Organising your receipts and documents in order to prepare yourself for tax season is a task many avoid.
Being organised is a crucial part of submitting a successful and correct tax return for your business and forms an imperative part of the tax season itself.
The following organisation tips will assist companies and businesses in the preparation for tax season so as to ensure a stress free and hassle-less process.
Keep all of your receipts at all times! We cannot stress this enough. Be sure to keep all of your receipts for tax purposes. The best and most efficient way to store these important documents is to keep a categorised folder for all of your company’s receipts, making a digital copy of each for your record and saving it to a designated folder on your computer / IT network. These copies can be saved on a storage software such as the Cloud or Dropbox. Along with this it is advised that you create a physical copy that is kept on file at the office. Physical copies can be kept in categorised folders that are identified and organised according to importance and relevance for tax returns.
Keeping designated folders for tax season and organising your receipts according to appropriate categories such as business meetings, company travel, mileage, petrol and so forth is the perfect way to enhance your efficiency and organisation level in preparation for tax season. Keeping the original filed, a physical copy of the original filed as well as a digital copy filed will ensure that you have a number of channels to access the relevant information or receipts needed to complete your tax return and will also ensure that you do not lose track of your receipts and tax returns should the original or one of the copies go missing. Although many people will advise that keeping the original is a waste of time as you can just store digital copies nowadays, it is still vital to keep the original receipt filed for at least 6 years for precautionary purposes.
Together with this it is advised that you make a note on each receipt what the purpose of the receipt is for. For instance, should you take a client out for lunch during a business meeting or whilst hosting the client
for a conference, make a note on the top of the receipt stating the clients name, their business or organisations name and the reason for this receipt.
Another way to ensure you are properly prepared and organised as a business is to keep a log of all business activities.
Developing a calendar or excel spreadsheet that tracks and logs all business activities will guarantee a comprehensive and organised approach to tax season. Not only does this allow you to tie your receipts
and activities together, keeping yourself on track and up-to-date at all times but it also enables you to keep a history of business activities should there be a problem during your tax returns.
Although simple, these organisation tips can most certainly help and make a difference to your preparation and organisation for tax season. For more information or assistance when it comes to tax and accounting services visit our website today.