Are you getting back everything you are entitled to?
Tax Season – why start now?
I know I know, tax season officially starts on the 1st July and you were hoping not to think about taxes for at least another month, or three, or more?
I too used be like that, I usually did my tax, in a panic, on the eve of the 31st October, knowing full well that I wasn’t getting back what I was fully entitled to.
No more, I changed a few years ago and learnt that being prepared (yeah, boo, hiss!) not only made life easier, but increased my return. Here are a few tips that work for me.
Wealthy Chicks Tax Prep Tips
- Do you have an accountant that specialises in what you do? My accountant is both a savvy property investor and small business owner. Yeah, he costs a bit more than your local H&R Block, but that small investment pays off significantly, and is tax deductible next year.
- Do you listen and apply the advice your accountant gives you? No, you forgot, got lazy, whatever the excuse you have less than a month, so get on to it, it’s smart advice.
- Is your data and records in order. Missing receipts, invoices etc, get on to that now to minimise delays, or worse, not able to claim a legitimate deduction.
- Review if prepaying expenses is appropriate for you, for example interest on loans, business expenses, water or council rates, health insurance.
- If you have investment properties are there any repair or maintenance items you can attend to before the end of the year?
- All income received, no, then chase those clients up, today, chop chop.
- All invoices paid? No, then get on to it, close off this year
- Completely understand all the deductions you are entitled to and revert to item 3.
If you need any more advice I urge you to employ an accountant, they really do make a difference, and for further information try the ATO website here, as it has a lot of helpful information.
I will head my own advice and start preparing for the end of the year, with enthusiasm as the beneficiary will be my bank account.