3 Mistakes Businesses Make With Their Taxes – Perth Accounting

Every year around tax time, we come across mistakes businesses make that end up costing them both time and money.

So, today we are looking at three financial mistakes businesses should avoid and we hope this helps you and your business throughout the year and most importantly, when it’s time to file your taxes.

Keeping Records

It is true that documenting every financial detail and keeping records may take time and effort. That said, one of the most common mistakes that typically costs businesses their income or a better tax return is the failing of keeping good records.

The good news is, these days there are a number of apps in place that can take care of it for you.

A number of apps such as receipt bank, all you need to do is take photos of receipts and the system stores it for you. That way, when preparing for tax time, you already have all your receipts and documentation in one place.

Separate Accounts

Creating a separate bank account for your business can save you a lot of time and money. We strongly advise, whether it is a side hustle or your full-time business, create a spereate account and use a separate card. This way you know that everything spent on that card is for your business and you don’t need to spend time later on trying to figure out what expense was business related and what wasn’t.

If you have an accountant doing your taxes, using a separate account will also ensure their time dealing with your tax will be kept to a minimum and as a result will be able to charge you less.

Be proactive and ask questions

When it comes to tax time, before the end of financial year go and see an accountant.  Make sure you dedicate enough time and effort to understand where everything sits and don’t be afraid to ask questions. There are many strategies in place that your accountant will know about and will be able to advise on.

The most common mistake is not getting professional advice that will save you money.

If you have any accounting or financial questions for your business, feel free to reach out to us at Eventum Consulting and we would be honoured to help.