Tax is not a topic anyone enjoys, and the administration can be just as painful as paying the money. It is, however, an unavoidable part of running a business.
While it is necessary to pay your tax obligations, the good news is that technology is making the administration less painful by the day.
The best way to keep the anxiety levels down around tax lodgements is to utilise the technology to keep on top of your record keeping and to lodge your tax filings on time.
1. Bank Feeds
Bank feeds into cloud accounting packages. This removes a significant amount of data entry
2. Auto Rules
Auto rules that allocate tax codes to certain transactions. For example, the monthly rent may have GST / VAT on it, however the monthly bank administration fee may not. The cloud accounting software can recognise the transaction and auto apply these rules, once they’re setup.
3. Cloud Receipt Storage
Cloud based receipt storage, often where you can take a picture of the receipt on the phone, and the app will capture many of the tax attributes, and import this into your accounting software.
4. Enter Your Bills Immediately
Enter your bills once you get them, rather than when you pay them. You’ll capture the tax attributes at that time and you’ll get a much better forecast of what your tax bills will be.
5. Keep Your Books Up-To-Date
Keeping your bookkeeping up to date each month. This means you’re more likely to remember what each transaction was for, and hence how to code it, without having to go back to receipts and invoices.
Use payroll that is fully integrated with your cloud accounting software as this will include the tax lodgements that relate to your employees, again ensuring you’ve got the most up to date visibility of what you owe.
The benefits of the above tips are not limited to tax lodgements, keeping on top of your transactions is a great way of know what’s going on in your business and adapt accordingly if it’s all up to date – the benefits you’ll get from those insights far outweigh the costs of getting the work done.
What do you do if you’re running behind?
Accountants are great at helping you get back on track and dealing with the relevant tax office. Engage a good accountant and listen to their advice on what you need to do, both to get up to date and also stay up to date.