With the end of the financial year just around the corner, it is a good time to think about your taxes. But did you know that you don’t have to wait until March of every year to start your tax preparations?
In fact, you can prepare yourself throughout the year. This removes the need to finish the financial period in a haze of stress - frantically hunting out receipts and trying to reconcile your bank accounts.
So, how can you be proactive and get prepared?
There are three things that we recommend, to stay on top of your day to day financial tasks, to keep your records tidy, and to stay in touch with your accountant for advice and support.
Stay On Top Of Day To Day Financials
Trying to match up 6 months worth of transactions is going to be a headache. Procrastinating and allowing simple financial tasks to pile up stops them from being simple. In fact, they become quite complex when you have to unravel what you spent where and any discrepancies in payment.
However, if you make sure that you complete your financial tasks every couple of days, then you can deal with things when they are fresh in your mind. These are the things you should do regularly…
Account Reconciliation: Know exactly where your money is going and when it is coming in by keeping your account transactions up to date.
Invoicing: Cash flow is one of the most important things in a business. Make sure the money continues to flow in as it should by sending your invoices out on a regular basis.
Accounts Receivables: Sending an invoice out is only half of the job. You also need to make sure the payment comes in. The longer a debt is outstanding, the harder it is to recover, so stay on top of your receivables as well.
Keep Your Records Tidy And Handy
Have you ever spent hours hunting through your drawers, files, pockets and bag for a receipt? Or the details of your last stock order?
Save the time by keeping your records in a cloud based accounting system like Xero. Not only can you lay your hands (or your eyes) on all of your past transactions with a click of a button, but you can also streamline your systems.
Xero has lots of great functions like…
Creating rules for regular transactions, ensuring they are always coded in the right way, with the right tax rates
The ability to photograph and upload receipts, assigning them to expense claims
Setting up repeating invoices for regular, recurring payments
Save templates for a consistent, professional look and so that you don’t have to recreate files every time
Access your records from anywhere you have an electronic device and a data or WiFi connection
Stay In Touch With Your Accountant for Advice and Support
Instead of trying to muddle through your finances, reach out to your accountant for support. It is much better to ask a question and handle the query correctly from the start, as opposed to having to fix a major error later.
Many people have the perception that it will cost a fortune to contact their accountant, and that may be the case with some accountancy firms. But here at Cleaver Partners we tailor our level of support and involvement to suit your business needs.
We are always on the lookout for new ways to achieve better results for your business. So, by staying in touch with us throughout the year, we can consistently apply our findings to make the whole accounting process as easy as possible.
Across the year, we will prompt you for the information that we need to keep your finances in order. But in case you want to make sure that you are on track with each stage, you can check out the calendar that the IRD publishes right here.
So, if you are ready to make the end of this financial year as stress free as possible (and all the other financial years still to come), then get in touch with us here at Cleaver Partners.