As the financial year has come to an end now is the time to start thinking about your tax return. For many this can feel like a daunting and overwhelming task and so it is often left until much closer to the 31st January filing deadline. There are however things that you can do to simplify your tax return as noted below:
1. Keep your business and personal receipts separate
With so many receipts nowadays it is easy to loose track of them and forget what the purchase was actually for. Ashored recommends setting aside some time on a regular basis to separate your business and personal receipts and clearly annotating any receipts which you may later have forgotten what they were for. By taking the time to separate and clearly identify your business receipts it saves you having to frantically search for them months down the line and ensures that all your business expenditure can be claimed saving you tax.
2. Have a separate business bank account
Of all the top tips, this is by far Ashored's favourite!
By having a separate bank account and ensuring that all business transactions go through the bank account it effectively gives you a checklist to mark against to ensure that you have all the necessary invoices and receipts. It also saves you or your accountant time as you know that the transactions all relate to business. There is no need to query whether a transaction was business or personal expenditure and have to trace back to the receipt only to find that it was a personal expense and disallowable.
3. Employ an accountant
For many just the thought of employing an Accountant can be scary as dare I say it but we are often stereotyped as being boring and unapproachable. Ashored understands that you priority is running your business and that your time is better spent doing the work than maintaining the admin. This is why Ashored offer a friendly and dynamic approach to your bookkeeping and accountancy requirements that revolves around your business.
4. Ensure your accountant understands your business goals
Ashored believes that a good bookkeeper or accountant should work with you to achieve your business goals. In order to do this you need to make them aware of your future plans and any capital expenditure. By involving your bookkeeper or accountant in your business decisions they should be able to offer advice on the different options available saving you both tax and money.
5. Get it done sooner rather than later
By getting your records to your bookkeeper or accountant sooner rather than later it means that you are aware of your business position and can act accordingly. Ashored suggests that you have either monthly or quarterly management accounts prepared so that you can regularly assess your business performance and make changes as appropriate. If this is not an option then by completing your tax return sooner rather later it allows you to budget for your tax payment due by the 31st January rather than having a shock and to suddenly find the money at short notice.
For more information on how Ashored Bookkeeping and Accountancy can support you to simplify your tax return and achieve your business goals please get in touch.