Get organised!! It’s tax time
So I am not an accountant or tax specialist – so this is not advice about tax. I just want to give you a few tips before the end of the financial year so that you can be organised.
Chances are you worked from home a bit this year, or received job keeper or job seeker…the Covid19 pandemic has changed our world. Probably more so for those of us in Victoria, but where ever you are there are a few things you need to be on top of when lodging your tax return!
It’s a bit of a panic time – getting all those things together so that you know what is going
This is a great time to set up a system if you don’t already have one. Systems do not have to be complicated but they do need to suit you. A box, an email address particularly set up for bills, a folder.
One of my very favourites is to take a photo on your phone for every receipt you get when you get it and keep it in a folder called tax time.
It would be nice to think we can set aside the time to put all the information you need for tax in a neat spreadsheet and have everything up to date every month but unless you are a book keeper or particularly organised you will not make this a priority! (If you are that person stop reading now – this is not for you, but for the disorganised of us).
Make things simple always – for example when a client buys an investment property I will always advise starting a new bank account and keeping all income like rent / outgoing expenses like loan payments, rates and repairs in that account. That way when going through everything for tax you can see it all in one place.
Where do you keep receipts, bills and records at the moment? I get mine all emailed and everything comes out by direct debit. I use tax time to do a quick run through to make sure what I am spending regularly on utilities, phone and internet is competitive and suits my needs.
I have a book keeper who is in touch with all my business stuff but still have to look after my personal stuff and let her know what I am spending on business.
I note here having that person has been a game changer in my business. I want to focus on what I am doing while knowing my staff are getting paid and all my obligations are being met.
So one or two of you may have spent a bit of time working from home – if you are Victorian lets face it we have barely left our homes in twelve months – please have a good look at the ATO website https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/home-office-expenses/ and KNOW the different methods for claiming those expenses.
If you are complicated financially you are probably using an accountant (and I recommend this). If you are doing it yourself did you know if you lodge your tax return yourself using myTax, which is available through the myGov website and ATO app, most information from your employers, banks, government agencies, health funds and other third parties will generally be pre-filled for you by late July.
If you are a small business and have a book keeper then you know what you need. If you have been doing it yourself take a good look at what you are doing and calculate how much time it is taking you. I know from experience you will save both time and money outsourcing this. The book keeper will also make sure you are meeting your obligations. Very handy!
So while we still have a few days left in this financial year make time to get yourself organised. Set up your systems and develop a new habit around your money system to make sure you are not sitting in a pile of paper at tax time next year, wishing you had made the change you needed to!
Phoebe x