Tax Time Tips
Top Tips to Make Tax Time Paperwork Less Taxing!
For many of us, the thought of getting our paperwork together for tax time is a daunting one. Once a year, every year, we are expected to have our paperwork ready for our accountants, and yet somehow when the time comes around, we have no idea where to find it all!
Getting your tax paperwork organised with an easy system with some vital tools will not only take away the stress, but will also save you time and money.
Here are some helpful tips to assist you in finding what you need when you need it for your accountant.
Top Tip 1: Know what you need – Check List
Get a list of information and records that are required for your tax return from your accountant.
Is your paperwork PERSONAL OR BUSINESS RELATED?
It will be mostly the same each year so once you have this list you can plan ahead for each year.
Keep only the necessary paper work you require to cut down on unnecessary paper clutter.
Top Tip 2 : Tools
To set up your system I recommend the following tools: ( see image)
- 1 x MAGAZINE HOLDER
- 1 x 5 tabbed plastic pocket
- 1 x PLASTIC Binder Wallets
- 1 x LEVER ARCH FILE
- 1 x RECEIPT BOX AND 12 x envelopes
Top Tip 3: Systems – How to use these TOOLS
- a) Magazine Holder
Label your Magazine holder with the tax year e.g.: Tax Info 2014-2015
Place all tax related documents that come up during the financial year in this magazine holder.
Inside the magazine holder you can include the b ( 5 tabbed Project Pocket divider) & (plastic pockets) to capture the information:
- b) 5 tab Project Pocket Divider include the following labelled categories on tabs:
- PAYG SUMMARIES
- PRIVATE MEDICAL AND SUPERFUND
- MOTOR VEHICLE LICENSE, REGO AND REPAIRS
- INSURANCE & DIVIDENDS
As you receive any of the information or paperwork relating to these categories, place them in the labelled area. This will be handed over to your accountant each year. Easy, organised and saves time.
- c) A4 Binder Wallet:
In here include all receipts and Invoices for Medical Expenses for Out-of-Pocket claims
When it gets closer to the end of the financial year, put together a spread sheet including the following categories:
|Name on Invoice||Amount of Claim||Amount received||OUT OF POCKET /GAP|
You can also ask your Private Medical and Medicare for this information.
Remember to ask your local chemist for a list of claims you have made through the year.
Check with your accountant what the threshold amount is for you to claim this.
- d) Receipt Box: Utilise a box to save your receipts for expense claims.
Include 12 Labelled envelopes per month for the financial year July to June.
You may wish to include separate envelopes / plastic pockets for specific claims
e.g.: Donations/ Dry Cleaning/ Petrol /Self Education/ Misc work related.
- e) Lever Arch Folder:
LABLE your lever arch folder “FINANCES” or “TAX”
Include all your bank statements for the current financial year in here.
- Show proof of income.
- Reference any interest claims over the financial year.
- Also Include any bills for claimable expenses in here. This will allow you to show proof of payment for any of your expenses you are claiming.
Top Tip 4: Schedule time
No amount of tools will ensure organisation without time scheduled to work with those tools.
You will need to make time to get organised.
Schedule a time in your diary every week to keep on top of your tax paperwork.
Treat this scheduled time just as if it was an appointment with your doctor or dentist or dare I say your accountant!
There you go ..why not get those tools and implement this system, I guarantee that you will find this year’s tax time less taxing!
If you would like any assistance in setting this up please connect with me on firstname.lastname@example.org or call on 0402 109 007.
Don’t leave it too late – we want to get on top of that tax paperwork ASAP
The Paper Flow system will not only assist you with your tax paperwork but with any piece of paper that comes into your environment.