The tax season is just around the corner and we all know how gruelling it can be sometimes. With a lot of businesses running around till the last minute to get their paperwork in place, this period can get extremely stressful. Keeping that in mind here are few things you need to do to help you keep this period stress free.
First things First
Make sure you’re constantly in touch with your accountant. They’ll keep you updated on the proceedings and what needs to be done before the 31st of March, including what you can claim and what you can’t. This is an eventful period, and your accountants will be busy themselves, so the better prepared you are, the smoother the process and result will be.
Don’t spend your hard-earned cash on unnecessary interest and penalties. Make sure your accounts are up to date, tidy up loose ends and ensure you file your return on time.
Your assets and stock
Review your inventory. The value of your stock affects your business’s taxable profits. Conduct a thorough stocktake before the year-end and ensure you get rid of any out-to-date or damaged items, and write them off.
This is the right time to for you to ditch surplus assets. If it’s possible to sell these assets, great, otherwise simply ensure that you’ve written them off.
If you’re planning to buy any new equipment or assets, make sure you do it on or before the 31st of March. Making these purchases in the current financial year will help in reducing your taxable income and help you gain a full month’s depreciation.
It can also be cumbersome to keep track of all your expenses, so if you haven’t already gone digital, now would be the right time to do so. Scanning receipts and saving electronic invoices in your cloud saves time and space. Not to forget all the papers, and trees you’d be saving too.
The last step on the list is your staff. Check your payroll system and ensure it only includes current employees. Review their details further and ensure that everything which is logged in, is correct and up-to-date. Also do not forget to ensure that any former staff has access to company systems. If you find any discrepancies, make sure you correct them immediately.
Be in constant touch with all your employees. Special bonuses at this time of the year can be a great motivational tool for your employees. However, make sure to get the tax right on any lump sums being made. Remember that any bonuses for the current year, and holiday pay or long service leave paid out within 63 days after March 31st can be deducted against your current year income.
We hope these tips can help in making your life a little stress free, especially during this period. In case you have any other concerns or queries regarding your filings for this financial year, get in touch with us immediately, by either mailing us on firstname.lastname@example.org or calling on +64-9-972-2236.
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