July 7 marks the deadline for income tax submissions for individuals and businesses alike. Are you ready to file your business taxes? It may still be April, but you can start working on your taxes early to prevent complications down the road. For an easier time with your taxes, you can consider the following practices.
Get an Expert
Do you have an accountant? It may be time for you to hire small business accounting services here in Auckland. An accounting firm can show you what you can claim and what you cannot claim. They can teach you the taxes you need to pay for.
Best of all, you can deduct all the fees you pay your accountant from your taxes.
Know your Deductibles
Speaking of deductibles, you can go to the Inland Revenue Department’s website to find the business expenses you can claim and deduct from your taxes.
These business expenses include mileage rate for using your own vehicle for your business, travel expenses, using your home for business, employee or client entertainment expenses, and much more. Again, accounting services can help you with this.
Write, Write, Write
Still on the subject of claims and deductibles, you best write all of your expenses down. When the IRD challenges your claim, since you have written your expenses down, you can prove that you actually spent on such costs.
Although most Kiwis tend to keep everything in their heads, you can break away from the typical Kiwi psyche and actually write down your expenses.
Besides your expenses, you can consider your fixed assets, sell surplus, and write off other assets, including ones thrown out or lost. You can also review and update your inventory, throw away unusable ones, and write off obsolete inventory.
Finally, you can also review your overdue receivables, write-off bad debts, and optimise your invoicing for a more efficient administrative process.
With the practices above, you can definitely file your taxes on time without any errors while maximising your deductibles.