No one wants to pay a bill at tax time - so the best way to avoid them is to get organised now. Here’s a few pointers under one roof for your 2019 tax return.
Tax time organisation
Don’t get hit with a surprise GST bill at the end of the financial year. Accounting software and sales and purchase records that show the GST amount spent are a great way to keep track of your GST liability. Make sure you
- Keep records of your GST in a separate account and
- Have an electronic copy (backed up on your computer).
Most of your office costs can be deducted from your tax bill. Without proper documentation however you may become ineligible to claim your full entitled deduction. Keep records of all
- Electricity bills
- Phone bills
- Office equipment.
A variety of different costs can be claimed but you can only claim the part of the fees related to your business. For example, the percentage of your home electricity you use to run your office not the full amount of the bill can be claimed. Keeping accurate records can be time consuming but allows you to find every deduction possible.
Motor vehicle expenses
Business related travel can be deducted from your tax return. For example
- Business related travel costs
- Travelling to clients offices
- Driving to purchase new equipment
- Travel fees when running general errands (ie bank or post office) and
- Traveling to see your accountant.
Ensure you keep a log book - either digitally or physically - to track your mileage and the dates you traveled.
The home truth about doing your tax whilst running a business is - it is difficult. Talk to your local ITP Professional and make business your focus and tax your friend.