Getting a cool tax returnGetting a cool tax return

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Getting a cool tax return

For many years I couldn't work out how my co-workers seem to be getting these really cool tax returns, which let them go on holidays to Bali, where I seem to get tax returns that let me go to the local fast food joint if I was lucky! Since I met my girlfriend I started to go to her tax accountant and I finally understand how it all works. There are so many easy deductions that I can claim now, which is going to help me head to Thailand this year! This site has some of the tips I have learnt to help you maximise your return this year.

Important Accounting Tips Small Businesses Should Follow From Day One

When managing a small business, it is critical that you get your accounting act together from the very start so you can have a good chance to grow your business. No matter how small the amount of money involved, it is always good to keep track of all your incomes, proceeds, expenses, and costs, and that's what proper business accounting helps you achieve.

Here are some accounting tips.

Budget for every expenditure

Spending is part of transacting business, but you should always plan for it. Whenever you can, carefully plan how you will spend the available funds and be sure to spend according to the plan. Business spending takes several forms including rental expenses, salaries and wages, utilities, purchases, and so on. Set aside funds for all anticipated expenses so that you are not caught unawares when it is time to spend. It is also a smart move for you to keep records of daily, weekly, or monthly business expenses so you can budget for the days ahead.

There will be unforeseen expenses too, of course. Thus, it is important that you set aside some portion of your budget for unanticipated expenses.

Make sure to collect what is owed to you

Seeing a huge figure in the accounts receivables column of your accounting books is a desirable thing, but it is only part of the story – the amount doesn't really matter until it is paid up. Don't let customers get away with not settling debts. Always insist on getting paid for past orders before extending any more credit. How efficiently you collect the receivables is crucial in keeping your business above the water.

Meet the taxman's deadlines

All legitimate businesses operate within a legal framework, and each business is expected to comply with the laws and regulations existing in the environment in which it operates. Most small businesses are expected to meet at least two deadlines – the first for filing tax returns and the second for remitting the calculated tax bill. Should you fail to meet any of these deadlines, fines and penalties can accumulate fast. In extreme situations, a business can even be closed down by the relevant tax authorities. Make sure you do not miss any of those deadlines so as to avoid rubbing shoulders with the taxman. If you file tax returns and settle the associated tax bill on time, you can even request for refunds. This way, you can reduce your tax bill and increase your profits. 

For assistance, talk to an accountant.