The deadline and extension of the deadline for filing income tax return have come and gone and it’s finally over! You have gone through a lot, running back and forth, collecting the documents mandatory for filing returns.
But, don’t you think it’s time you start prioritizing your taxes so that the next time around you can just lay back when the time for filing income return arrives?
Being a taxpayer, the last tax season must have been chaotic and stressful for you. It is now time to begin planning for the next tax seasons so that you don’t face the same confusions as before.
Plan When the Procedure is Still Intact in your Memory
You already know the procedure and since you e-filed the claim for returns just a while back, this is the perfect time to start tax return planning for the next season. This part is crucial because you can recollect the steps involved in filing the past tax returns. You can also seek the service of a Chartered Accountant to help you review the past returns and give suggestions to increase your returns.
Keep your Bookkeeping Updated
We have a habit of putting off the time for managing our finances especially when there isn’t a due date that needs to be met. However, irrespective of whether you must meet a deadline or not, it is very helpful to stay current with your business’s bookkeeping. It is impossible to try and recollect all the expenses your business incurred within a financial year.
By following a monthly bank reconciliation method, you will be able to detect any hiccups in the operation of the business. Assessing the cash flow on a regular basis will help you take the corrective measures in solving the issues and preventing huge losses.
Make the Most of Technology
You must have been one of those taxpayers who collected receipts and other important documents (which are required for filing returns) in a box. It is important to have all the documents needed to e-file returns ready in a piece, but things can be easier by making use of today’s technology. You can either scan or take a photo of the receipts and enter the transactions in your book of business.
There are also many systems nowadays for bookkeeping and finance recording, as well as apps that allow you to store a copy of the receipts on your smartphones and tablets.
Separate the Finances of your Business and Personal
Always maintain and keep your business and personal finance separate. By failing to follow this practice, you will end up surpassing certain expenses incurred on business or personal and miss out making claims or deductions on them.
Open a separate bank account for your business and keep a track of it so that the expenses or income do not get mixed.
Analyse your Financial Plans
A competent tax planning isn’t just filing for claims on basic deductions, you must be ensured that every measure is taken as well. You should take some time verifying certain aspects:
- Take time and choose the best business structure for your company.
- Check to be sure if all your investments are optimized for taxation.
- Ensure that your retirement funds and assets are protected.
Although looking at the above list can seem like a daunting thing to do, but with assisted services of tax experts, you will be well prepared for the upcoming financial year when you must file a return.
Delaying in the practice will only result in confusions and errors while filing for return when the due date arrives.