Are you new at this? Or a little confused about what you need to get in order for your tax return?
Here is a quick guide to all the information needed by your accountant to get your taxation return done quickly with minimal fuss.
As the EOFY quickly approaches us, it is important to sort your records prior to your taxation return being undertaken. Without properly organising your records, you may be in for a bit of a *bill shock* as many accountants charge additional fees just to sift through your paperwork and can result in a delay in the actual completion of your return.
Step one: ORGANISE!
Yes, this is a bookkeepers love! Organisation, organisation, organisation. If you were to ever meet a bookkeeper that dislikes organisation – run for the hills!
- Gather and organise your Expenses: Do they match? Are you missing anything? This is REALLY important guys, this is where your deductions come from!
- Gather and organise your Income (Sales & Other Income): As above, do they match? Are you missing anything? While it may be obvious this is important, I cannot stress enough that this is necessary as it not only shows you your business’s income, growth and so on, it also is reported to the ATO and thus needs to be accurate.
Reconciliations are the best way to match your income/expenses and highlight anything that may have been paid for and not entered into your accounting software. From there you are then able to perform Profit & Loss reports for your use and your accountants use. Depending on the size of the business, it is important to do these at least once a month, so you don’t need to trace transactions from months to a year ago.
Step two: DEBTS
- Check that your accounts payable is up to scratch: Do you have any debts that you need paying? Pay them now so that they may be claimed as a deduction. This is dependant on the nature of the expense and your business. See your accountant for further information on what you can and can’t claim. Regardless, paying your debts is a good thing! 😊
- Check your accounts receivable is healthy: Do you have any debtors still outstanding? Are any needed to be written off and claimed as bad debt?
Step three: ASSETS
- Have you purchased anything during the Financial Year that categorises as an Asset? Make sure that these are accurately inputted into your accounting software. By doing so, you can print detailed reports from your accounting software which allow your accountant to accurately calculate depreciation for the asset.
- In addition, if you have recently changed accountants, check that they are aware of prior year asset purchases so that depreciation can be claimed.
Step Four: LIABILITIES
- Does your business have any loans/liabilities? It is important to use your statements to reconcile any interest expense that you may have incurred so that you may claim a deduction.
Step Five: ACTIVITY INSTALMENTS
For those registered for Activity Instalments (BAS/IAS)
- If you are registered and pay activity instalments remember to lodge and pay your instalments prior to having your taxation return undertaken. This is essential so that your taxation return can take into account payments you have made throughout the year.
Step Six: REPORTS!
Lastly, remember to compile the following reports to give to your accountant before having your taxation return completed.
- Profit & Loss
- Balance Sheet
- Cash Flow Statement
- General Ledger (Detailed) showing assets purchased during the year.
No time? Still confused? McGregor Accounts can assist you in getting tax time ready without the bill shock. We are able to liaise with your accountant in producing reports and more. And as a registered BAS Agent, McGregor Accounts can complete and lodge your activity statements with ease and experience.