An Organised Life - How To Set Yourself Up For Tax Time Success
Victoria Harris, Founder of New Zealand based start up The Curve, shares her tips & tricks for ensuring you stay on top of your finances throughout the year to help avoid that last-minute scramble at the end of the financial year.
1. Get organised and keep records
Keep all your expense receipts (even for that $4 coffee!) and keep copies of all invoices you send out to customers or suppliers. Try to pay for anything that could be a claimable business expense through your business account, so you've got an electronic trail. And ensure you keep all of those records for seven years (for legal purposes). Having a good filing system is key to being organised too. When it comes to receipts and invoices…..if in doubt, keep it. Make it a habit.
TIP: The An Organised Life signature black boxes are great for storing receipts.
2. Use some type of accounting software
Having everything online will be a huge help and make tax filling a lot more seamless when that crucial time comes. Make sure you find an accounting system that works for you e.g Xero, MYOB etc. Talk to other small business owners and get recommendations. When everything's filed electronically and tallied up automatically, it can save you a lot of time (and money).
3. Be prepared
Do not think your first year in business is tax-free. Ensure you are putting a little bit of cash aside each month to ensure you have enough money in case you do get a tax bill. Don’t put it off. Get prepared now, to save time in the future.
4. Ask for help
Using an accounting professional can be costly. However, they do know all the ins-and-outs of tax, so could end up saving you money in the long run. Investing in some professional tax advice could be a good initial investment until you feel confident enough to do it yourself.