3 Simple Tips To Prep For The End Of Financial Year
It’s that time of year again, only a few short weeks until the end of the financial year. We spoke to a finance expert to get the insider scoop on how you can get prepared & organised for tax time. She shared her three simple tips below.
1. Research your tax obligations and possible deductions
A lot of tax changes have happened over the past few years to help support individuals and businesses through COVID. Be curious and ask your accountant what tax related measures have changed during the year and whether any would be applicable to your circumstances. It’s best practice to do this before you send in your records, as it may change the records you need to provide - the ATO has some great Tax Time Toolkit resources as a starting point.
2. Organise your records
Digitally is recommended & where possible summarise key information. This will make the process more efficient, your records will be easily accessible should the Tax office ask for more details and it will save you on unnecessary extra fees from your accountant going back and forth. Handy tip: if you’re looking for a discount on fees this is a great way to get one.
3. If you have a tax bill, plan early.
Work out your budget and a reasonable amount you can pay in frequent instalments. Make sure you lodge your tax return on time and arrange a payment plan before the tax payment due date. This will save you on unnecessary penalty and interest charges.