The end of Financial Year (EOFY) is around the corner though in the wake of the COVID-19 pandemic and the bushfire crisis, business owners may understandably be feeling under-prepared.
There are a number of steps that you can take to ease the tax time process, whether it's better utilisation of technology and tools, allocating time in your week, or talking to a professional.
The official ATO website provides handy resources for up to date information on any Government initiatives that may be relevant to your 2019-2020 tax requirements - such as JobKeeper payments, instant asset write-off scheme and working-from-home claims.
Here are 7 tips to help stay on top on the EOFY and set yourself up for success going into the new financial year.
1. Put all the key dates related to tax requirements in your diary now so you know when things are due and give yourself time to plan.
2. Consider investing in a small business software accounting package, if you haven't already. Using an online electronic filing system will help you keep track of what’s coming in, and out, and keep the accountant costs down. Read here for tips on how to choose accounting software for your business.
3. Use good supporting tools. There are so many free or inexpensive tools you can now use to organise and automatically put all your day-to-day business transactions into buckets - such as apps for receipt scanning and coding. By getting into the habit of recording as you go, it can leave you with a whole lot less work to do when tax time comes.
4. Lock in an hour each week in your diary to review your accounts to make sure things are on track, and to update your records. By doing a little each week, you can save yourself stress and time when it comes to sorting out all these records at the end of the year.
5. Many business owners are understandably hands-on in every part of the business, but tax planning and preparation might be one area to leave to a professional. A final check by a tax expert is an effective way to know everything has been done correctly, that you are fully compliant and that you have all the appropriate deductions included.
6. Get tax savvy. Even if you do plan on using an accountant, it's important to understand the value and expertise they offer, and the basics of tax implications for your business. You can start by reading through the online information available from the Government and you might consider attending one of their tax essentials workshops in your area.
7. Set yourself on course for that final step towards preparation. Book the appointment for when you will need to take all your tax return information to your accountant now. Having that in your mind as a non-negotiable appointment will keep you on time, and ahead of the game.
Getting into the habit of regularly recording all of your business transactions and forward planning is a great way to make tax time more efficient and less stressful, meaning you can focus your time on running your business!
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This article provides you with factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.