As your business grows, your responsibilities grow, too. One of the most hectic seasons you have to think about is tax season. You have financial documents to submit, financial records to verify, and bundles of receipts to go through.
If you want tax filing and eCommerce accounting to be easier to manage, here are some valuable tips that can help you.
1. Record All of Your Income and Expenses Diligently
One of the best ways to make tax season easy on you is by recording all of your income and expenses diligently.
The minute you buy something for the business, find employees or help make a sale, your itemised income and expense records should follow. It’s a good idea to create a filing system that makes it easy to track all of your business income and expenses.
We recommend organising your receipts, income, and expense records into separate folders. That way, they’re easy to find.
2. Regularly Reconcile Your Accounts
Since you live in the fast-changing world of business and technology, it’s not uncommon to find that your company’s bookkeeping systems are not in sync with your company’s accounts. This may lead to confusion and incorrect figures when tax season comes around.
An excellent way to clear up this confusion is to reconcile your accounts regularly.
Reconciliation is reviewing your records with your bank accounts, credit card statements, and other financial documents to ensure the figures for your income and expenses match. If reconciliation is done regularly, you’re less likely to make a mistake when tax season comes around.
3. Integrate Your Accounting Software to Your Online Store
With the growing popularity of online businesses, it’s becoming increasingly important for small business owners to have an online presence. When you have an online store, you must have accounting software integrated with your online store. You need that to make tax season easy on you.
That way, whenever you sell something on your website, the accounting software automatically updates the figures of your income and expenses. If you have accounting software integrated with your online store, you can quickly generate reports for your income and expenses. And as your tax filing date nears, you can produce reports without taking too much time.
4. Keep Your Business Accounts Separate from Your Personal Accounts
As an entrepreneur, there’s a good chance that you’re managing more than one bank account. Make sure that your business money is accounted for in a separate account. In addition to having individual bank accounts, you should also have a different credit card. That way, you can easily separate your personal expenses from your business expenses.
5. Don’t Forget Your Tax Deadlines
It’s a good idea to familiarise yourself with your tax deadlines and plan out your tax season. The best way to do this is to hire a good eCommerce accountant. A good tax accountant understands tax laws, suggest tax strategies and help you make sure your taxes are filed correctly.
Now that you know what you can do to make tax season easier on you, it’s time to get started. If you have business accounting problems, you can contact an eCommerce business advisor to help you.
If you need a taxation accountant in Australia, let our team at The ECommerce Accountant help you. We will ensure your business is kept out of trouble through accounting and compliance support, including accounting software implementation and training. Contact us today to learn more.