of purchases, so you can present them at tax return time;
- Claiming on all expenses on your rental property, such as, getting Solar installed, installing or purchasing new appliances, getting new carpet or curtains, pretty much anything you spend money on to improve your rental property;
- Always keep your receipt from last year’s tax return. If you happen to go to a new accountant one year where you wouldn’t be on file, you could miss out on claiming your fee from the year before. It’s always a good idea to keep a folder of some sort, with all of your receipts and list of transactions in, starting with your tax return accounting fee receipt.
The above suggestions will go a long way in helping you get better prepared for tax time without having to go through high levels of stress. So take note, it’s better to be safe than sorry!
Our team at IQ Accountants will have you so prepared for tax time, that by the end of the financial year, all the required documents will be ready to go, and you’ll meet the Australian Taxation Office deadline with ease.