This tax season will be unfortunately a stressful time if you’re one of many small business holders. You do your own things without any bookkeeping or other help and haven’t bookmarked your business all year long. As you strive heavily to collect all your receipts and costs and try to account for everything you have done during the year.
Here are the best four checklists for you during this period before translating your books to your accountant and bookkeeper:
Collect all tax documents.
Collect all documents, pull together your receipts, bank statements canceled checks, and paid bills to cover your purchasing, business expenses, earnings, and transaction records.
If you’re a small business owner who wants to place any expenses on personal credit cards (e.g. a home office), then the paperwork must always be obtained to ensure that all company costs are taken into account.
Sort financial papers and categorize them.
Sort and categorize each business expense into various buckets. After you compile your financial statements, including vehicle expenditure, home office costs, utility expenditure, medical costs, office supplies, and care. This makes it easy for your accountant to access the right numbers. Feed them into a tablet or accounting software, and then calculate the amounts you can claim.
Ensure that all sales are registered.
Tracking income is a real problem for small business owners. You have to tell your accountant: “This is how much money I have earned this year,” because the amount must be 100% exact if you’re audited by the Australian Tax Office. ATO is not worried if all your business expenses are not reported but you are being investigated for not reporting your sales properly. Sit down and try to identify a better way to keep your financial records — not just for the financial year but for the whole year so that next year you won’t get in this same situation again.
Hire A Bookkeeper.
Where can you find time to record a month or a year of records if you don’t have time to make a little bookkeeping every day? Various people have structures. Most importantly, you have a program that you have and use daily – whether you employ or do a professional bookkeeping Services.