Tax returns are not a simple thing, and not all taxpayers are aware of every rule and regulation which applies to them. Even if they are aware of them, they may not be able to follow them, or may not know what consequences will result from breaking the rules. Taxes are complicated for most people, but for accountants, it’s a living. With the tax deadline fast approaching, it’s more important than ever to know that you’re doing everything by the book. An accountant available at Royston Parkin can help you take care of your accounts so that you can get your return as quickly as possible, and it can also make sure you don’t make any tax mistakes that could be costly. Here are few points jotted down to help you to avoid mistakes.
1.Reconcile your accounts
We have established that accountancy isn’t for the faint-hearted, but many people still have the misconception that accountants do all the hard work. The hard work comes on reconciliation day. Reconciliation is the process of checking all the transactions recorded in your financial records against your bank statements. The bank statements can be accessed online if you use an online bank, or they can be provided in paper format by your financial institution. Reconciliation is important because it highlights any discrepancies between the two sets of records so that you can quickly make any necessary adjustments to your records, before submitting them to your accountant.
2.Organize your tax documents
Tax time is coming up fast. To help you feel prepared and organized, we’re sharing some tips for organizing your tax documents. Having all your receipts and documents in one place will help make your accountant’s job easier. If you have a good system for keeping your receipts, your accountant can help you organize your other financial documents. You may also want to consider using tax preparation software, so you don’t have to worry about organizing everything yourself.
3.Take advantage of free tax software
Online tax software has its place and it is not in filing your taxes. This is one of the most important financial decisions you will make all year and it should not be done hastily without the help of a tax professional. Do not make the common mistake of filing your taxes yourself; it is not worth the risk. The biggest threat of making this mistake is the chance of being audited. You can easily do your taxes incorrectly, leaving yourself open to an audit, and this is something you want to avoid at all costs.
4.Keep Records
If you are in business, you may need to be able to keep a record of tax. This should include any expenses that can be deducted against your income, as well as any income you receive. An accountant can help you with this, which will reduce the chance of mistakes being made. They will also be able to ensure that you are staying within the law and that you are not paying more tax than is necessary. If you do not keep a record of your tax, you may end up paying more than you have to, or you could end up in trouble with the tax authorities. Keeping a record of your tax is not difficult, you just need to know how to do it.