If you’re feeling stressed about organising your taxes and getting your paperwork ready for the accountant, you’re not alone. The pressure of looming deadlines and the scramble to find all your receipts and invoices can be overwhelming. But fear not, we’ve got some simple steps to help you get organized and reduce the time spent on processing your paperwork.
Step 1: Sort Your Documents
Let’s start by taking that shoebox or envelope full of receipts and invoices and dumping its contents out. Separate everything into piles based on the month they belong to. This basic sorting step lays the groundwork for the rest of the process.
Step 2: Choose Your Approach
Next, consider how automated your bookkeeping system is. If your software automatically syncs receipts, all you need to do is file each document in a physical folder for future reference, especially for potential tax office audits. For added assurance, you can cross-check each receipt in your system and mark it off to confirm its accuracy.
If you’re not using automated software, you can create a simple spreadsheet using tools like Excel. Create a new worksheet for each month and enter details like transaction date, supplier name, item purchased, transaction amount, GST (if applicable), and the expense account to allocate it to.
Step 3: Consolidate Your Records
While sorting and recording transactions may take some time, it gives you a clear overview of your expenses for the year. Additionally, gather your bank statements, credit card statements for business purchases, and loan statements for any business-related loans or equipment.
If you’re using accounting software, most of this information should already be available. If not, consider handing over your organised records to an accountant or, preferably, a bookkeeper for further assistance.
In conclusion
Organising your receipts and expenses doesn’t have to be daunting. By following these basic steps and utilising digital tools or professional help, you can streamline your tax preparation process and gain better control over your finances. Need more tips or assistance with bookkeeping, feel free to reach out to Forthright and we’ll be happy to help!
