When the tax deadline approaches, do you end up searching all over the place in order to collect your deduction receipts from weeks/ months earlier? If yes, don’t worry – you are not alone in this. And, in order to avoid such a hassle, seek professional financial assistance from the most experienced accountants in the Brisbane area – Syndeo Group – an accounting firm.
Namely, according to research, one out of two Australians fail to get about $1000 in tax rebates every year due to lost receipts. So, if you don’t want to miss $1000 of deductions this year, you’d better manage your receipts in time. But, that’s not all! On average, taxpayers spend a bit more than 2 hours searching for lost receipts.
For that reason, we provide you with a brief outline of the best easy tips to help you manage your receipts and boost your tax refund this year. So, let’s see how you can save time and get a bigger tax refund!
Essentials You Need
First, you need to grab ten folders – whichever you prefer: manila, accordion files, manila envelopes. But, remember not to use plastic sleeves since the receipts ink usually sticks to them.
Then, in accordance with the ATO requirements, you need to keep records for at least five years earlier. Thus, make sure you have one folder for each year and label them accordingly.
Finally, make sure that this year’s folder is put somewhere easily noticeable. Why? The truth is, if the folder isn’t visible, you’d probably forget where you’ve put it. So, have it close on hand!
Tips to Help You Manage Your Receipts
- Keep All Relevant Receipts
Any accountant will tell you to keep receipts from everything that is work-related. Once you get to the office, put them in your tax folder. But, do you know exactly which receipts you can include in your claim? One of the benefits of hiring an accountant is that you will get all the information needed about this topic, too.
So, in brief, here’s what people usually forget to claim even though they have the right to do so:
- To begin with, don’t forget about your expenses related to investment properties – you should keep them, too.
- Similarly, if you have donated money to a charity, you can also claim that for a tax refund.
- Also, if you’ve been driving for work purposes, write down the dates and mileage in a logbook, but exclude the to-and-from home driving.
- And, if you sometimes work from home, keep records and the invoices for the power, water, telephone, and internet.
- Not Sure if It’s Deductible – Keep It!
Sometimes, you won’t be sure about whether that specific receipt is deductible or not. In this case, the best thing to do is to keep it and then discuss with your accountant whether you can include it in your claim it or not. Imagine throwing it away and then finding out that you could have claimed it and that you’ve missed out a decent amount of money. So, it’s better to just keep all the receipts and have a tax agent!
- Don’t Damage Your Receipts
It is true that the ink on your receipts fades away over time. But, there are certain tricks you can do and things to avoid in order to keep them secure. First, as we already mentioned, carefully choose the tax folder always having in mind the material it is made of. Second, don’t use highlighters on your receipts because they can make the ink disappear even sooner. And, if the receipt isn’t readable, you cannot use it in your deduction claims.
Now that you know all the basic tips for managing your receipts, it’s time to contact Syndeo Group and make sure you get the most out of this year’s tax deduction.