Tax returns have a tendency of sneaking up on you, always leaving you feeling rushed to complete it. Filing taxes all alone can be an overwhelming task; tax returns are notoriously time-consuming and stressful. However, it is vital to your business that you complete these to the best of your ability. Figuring out how to obtain the best outcome from your tax return can also be tricky, but luckily there are a few places that you can start to try to make the process easier on yourself.
Here is a checklist of everything you need for a successful tax return:
- Get your paperwork completed early on in the process – Make sure that you have gathered all of the paperwork you need, including bank statements or any other papers used as proof of purchase. While making a digital spreadsheet to track your company’s yearly expenses is helpful, an organisational tool is key. Creating a category system to organize the receipts and records for your business is also an integral part of ensuring a successful tax return. Some typical examples of possible categories are rates, property management, repairs, maintenance, and body corporate fees.
- Have a copy of the previous year’s tax return handy – Looking at last year’s tax documentation is a good place to start when beginning this year’s tax return. You are likely to find some helpful information from your previous return, although you will need to make sure you include the updated version of the information on your new tax forms.
- Create financial statements as well as schedules – A schedule of assets is important because it details the items that your company purchased, sold, or disposed of throughout the year. Organising these transactions helps you keep up with your income goals. Keeping a formal profit and loss statement as well as a balance sheet can be a simple yet vital process as well. Finally, a chart of accounts saves you some re-organizing later if you simply keep an up to date record of the balances within your schedule (along with a description of what it is).
- Seek out expert assistance from a professional to ensure the best tax return results –A tax professional will know the most about the ins and out of tax issues related to your industry. These experts have spent a lot of time dealing with tax returns, meaning that their knowledge can benefit you as a business owner, especially if you have any confusion about deductions.
Contact the Carbon Group team on our website if you need any help understanding what qualifies as an allowable deduction. Property insurance, legal expenses, repairs, and maintenance are all expenses related to property management that count as immediate deductions. Tax return professionals are able to come up with the best solutions to help your company.
Additional Tax Return Tips
Here is a list of additional paperwork that is also helpful to have on hand when completing a new tax return:
- Work-related expenses
- Travel expenses
- Motor vehicle expenses
- Charity donations