by Amanda Hoffmann | Featured Contributor
There are six common tax mistakes I see as a bookkeeper on a regular basis.
They are easy to implement and will have your finances in top shape for tax time!
1. Poor Record Keeping Practices
- Ensure you have a clearly labelled filing system
- Do not mix your personal expenses with your business
- Save all of your receipts and invoices
- Use online tools like Dropbox, Receipt-Bank or evernote to scan and save all your documents.
2. Pay for an Accountant you do not need
- Can the tax help center in your country assist you for FREE?
- Pick up the phone and call around for a quote
- Ask a bookkeeper who they use
3. Fail to use Cloud Accounting
- Ditch the clunky desktop software that requires manual data entry
- Use online software program options like Quickbooks, Xero or Freshbooks
- Authorise your bank feeds to save data entry
- Pay a qualified and registered bookkeepre to set it up for you
- Pay for training so that you can do your own bookkeeping
4. Claim tax on all expenses
- Depending on your country, these rules will be different so check their webpage for details
- Be aware that foreign companies may not pay tax (Google & facebook advertising)
- Car registration, utilities and other expenses may vary in tax amounts
5. Fail to claim ALL business expenses
- Keep a diary of all business events / meetings
- Photograph fuel, parking and other loose receipts
- Ensure you file all business receipts in one spot
- Use your phone and apps to save expenses
6. Forget to pay on time
- Forward date your online payments
- Keep a electronic or paper diary
- Create a reminder on your phone when bills are due
- Organize a filing system that you refer to at the start of each day
- Find what works for you and do it every time!
There is no fixed rule on keeping your business records on hand and available.
However, the six points listed above will certainly put you on the right track and save you an incredible amount of stress, should you get a tax audit.
Amanda Hoffmann – Sensational Entrepreneur, Bookkeeper Extraordinaire and loves Social Media
Hi, I’m Amanda Hoffmann and live in Brisbane, Australia. I am passionate about business and social media. I currently juggle being a mother of four school-aged children and run three businesses in completely different fields. While challenging, I believe they keep me thinking outside of the box. I have always loved being busy and I believe it is a mixture of my “can do” attitude and loving life that allows me to accomplish so much. Oh, not liking to sleep much certainly does help!
I started managing my first business over 18 years ago but sold it when I decided to start a family. I was unable to envision at the time how I could run a business and still be a dedicated mother. Since I now run three businesses and have a large family, I have found being organised and prioritising is the secret to success.
What are my businesses you might ask? My Office Books Virtual Bookkeeping, Kidd House Accommodation specialising in fully furnished accommodation for both students and professionals and Co-Founder of a new Social Media start-up called The Likeability Company helping SME’s get the most out of using social media and building communities.
I would like to share my experience in small business and answer any questions you might have regarding office organisation, cloud technology and share my experience in property investment.
I personally am fascinated by social media, particularly the fast pace of twitter and exploring the world of blogging. I invite you share my journey and get to know each other.