Filing tax returns at the end of the financial year is a dreaded task by the majority of business owners. The sheer thought can be overwhelming, but unfortunately, it’s an unavoidable job that all companies have to deal with.
The only way to ensure tax filing doesn’t become a significant time and revenue drain on your business is by starting to prepare long before the deadline.
There are many factors you need to consider when it comes to planning for tax day, and following a set plan is important to make sure nothing goes wrong.
We have put together a list of tips for preparing for the end of the financial year to ensure that it runs smoothly for your business.
Gather and store all your important information
Although it can be a chore, gathering all the information needed to prepare their tax returns before the big day is essential, as all of your accounts will need to be backed up; this includes balance sheets, cash flow statements, financial statements, income statements etc.
Keep on top of managing your accounts
You should make tax planning an ongoing priority for your business with monthly check-ins. We understand it can be difficult to keep on top of everything, which is why we offer a bookkeeping service for businesses that are struggling.
Learn about new tax credits
You never know what tax credits or loans may be available. Being aware of these when preparing for tax day is important if you want to ensure you’re taking full advantage of any available financial aid.
Sort your expenses
Your expenses reduce your profits, meaning you pay less tax. It’s critical for you to keep track of everything you spend, as in the long term it may save your business money.
Chase any overdue payments
Any unpaid invoices can create complications at the end of the tax year, so chase your debtors well before the reporting deadline begins and get those payments in the bank as soon as you can!
Double-check accounts against your records
Do the figures in your accounts and tax return match your supporting documents? Invoices? Bank statements? Make sure any sales made but not yet paid for are listed as outstanding debts owed, rather than as revenue.
Make sure you update your employee data
Depending on the nature of your business, in the space of a year, a lot of employees can come and go. Make sure to keep all the information on your staff up to date, as you will be liable for any mistakes.
Back everything up
At the end of the financial year, there is a lot of data, and a lot to organise, with the potential of important documents getting deleted, misplaced, or lost. You need to make regular backups of accounts so that if any data does disappear, you can quickly pick up where you left off.
Or, you can just employ a great accountant…
The best way to achieve smooth and accurate year-end reporting is to hire an experienced accountant who can get to know your business in depth.
Here at One Two One Accounts, we offer a range of services that can make the end of the financial year a much simpler process for you. Why do all the work, when we can do it for you?
If you don’t already have an accountant, and the thought of tax day is starting to become overwhelming, get in touch with us and see how we can help.