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How to catch up on your business taxes without giving away your weekends.

If you've fallen behind on your taxes and just need to get the dang thing done already, this is the day!

You’ve got this and we’re not going to let you waste another weekend getting nowhere shuffling papers.  There are kids to feed, cakes to bake and that book chapter to write… well, at least one day.

Here are the 3 parts to catching up on your business taxes.

 

  1. LIST YOUR BUSINESS INCOME

  2. LIST YOUR BUSINESS EXPENSES BOTH TAX DEDUCTIBLE AND NON DEDUCTIBLE

  3. OTHER STUFF YOU NEED READY FOR YOUR TAX AGENT OR TAX ACCOUNTANT

GOAL 

So the end goal is for your business tax return to be filled out and lodged with the taxation office. 

If you’re an Australian lodging your own tax return this will need to be done before the 31st October.  If you’re using a tax agent or tax accountant in Australia then they may be able to get an extension for you. It’s best to find a tax agent before 30th June so they can add you to their lodgement list. Tax agents often receive extensions to lodge beyond the 31st October deadline.

GET TOGETHER YOUR BUSINESS INCOME IN ONE LIST

If you have all your business income in one bank account then you’re doing great! Well done you! This makes it fast and simple.  If not that’s OK, don’t panic.

Make a list of all your business income for the financial year. Include details such as the date of the invoice, the invoice number, the amount, and the GST charged.  Add that up for the financial year starting from 1st July to 30th June.  If you’re a Kiwi the financial year is 1st April to 31st March. This total is your business income. This includes sales of your goods and services to your customers. Don’t include loans from the bank or deposits from your savings account.

You can either summarise your transactions ready for your tax accountant using Excel, or you might use cloud accounting software such as Xero.

 

YOUR BUSINESS EXPENSES BOTH TAX DEDUCTIBLE AND NON DEDUCTIBLE

Next, we’ll need a list of all the business expenses you paid for or owe to people for the financial year. Again it’s easier just to use your business bank statements and summarise them in Excel or in accounting software.

There will be some expenses you paid for your business that aren’t deductible, like fines and private usage of phone or private use of the company car.  Just include everything to start with and your tax agent will let you know which ones you can claim as a tax deduction.

If you’ve paid for business expenses using cash or your personal credit card etc then get together all the receipts and supplier bills dated between 1st July and 30th June (Aussies) or 1st April to 31st March (Kiwis).  Add these up in a spreadsheet.  These will be your business expenses.

Did you use your own car for business travel? Have a logbook summary of the business-related travel and total kilometers traveled for business for the financial year.

HAVING IT READY TO GIVE TO YOUR TAX AGENT OR TAX ACCOUNTANT

Before you see your tax accountant or tax agent have all the information ready to they can get the job finished in one sitting.  Use this mini checklist as a guide

  • Invite them as an Advisor in your Xero accounting software
  • Email them a digital copy of your business bank statements or the spreadsheet summary you prepared
  • Give them a list of all the customers who owed you money on the last day of the financial year.
  • Give them a list of all the suppliers your business owed money to on the last day of the financial year.
  • Have a stock take figure if you’re a retailer on the last day of the financial year. Add up the cost of your stock that wasn’t sold on the last day of the financial year.  If the stock is now worth less than you paid for it let the accountant know the lower price.
  • If your business paid people let your accountant know. Ideally, these people have their own ABN or company, otherwise, let your accountant know as they may need to be added as employees of your business.
  • Did your business borrowed money for a company car or operating lease then let your accountant have a copy of the contract and any loan bank statements so you can claim the interest on the loans as a deduction.
  • Where are you working from? Gather up your home power and phone and heating bills and let your accountant know the floor area of your home office as a portion of the floor area of your home.

Ok so now you’re ready for your meeting, good luck!  Want to keep the momentum going and do some leg work yourself? 

LET’S RECAP.

You’ve summarised all your business income, you’ve got together all your business expenses, you’ve got the stocktake figure, loan statements, and employee details. You’ve also got together the details for private usage, home office expenses, and work-related travel using your personal car.

Take the first step!

Imagine how good it will feel when it’s complete PLUS you’ve learned some super important new money tips today!

 

 

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