Running your own business is challenging, and that’s before you add the stress of doing your own finances. But it doesn’t always have to be.
Having just been caught up in another tax return-filing rush, we want to share some best practices to help business owners like you avoid waiting until the very last minute. Read on to discover three essential habits of organised organisations…
Upload receipts immediately
You already know how important it is to save all of your receipts for potential tax deductions. The thing is, receipts are very easy to misplace, especially if you have hundreds (if not thousands) of them scattered around your home or office. The solution to this problem? Real-time accounting.
Rather than spending valuable time searching high and low for faded paper receipts just days before the tax deadline approaches, consider using an online accounting tool. With cloud accounting software, you can quickly snap a picture of your receipts on your preferred mobile device, easily track spending, and submit an expense claim all in one place. It doesn’t get any easier than that.
Taxes seem to be getting more and more complicated as the years go by. And tax rules and regulations are constantly changing too, often making it difficult to keep up. That’s why it’s essential to factor in some time into your day to keep abreast of the latest developments and ensure your compliance – especially if it’s your first time fulfilling your tax obligations.
In addition to making sense of income tax rates and allowances, make a note of the key tax dates so as to not incur a late-filing or late-payment penalty. If you find marking the dates in a calendar to be both unreliable and time-consuming, opt for cloud accounting software. This way, you don’t have to worry about missing a tax deadline and you’ll know exactly what you owe (and have to save) long before any deadlines approach.
Schedule regular reviews
The last and most important habit that every business owner should practise is scheduling regular reviews of your finances. Monthly or quarterly analyses – including revenue, expenditure, and forecasts – will help you to avoid nasty shocks and unexpected tax bills, as well as make your annual accounts much easier. It will also allow you to keep track of your business progress and performance.
Did you achieve your financial goals this tax year? What goals do you plan on setting next tax year? These questions can all be answered with the use of the online accounting tools we offer, such as QuickBooks and Xero. Nabarro Poole were very early adopters of this software and are therefore able to easily integrate your existing records with the tools we use on a daily basis.
Want to learn more about cloud accounting? Speak to a member of our team today!