The financial year-end is just right around the corner. Many business owners start to panic because they are already busy with their deliveries. How on earth could they have more time and energy for taxes? Well, our experience tells us that with a proper bookkeeping system, no one should ever be afraid of the tax season. However, below are some tips for anyone who is struggling with their taxes:
Tip 1: Get help from the tax professionals
When you are in doubt about whether your tax or royalties are deducted or not or don’t know how to deal with taxes, the first thing you should do is ask for advice from an accountant or a professional that have knowledge and experience in this area, rather than just asking your friends and colleagues. Because of the collecting tendency of the government, you should avoid calculating mistakenly how much you own them. So, leave the pressure to the professionals who know exactly what to do, such as the kind of deduction you can have. Contact us if you have any questions. We are always happy to help.
Tip 2: Find a suitable app
There still exist holes in the process of an online accounting and invoice management system that may slow you down. Processing receipts manually is still the option for many companies, adding time for organising and collecting these. Therefore, it can’t help but lose receipts. However, business and accounting issues can be fixed practically by an app. Take Receipt Bank for example. It assists in managing those receipts kept in the shoe box or container. You can easily take photos of receipts and attach the images to the corresponding files on your computer with the app on your phone. On the other hand, apps such as WorkflowMax iOS app help you by streamlining your entire accounting process. All the feature of the time billing software is incorporated, which lets you track your time as well as issue invoices and input data directly to Xero or other accounting programs.
Tip 3: Follow up on current debts
The end of the financial year is a good time for a small business to tie up its most common accounting loose end – unpaid invoice(s). Follow up with all those clients who haven’t paid up and get them to fulfil their liabilities. Adopting an online, cloud-based invoice management system is considered as an easy way to deal with this. Furthermore, instead of searching through your files trying to match what hasn’t been paid, all you need to do is run a report and the result will appear on a list instantly. At Black Arrow, we provide accounts receivable services for busy business owners. Talk to us to learn more about how we can help you.
Another option is WorkflowMax as its one comprehensive time-billing software package offering everything needed to manage projects. Besides, it integrates seamlessly with Xero and other accounting programs. Let us know if you would like to set up a system for your business.
Tip 4: Keep track of your records
Learning tricks from forerunners, business owners used to keep all their receipts, invoices, purchase orders and other accounting documents in a shoebox or a container. However, is this the best way to keep track and record documents? Discuss with your accountants to find out the most efficient system that is suitable for your business. It can be a snazzy application or piece of software that will save you time and effort by connecting easily to your time billing software or accounting system. We at Black Arrow Bookkeeping can help you find the best solutions for your document keeping.
Tip 5: Reduce phone complications
Because most people tend to use the same mobile phone for personal and business use, it’s difficult to calculate the deductions for itemising and reducing phone expenses. It’s important to have a workable system unless you want to carry around two phones. Taking three months of the year to estimate their bills to come up with a percentage of business vs personal use is what many accountants advise their clients. Then, calculate the rest of the year using this ratio. You should talk to your accountant to figure out a simple way to measure phone expenses. (Guess who can help? US!)
Tip 6: What about another business structure?
It’s important for small businesses to understand their company structure when growing, whether it’s a sole trader, a partnership, or a limited company. Another company structure may provide you with better breaks or flexibility if it meets the requirement of different tax needed each year as well as the number of added staff. It also reduces the risk of legal action once the suitable is in place. Ask for advice from an accountant when choosing your own company structure. We can totally help you with this!
Tip 7: Be honest with your accountant
In order to perform their best, accountants have to have everything they need when they need it. The more they delay, the riskier you delay filing, which can cost you a number of fines that you will be liable for. So, the documents that your accountant has asked for shouldn’t be neglected, as well as have your accountant send you a checklist of documents and items for you to complete by the deadline. Just ask your accountant if you don’t know what is applicable to your business. Your accountant can help you find a way to fix your problem only when he knows about it in the first place. Therefore, even feeling embarrassed or worried, you should always be honest with your accountant about your business.
Tip 8: Trim down the expenses
Office expenses, business lunches, petrol, professional fees and so on are examples of things you can be trimmed down. Keep everything that might possibly be business expenses, don’t throw out any of those receipts. It seems pointless to worry about buying a package of stamps, however, a few dollars here and there can really start to add up. It may maybe quite challenging for you to deduct on your own, so ask the handy accountant you hired to solve the problem for you. They can even help you figure out if you’re missing something. If you don’t have one, contact us right now!
Tip 9: Scheduling helps
In order to keep your business dates and meetings when it’s time to deal with your taxes, you can use an online calendar or scheduling app to create a system to filter out personal and business appointments. You can have a colour code to separate inter-office events, international/ domestic travel, or client lunches. This also helps match up expenses with meetings.
Tip 10: Deadlines
The sense of urgency should apply to tax deadlines. Put the deadlines in your calendar underlined three times, and give them three alerts. Tell your staff to remind you to get them done in time.
Happy Tax Season!
Also, read our YEAR END TIPS FOR SMALL BUSINESSES
Contact us if you need any help with your bookkeeping, tax returns, or any other accounting-related issues. We are available 24/7 no matter weekends or weekdays. Simply just flick us a message.