C&G's Guide to Getting Ready for Tax Time
As tax time approaches once again, it’s important to remember to be as prepared as possible! This will ensure that we get the most out of our annual income tax return, especially after the challenges of 2020 altering many people’s spending habits. In this C&G Blog, we help you get ready to balance the books and file your tax return like a pro.
Decide how you want to lodge your return
Whether you decide to lodge your return yourself or use a tax agent, there will always be pro’s and con’s. While the majority of Aussies choose to use a commercial tax agent, be prepared to pay a hefty fee (but remember that it is tax deductible!) If you prefer a DIY tax return, you’ll need to make sure that you have all of your details ready, including: a copy of last year’s return, records of sales and purchases made, payment summaries for any jobs you had over the last 12 months, bank statements, allowances, superannuation payments, work related expenses, and any pension or government payments.
Review your income
Stay ahead by reviewing how much income you have made so far this year and calculating your projections for the rest of the financial year. This will help you to get the most out of your tax return as possible and decide whether you need to implement any new strategies for the next financial year.
Balance the books early
It is essential to be consistent throughout the year and ensure that all your records are kept up to date. This includes staying on top of your receipts, expenses, and any outstanding invoices that either need to be paid or followed up. Don’t leave it too late! There are several free mobile apps to help keep a record of all of your receipts, including Shoeboxed, Wave, and OneReciept. Find out more here: https://tek.io/2QqcOE6
Forecast your budget for the next Financial Year
You should be budgeting all year round, but it is especially important at the end of the financial year to look back at your spending habits from the last twelve months and forecast for the year ahead. Just like you need to reflect and assess your career goals, your financials deserve the same attention. Have a look at what worked well, what didn’t work as well as expected and why you may not have met the targets you wanted.
For more information about getting ready for tax-time and to access the Tax Time Toolkit, visit the ATO website: https://www.ato.gov.au/