8th July, 2021
If you’re meeting your accountant soon to discuss your business tax return, please don’t go empty handed. Preparing for this appointment is not only wise, but saves a lot of time and effort for you and your accountant.
Not only will your accountant love you for it, it also ensures you get to claim the largest tax refund possible.
When using a new accountant, always start with last year’s tax return. It should have your personal details, tax file number, income streams, tax offsets, deductions and other relevant information previously claimed.
If you use a cloud accounting solution, all your data will be available online for your accountant. MYOB Business accounting software is a great product for capturing your business transactions. It allows you to record data in real-time and in a format that your accountant understands. Your accountant has access to it 24/7. Together, you can monitor your business performance and be prepared for your tax obligations.
Here’s a checklist of things to prepare for your accountant.
Your accountant will want to see records for all sources of incoming monies. These include things like the following:
The other records your accountant will want to see are those related to outgoing money. How much did you and/or your business spend in the past financial year in order to earn an income?
Keep receipts for all expenses and tax deductions you are claiming for your business. Scan and file them electronically so that they are accessible should you need them for audit purposes.
Accountants also require the following information for review, so scan or photocopy these:
Your accountant can work through every possible tax deduction available for you and your business.
Don’t forget to ask your accountant what tax incentives are available to you in order to increase your tax deductions too.
You are now prepared to meet your accountant having collated all of the required information above to fulfil your tax obligation. Rest easy – at least for 12 months before you have to go through this process again.
The information provided here is of a general nature for Australians and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.