Unless you’re expecting a fat tax refund, sorting your taxes is commonly considered a tedious task that fills most people with dread. Every year here at Freshwater, we encounter countless new clients who have managed to fall years behind on their tax affairs DESPITE being owed refunds from each outstanding tax year!
“Tax Done Differently” is our motto, and we’re here to prove that staying up-to-date with your tax affairs doesn’t have to be a painful process. Instead, it can be seamless, satisfying, simple, and dare we say it – fun! That being said, here are a few of our key tips for maximising your tax outcome while ensuring that the process of filing your tax is a breeze overall…
Ensure Your Income Details Are Complete and Finalised Before lodging your tax return
Most Aussies now receive income statements electronically, which are automatically included in your return by the ATO. Employers need to finalise single touch payroll by the 14th of July. Similarly, private health funds need to finalise their annual statements by the 15th of July. If you receive managed fund distributions, their annual tax statements are typically issued between July and September. Lodging your return before information is marked as ‘tax ready’ can lead to delays or even unexpected tax bills down the track.
If you’re unsure of the rules around maximising your tax outcome, consult a tax professional
Whatever you do though, don’t choose your accountant based solely on who has the cheapest fees or promises the biggest refund. Relying on these criteria alone is likely to backfire, especially this year as the ATO is significantly ramping up its audit activity. Engaging a premium accounting service is the best way to ensure an optimal tax outcome while avoiding a pesky ATO audit. Please remember to double-check that the accountant you’d like to engage is a registered tax agent. If your accountant runs their business in a company structure, they’ll need to be registered with the tax agent board both personally, and in their company name. Ensure that your accountant is a registered tax agent here.
Embrace digital record-keeping
Using digital tools and software will not only help you keep track of income, expenses, and other financial transactions more efficiently, but it also makes it easier to store and retrieve records, ensuring you meet your tax obligations with minimal hassle. Our new software, Tax Dome includes a really handy app through which you can quickly and securely upload photos of receipts – filing them into the appropriate financial year as you go.
Stay Mindful of Due Dates
Keep track of important deadlines to avoid late fees and penalties. Mark key dates, such as the deadline for lodging your tax return on your calendar to ensure you meet your obligations on time. Better yet, request access to our key dates calendar, and never miss a deadline again!
Broaden your tax knowledge
We understand that most people find tax boring, but if you want the best possible outcome for your situation, it’s important to have at least a basic understanding of how our tax system works. At Freshwater Tax, we’re dedicated to helping you achieve this through our regular blog posts in which we keep you updated on relevant tax rules and laws in an easy-to-understand manner. Sign up here to receive our regular blog posts directly in your email inbox.
Maintain impeccable books
We CANNOT stress this enough! Over the years, we’ve seen countless bookkeeping files mishandled by well-meaning clients eager to manage their own books. If you handle your own bookkeeping, please ensure you have a clear system and thoroughly understand what you’re doing. Incorrect bookkeeping can lead to financial penalties, cash-flow issues, increased audit risk, higher accounting costs, and missed tax deductions. At Freshwater, we now offer free bookkeeping file reviews with every tax and BAS request. We provide a bullet-point list highlighting focus and problem areas in your books. If you don’t enjoy bookkeeping or are too busy, consider our affordable virtual CFO service.
Familiarise yourself with our tax return request system
In order to prepare your tax return, we require your official, signed tax request. This is a legal document ensuring that we have your permission to assist on your return. Our tax return request forms are designed to be as simple as possible to navigate, while also ensuring that we capture everything that we need from you at the outset. Ultimately, this minimises back and fourth when we are working on your return, ensuring that we complete this for you as quickly as possible. We now offer 3 ways that you can send us your tax request, depending on your preference and our completely transparent schedule of fees can be viewed here.
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By following these tips, you can transform tax season into a seamless, satisfying experience. At Freshwater Taxation, we’re dedicated to making your tax affairs simple and stress-free. Regardless of if it’s ensuring your income details are complete, embracing digital record-keeping, staying mindful of due dates, or maintaining impeccable books, we provide the support you need. Here’s to a successful and stress-free tax season!
