“If you fail to plan, you are planning to fail”
- Benjamin Franklin
This is very true with tax. We are coming to the end of tax year, a very busy (and sometimes very stressful) time for companies around the country.
Some business owners suddenly realise just how much they hadn’t accounted for or included in their projections when the end of financial year rolls around, so it’s the perfect time to hone your planning for the next tax year.
Our first tip? Start taking notes while collating and organising your tax records. What went wrong? What was filed incorrectly? What processes and systems need to be better? For example, if you’re not already using a cloud-based cashbook tool like Xero, it could be time you consider the switch.
Make a calendar or task list to sort out your regular accounting processes. What needs to be done every week? Each month? Once a quarter?
The more regular tasks should be…
- Sorting your bills into action piles, and work out which bills are the highest priority
- Paying due invoices, or ones with an incentive (such as a discount)
- Mailing out new accounts receivable invoices
- Processing new orders
- Recording sales transactions
- Depositing the cash and cheques for the day
- Recording withdrawal/deposit transactions in Xero
- Reconciling bank statements
The less regular tasks will be GST, PAYE and Income tax related tasks.
Take this time now to meet with your accountant. Not only will they be able to help you wrap things up this financial year, they’ll be able to help you make all the necessary changes for next tax year. Get to them as soon as you can (seriously, stop putting it off!) because some changes for next year may need to be implemented before 1 April. If you miss this cut off, you could be missing out on potential tax savings.
If you’d like to talk to one of our experts, contact us now (again, don’t put it off…) to arrange a meeting.
We look forward to helping you save on tax!