The mid-year means the end of the financial year in 2020. And its time to be prepared to line up the business and personal finances. Many hurdles strike in the finance managing pathway when it is the end of EOFY.
Thankfully, you have these tax tips in your hand that help prepares for your tax times and deductions faster. Here, you have these handy tips that you should follow to prepare for the EOFY.
Get Your Paper Work Done
The first tip to make a stress-free tax EOFY is getting your paperwork done before the time. And for this, you need to have the tax accountants record essentials on your fingertips including;
- GST returns and BAS record
- Selling and purchasing receipts ready on your desk
- Other records like BAS statement, tax returns, and super contributions for the employee.
Manage Debts Deductions
This is perhaps the most vital aspect of tax accountant planning as it will help you to remind the exact business expenses and deduction. For instance, many business entities use the instant assets of the Federal Government to write off concessions.
This is the high time to purchase some new business assets that you may require in the coming financial year. The reason behind this early purchase is the tax shall not be deducted if the payment has been made in this early year.
Manage Online Banking Records
The best way to smoothen up the EOFY process is to make the tax accounting record. However, the perfect way to manage the tax accounting record is to fill the online tax return statement.
During EOFY, we need to make the bank statement prints and fill the tax returns and current balance statements of the business loans and investments that we made.
However, this year you need to make all the statements manually or online and make things less complicated.
Maintain the Vehicle Logbook
For small business individuals, it’s essential to maintain the vehicle logbook with a minimum record of three months. The record will contain some essentials odometer for June 30th, 2020, including all the invoices and all business expenses receipt for your vehicles.
But to keep it accurate and simple, you can also opt for the online tax return apps and other tools to organise everything.
Prefer Online Tools for Tax Accounting
To make EOFY tax easier and make BAS business activity statement easier, you need to keep a separate record of the business banking and personal banking. It makes the tax filing process less stressful.
Moreover, by separating these processes, the risk of accidentally claiming the deduction will be less possible. However, keeping a track record would be easier with the help of online banking tools. In some places, banks also provide online banking tools like online invoicing, third party access to the accounts, bank feeds like QuickBooks, etc.
Advance Payment of Business Expenses
During the COVID-19 pandemic crisis, every business aspect, whether its owners or employees are opting for the ways that help to save money. So, the easiest way to save some extra money is to cut the cost during the tax payments.
For this, you can prepay your pending bills before the EOFY ends. For instance, if you wish to purchase new business assets that have values less then $350, make this purchase before June 30th. This will help to save the tax.
Claim the Super Contribution of Government
This is the time to know the Federal Government initiate contribution to the superannuation payments. If you settle down on the following requirements:
- Create low income
- Create the non-concessional contributions
- Earning a minimum profit of 10% from business or employment
If you meet with this requirement, you can apply to the government super contribution of around $500.
The tax accounting for the EOFY 2020 would be easy if you follow these tips mentioned above. It will help to manage the record and reduce the tax payment effectively. Moreover, you will be ready to receive the tax benefit from the government federation.