Do you ever find yourself searching for expense receipts from 12 months
ago or wishing you had kept track of your donations? You are not alone! Each year we have countless clients who spend hours looking for lost receipts. That’s why we’ve come up with the perfect record keeping solution – and it’s simple!
Follow our easy plan and not only will tax time be a smoother process, but you may even find yourself with a bigger refund from the ATO.
Prepare Now
- Go out and grab ten folders. Use manila, accordion files, manila envelopes - whichever you prefer. Don’t use plastic sleeves though as the ink on the receipts can stick to them rendering your receipts useless.
- After you have your folders, label them - one for 2010, 2011 all the way to 2019. (Remember the ATO requires you to keep records for at least five years).
- Ensure you have this year’s folder somewhere visible. Don’t hide it away where you will forget about it, have it close on hand so you can put your receipts in as soon as you get them.
Easy steps
Now you are ready to prepare for next year’s tax return. We suggest following these easy steps:
- Collect and keep every relevant receipt.
a. When you pay for anything work related, keep your receipt and put it in your tax folder.
b. If you work from home (even only occasionally), keep your invoices for the telephone, power, water, internet and office supplies. And, be sure to keep a diary about how much time you spend working at home.
c. Have any expenses relating to an investment property? Keep the receipt.
d. Donate to charity? Put the receipt into your folder.
e. Driving for work purposes (not including to-and-from home), write down your dates and mileage in a logbook or diary.
- When you get home with any of the above receipts, put them into your tax folder.
- If you aren’t sure whether a receipt is deductable, keep it! Come tax time ask your Etax accountant for advice. Better to keep it and not use it than throw it out when you could have included it on your tax return.
- Don’t use a highlighter on your receipts - the ink used on some receipt paper fades remarkably fast if a highlighter is used on it. If you can't read your receipt, then you can't use it as part of your deduction claims.
Then, when tax time arrives, you simply open your tax folder for this year and all of the deductions that will boost your refund are in one easy place. Simple!
If you would like more information, contact us on admin@etax.com.au.
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