If getting your business ready for tax time leaves you sorting through a mountain of paperwork, it may be time to make some changes. Simplifying your tax reporting processes can help you manage your end of financial year (EOFY) requirements and save you time. Here are some ideas to help make EOFY preparation a little easier.
Start storing your documents online to save time going through paperwork next year. Some ways of doing this include:
- Scanning your cash receipts with your phone
- Filing your paperwork in folders using logical categories – you can use date or document type
- Backing up your electronic records to a cloud service – this will also allow you to share access with any business partners or your accountant
Automate your bookkeeping
Find out if you can synchronise your bank accounts with your accounting software. This can make your tax reporting easier all year round as you may no longer need to manually reconcile your bank account data.
Open a separate business account
Having one account for everything can be confusing and time consuming when doing your taxes. Kick off the new financial year with simpler bookkeeping by separating your business and personal finances. If you already do so, consider opening multiple business transaction accounts for the same reason. You may find it easier to report for your next business activity statement (BAS) and spot any tax deductions you may have missed earlier.
Set reminders for key deadlines
If you haven’t already, put reminders for key tax due dates in your phone and email calendars.
Look for professional help
If you have any questions about your tax reporting, you can find more information on the Australian Taxation Office (ATO) website, or speak to an accountant.
Keep good records
You should also ensure that you retain your records for the amount of time required by tax law, for example, you are required to retain records of the acquisition of a capital gains tax assets which you may not sell for many years later.
Useful information on what records are required by law is available at the ATO website.