Why You Should Ace Your Accounts in April
Ok let’s be honest, finance isn’t everyone’s cup of tea. Business accounts are often something we push down the priority pile until it’s absolutely necessary to deal with (the mad rush in January – you know what I’m talking about!)
Have you ever found yourself in a total panic at the beginning of the year because you need to file your tax return? It’s understandable to feel stressed about it, but there’s a way to make it less of a headache. Filing your tax return in April rather than waiting until January can save you a lot of stress and anxiety!
Waiting until January means a year’s worth of subtle (or not so subtle) stress with it being on your mind, but you can avoid that by planning throughout the year. By planning and organising your finances regularly, you can save yourself from the last-minute rush, which can be a seriously daunting task, especially if you have to do it all at once.
Instead, set aside time either weekly or monthly to manage your accounts. Include photographing receipts and updating your spreadsheets or accounting software, reconciling payments, and managing your expenses. By doing this, you’ll keep track of your finances and make the process of filing your taxes a lot smoother – and sans stress!
And to make things even easier, set aside half a day at the end of your financial year to gather all your info. This could include any household bills you need to claim, any charity donations, bank statements, and anything else relevant to your tax return. Use a checklist to ensure you avoid missing anything.
By preparing in advance, you can make sure that you have all the necessary information and documentation, making the process of filing your taxes much more straightforward. Whether you have an accountant or do it yourself, getting everything together early will save you a lot of hassle in the long run.
You’re probably already using accounting software to manage your money, but if you’ve not yet moved your finances online, read more here about the long list of benefits of doing so.
Filing your tax return in April also means that you’ll know your tax liability as soon as possible. By filing early, you can avoid that last-minute panic and know whether you need to put money aside or whether you have enough funds saved to cover your tax. This will bring you peace of mind and help you plan your finances better.
And what if you’re worried about having the funds to pay your taxes? That’s where putting money aside throughout the year comes in super handy. By setting up a separate account to keep track of your tax funds and depositing a portion of your income into it each month, you can ensure that you have the funds ready when it’s time to pay your taxes. This will help you avoid being caught off guard and scrambling to find the funds at the last minute. Read more about the benefits of having a separate business bank account here.
Remember, being organised and prepared can make all the difference when it comes to tax season. So, don’t wait until the last minute! Start planning and organising your finances today.