Tax Time

For many of us, the thought of getting our paperwork together for tax time is a daunting one.

Once a year, every year, we are expected to have our paperwork ready for our accountants, and yet somehow
when the time comes around, we have no idea where to find it all!

Getting your tax paperwork organised with an easy system with some vital tools will not only take away the stress, but will also save you time and money.
 
Here are some helpful tips to assist you in finding what you need when you need it for your accountant.
 

Top tip 1: Know what you need

Get a list of information and records that are required for your tax return from your accountant.
 
Is your paperwork PERSONAL OR BUSINESS RELATED?
 
It will be the same each year ( except for a few small budget changes) so once you have this list you can plan ahead for each year.

Keep only the necessary paper work you require to cut down on unnecessary paper clutter.

 

Top tip 2: Tools

To set up your system I recommend the following tools:

 

Top tip 3: Systems - How to use these tools

a)        File in Style Pocket # 1

Label your pocket with the tax year e.g.: Tax Info 2015-2016
Place all tax related documents that come up during the financial year in this pocket.
 

a)        5 tabbed File in Style Dividers #1

Inside the pocket use a 5 tabbed File in Style divider set to capture the information you collect.
Include the following labelled categories on tabs:
Place all tax related documents that come up during the financial year in this pocket.
  • PAYG SUMMARIES
  • PRIVATE MEDICAL AND SUPERFUND
  • MOTOR VEHICLE LICENSE, REGO AND REPAIRS
  • INSURANCE & DIVIDENDS
  • MISC
As you receive any of the information or paperwork relating to these categories, place them in the labelled area.
This will be handed over to your accountant each year. Easy, organised and your accountant will love you!
 
c)        Receipt Box
 
Utilise the box you received your File In Style Pockets in to save your receipts for expense claims.
Include 12 Labelled envelopes, 1 per month for the financial year July to June.
You may wish to include separate or additional envelopes for specific claims e.g. Donations/ Dry Cleaning/ Petrol /Self Education/ Misc work related.
Place all tax related documents that come up during the financial year in this pocket.
 
d)        File in Style Pocket # 2
 
Label your pocket “FINANCES” Include all your bank statements for the current financial year in here.
Use your 5 tabbed divider set # 2 for each bank account. The reason for this , so you can easily reference any expenses or interest claims over the financial year.
Place all tax related documents that come up during the financial year in this pocket.
 

Top tip 3: Schedule time

No amount of tools will ensure organisation without scheduled time to work with those tools.
You will need to make time to get organised.
 
Schedule a time in your diary every week or so to keep on top of your tax paperwork.
Treat this scheduled time just as if it was an appointment with your doctor or dentist or dare I say your accountant!
 
Don’t leave it too late – we want to get on top of that tax paperwork ASAP.
This system will not only assist you with your tax paperwork but with any piece of paper that comes into your environment.
 
There you go ..why not use these tools and make this year’s tax time less taxing!