Top Tax Tips

Tax is scary if you are not ‘in the know’ and in business the last thing you need is negative financial surprises. Preparation is everything – grab the bull by the horns and get organised and know what your liabilities are — prepare well.

Your business — Your Responsibility

Tax and your business is your responsibility. And the first important thing to remember is to do your research, meet with your accountant early and know what’s required. Hop on the internet, contact the Inland Revenue Office, your accountant or experienced taxpaying business mentors and become comfortable with tax and tax terms.

You can save yourself from any nasty tax surprises and shocks by regularly speaking to your accountant. Keep your accountant up-to-date with your business and ask lots of questions about record keeping and tax planning. Find an accountant who is willing to support you all year round — not just at tax time.

Like most things in life, if you know what you are up against it’s much easier to deal with and keep organised.  

Doing business means dealing with paper. Efficient filing and handling of paper once is important. Being able to find a document — possibly one or two years later — can be a nightmare without an effective filing system. Time is money!

Putting off tax planning until the last minute or not having tax as a priority can lead to oversights, money shortages and late penalties. If you pay taxes late, a use-of-money-interest (UOMI) charge will apply. Your businesses should try and avoid unnecessary interest payments on top of tax payments. The best way to do this is to organise and plan ahead. Some tips include:

  • Keep good records so you know what you owe and when.
  • Plan and budget for your tax commitments. Get help from your accountant or tax agent if necessary.
  • Create and print your own tax due date calendar to remind you of the key filling dates.

Don’t let taxes become a traumatic experience this year. If concerned ring the tax office. On the whole they are motivated to keep our businesses going. I’ve always found them helpful. If you need help, just ask.

Disclaimer: The advice provided on this newsletter is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

 

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