My Blog

6 Tax Mistakes to Avoid!

by admin on April 28, 2015 Comments Off

Here are the top 6 tax mistakes that you should to avoid:

  1. Poor practices of record keeping
  • make sure that you have labeled your filing and bookkeeping system clearly
  • make sure not to mix your expense for personal with business matters
  • make sure that you save your invoices and receipts for future reference
  • you can use online accounting software helpful tools like evernote, receipt bank and dropbox to save all your scanned documents

 

  1. You don’t need to pay for an accountant
  • you can call your local tax help center for any assistance and its absolutely for free
  • pick up your phone and call for a quote
  • you can ask your friends if they can refer you to an accountant which services are for free or costs less

 

  1. Failure to use cloud accounting
  • discard old computer software that will require manual data entry
  •  you can use online accounting software applications like Xero accounting, Freshbooks or Quickbooks
  • to save data entry, you can authorize your bank for feeds
  • pay for a registered Accounting Services provider to save more expense
  • paying for a proper bookkeeping training can also be a good investment for your bookkeeper

 

  1. Claiming tax on all of your expenses
  • tax rules are subject according to a certain country’s law, you can check their website for more information
  • be vigilant because most of the foreign companies might not be paying taxes
  • all expenses may differ in tax amounts may it be for car registration, utilities or others

 

  1. Failure to claim all business expenses
  • it is very important for you to keep a diary of all the necessary financial activities in the company such as events and meetings
  • if receipts are not to be found, you can photograph fuel, parking and other expenses
  • make sure that all business receipts are stored in one spot
  • using smart phones and applications can help save expenses

 

  1. Unable to pay bills on time
  • if you want to make online payments, better set the date in advance
  • using a paper diary and other electronic documents can be very helpful
  • a reminder on your phone are also perfect, especially if bills are due
  • organize your filing system at the start of the day to avoid misplacement of important documents
  • you can find what’s the best method for you anytime and anywhere
admin6 Tax Mistakes to Avoid!