How will you acting as our accountants assist us save money?
CPFS accountants would be your single most important outside adviser and potentially have the greatest influence every year on how your business operates.
Your speciality is running your business. Leave the financial detail to us as your accountant. If you use cloud-based accounting software, you’ll be able to keep track of what your accountant does, and always be able to see your business’s financial situation at a glance. We can add considerable value to the operation of your business.
Am I likely to get a tax audit at some stage?
The Tax Office will be cracking down on people who claim false expenses.
This financial year taxpayer reviews will be undertaken within the ATO, and many of these could be randomly audited which could include letters or phone calls, but no door knocks. Only in instances where the ATO identifies strong reasons to believe the taxpayer has not complied with their tax obligations, would the taxpayer then be escalated to audit.
How do I get organised so I can get a better tax refund?
By now many of you are thinking about getting your tax returns prepared and are not organised again. Rather than waiting for the end of the year to sort yourself out, now is the time to ensure you are doing everything you can to make it easier.
Here are some tips to make sure that in 2019 you’re able to make good on that promise to yourself to be more organised at tax time.
- Eftpos/credit card your work-related expenses: the ATO now accepts credit card and bank statements as proof of a claim so if you are shocking at keeping receipts then make sure you use credit card or eftpos for your tax-deductible expenses.
- Take a photo of your receipts: if you know you’ll forget to pull out your credit card or you simply prefer to pay cash then take out your phone each time you make a purchase that is claimable and take a photo of the receipt. To ensure those receipts aren’t accidentally deleted, save them into a folder on your computer (and a backup drive) called 2019 tax time. The ATO accept scanned receipts as proof of your deduction so you could even throw away the original.
- Use an app like XERO: there are so many different smartphone applications designed to photograph or scan and store your receipts. Take a look, choose one that works for you and start using it. The best ones allow you to take a photo at purchase, throw the receipt away and it saves the photo in the cloud to the correct category instantly.
- Keep a log book: To claim a tax deduction for car expenses there are only two methods available. The first is the cents per kilometre method, and the second is the log book method. Under both of these methods you can only claim for travel related to earning income. For claiming motor vehicle expenses under the Log book method you need to have kept a log book. You can do this on paper or use one of the many apps available on your smartphone to do this for you.
- Keep receipts for everything you are entitled to: this means making sure you know what you can claim. If you’re unsure, the ATO have loads of fact sheets for different professions online that you can download and read. If you think there is even a small chance that you might be able to claim something, then keep the receipt and ask us when we prepare your return. We can’t claim without a receipt but if you’re organised we can give you more options.
- Make a regular donation to charity: many people have the best of intentions when it comes to donating but simply forget. Why not set up a monthly donation now so that it’s all ready for you come tax time.
- Consider wealth creation strategies: research that rental property, book an appointment with a financial planner, buy those shares you’ve been looking at or salary sacrifice your bonus or pay increase. Simply make this the year that you do something about creating wealth for retirement instead of just talking about it.
- Look at your structure: many people keep buying investments in their own names because that’s what they’ve always done. The start of a new financial year is a great time to revisit how you are doing things to make sure you are set up in the most beneficial way.
Rather than feeling annoyed with yourself for not changing your bad habits, why not choose at least a couple of these tips to improve your tax refund result. It really is that easy and you’ll be much happier when you come to tax time.