Preparing for the End of Financial year

It’s nearing that time of the year again when you need to get your paperwork sorted ready to lodge your tax return. We have put together a brief list of things you will need to prepare to ensure you are ready for tax time.

Property investors

As a property investor it is important to ensure you have the following information;

• Know how much interest you have paid on your investment property loan.

o This information should be on your monthly bank statement or internet banking.

• Make sure your property manager has your correct email address so that you receive your EOFY statement promptly.

o If you don’t have a property manager, make sure you have a list of income and expenses clearly listed in a spreadsheet.

• Depreciation report or schedule.

• Keep electronic receipts of everything you have paid for your investment property – Council Rates, ESL and any repairs and maintenance, including major replacements.

Business owners

As a business owner it is important to ensure all your records are in order and up to date, including;

• Make sure your bookkeeping/accounting software data is up to date.

o Bank reconciliations are completed up until the 30 June.

o All invoices, receipts and bills are entered.

• Review all debtors and creditors, ensure it is correct. Are there any bad debts that cannot be retrieved anymore? (Discuss with an accountant before writing off bad debt).

• List all asset purchases throughout the financial year.

• Keep electronic receipts of everything you have paid for.

Individuals

As an individual, it is important to ensure you keep records for anything you want to claim. These may include the following;

• Ensure you have a logbook if you use your car for work.

• If you travel for work, make sure you keep receipts of everything you spent during the trip including meals and accommodation.

• If you work from home, you may need to provide information to your accountant regarding utilities paid throughout the year.

• Gather any donation receipts you have had throughout the year.

• Ensure you have your private health statement ready.

• Check interest you may have earned from your bank savings account.

If you need more information or help to prepare or lodge your tax return, contact the team at Bright Wealth. We can assist you with all your tax needs. Contact us today on 8324 2341.

Source: Risehighaccounting.com.au