Tax day comes up quickly, and this is often a troubling time if you're a small business owner. After all, you may dread this time of year, but you've still got to make sure that you are fully ready, no matter what. As you check the days off the calendar, what should you do to make sure that you are compliant and ready for that deadline?
Reconciliation
Before you can be completely sure about your tax liability, you have to be happy with the state of your books. This means that you need to reconcile them against your bank statements to show that all of your record-keeping is entirely accurate and up-to-date.
If you've never reconciled your books properly before, then you may have had to make some assumptions or other decisions that may not have been based on fact. This is not a good position to be in, as one error could hide another, and you may simply be compounding your problems.
In and Out
You should also have a good look at your debtors and creditors, also known as accounts receivable and accounts payable. To begin with, make sure that you pay any bills before the tax deadline so that you can account for them in this year's tax calculation. You should also contact any debtors who are delinquent so that you can get as much money into the bank as possible to cover those taxes.
Sorting Your Contractors
If you work with any independent contractors, then you need to tidy up their paperwork as well and make sure that you provide them with the necessary documentation before the appropriate deadline. Remember, you must classify anyone who works for your company correctly, so make sure that they are an independent contractor and could not be viewed by the tax office as a de facto employee.
Working With an Expert
Have you ever worked with a bookkeeper before? As you go through this list and start to look at the condition of your paperwork, then you may seriously wonder why not. Now is the time to bring them in if you have any misgivings or seriously want to bring all of your records up-to-date. Remember, a good quality bookkeeper will be able to reconcile all your accounts and stay on top of those debtors and creditors. More than that, they will help you to relieve the stress associated with tax time and get all of your returns off to the ATO. Contact a bookkeeping service to learn more.
Share10 December 2019
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