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How to Make Next Year’s Taxes Easier

Posted 08 Sep 15

The best way to avoid unnecessary stress during the self-assessment period is to prepare your company in advance for it.

By making just a few changes to your daily schedule, you can make the next year’s taxes much easier to handle.

1. Keeping track of your expenses

One of the main mistakes company owners make is waiting until the last minute to prepare the records of their business expenses for their self-assessment. There are many downfalls of this habit. If you haven’t recorded your expenses on a regular basis, there is a chance you might struggle to find all the receipts for your past expenses.

Often, even if you do find the receipts you’re looking for, you might not be able to recall what transactions they are the evidence of. Although tracking and organising your expenses might seem like a daunting task to do, we cannot emphasise enough how much easier your taxes can get if you turn it into a habit.

Keeping track of your expenses also gives you a better insight into your company’s progress, which gives you an opportunity to plan your financial year better.

2. Income

Make sure you keep a track of all the income you invoice. Any money you made through your business counts as your income, no matter how small it is and regardless if you sent your client an invoice for it.

A lot of people get confused which expenses and earnings can be deducted from their tax at the end of the tax year and as a result, are losing a large part of their income.

If you are unsure about which expenses you can claim as a company owner, contact our experts at Tawanda Accountants and we will be happy to create the best financial strategy for your business.

3. Hire an Accountant

One of the things our clients always mention to us is how much their life has changed just because they let us take the burden of taxes off them. Many small businesses decide to save their money by not hiring an accountant and spend a lot of the time on bookkeeping.

Although it might sound like a good idea at first, they soon realise they are missing out on the opportunities to develop strategies to boost their business. Especially in the first few years of a company’s existence, it is crucial that you spend all your energy and time thinking about your clients and the way to better and market your products.

Hiring a professional accountant can make your company management much easier and you will never have to worry about missing a document or an important deadline, because we will ensure all your records are kept organised, up-to-date and ready for an investigation at any time.

If you would like to know how you can better your business, contact our expert accountants at Tawanda Accountants.