Here are our top tips on record keeping. When it comes to tax time, it is vital that you have mastered your record keeping practices to make the whole process a lot simpler and stress free.
The ATO have tightened their belt on tax deductions more than ever which means it’s super important that your record keeping is up-to-date and complete to substantiate all claims you make and save yourself the headache of wasting endless hours tracing back records! Below we have compiled a few helpful tips on better ways to better track your income and expenses.
Let’s be honest, the shoe box approach is outdated and rather risky… how many times have you found a receipt at the bottom of your bag and it’s been faded or smudged unreadable which could be costing you hundreds even thousands in deductions, because it all adds up. Keeping a soft copy by taking a photo or scanning your receipts safeguards you from any incidentals and keeps all your records in one place. Be sure to have a backup system in place for extra security just in case.
What to Keep?
Now that you have the “recording” part under wraps, the second most important tip is knowing what records you should be holding onto and need in the first place. It’s crucial that you keep track of all the income you receive during the financial year which includes salaries, interest and dividend income, foreign investments and any rental property income you may have earned.
Next step is keeping track of all your expenses which are work-related and tax deductible, such as a purchase of a new laptop, stationery and phone bills. Also costs like charitable donations which are commonly forgotten, tax agent fees paid for and professional membership fees can be claimed on your next tax return so keep a hold of those receipts!
Have a system
Keep it orderly – Having a system in place will make things a whole lot more streamlined and efficient for you, and let’s not forget the Ezytaxback accountant dealing with your account. It’s as simple as keeping things in date order, and if you have a lot of outgoings to record, breaking down expenses into months or quarters will help you to keep things more organised.
If you would like more helpful tips, or need assistance in completing your next return please don’t hesitate to contact us here – contact.