Everyone is busy. While we appreciate gathering and organising financial records can be a daunting task, we will share with you in this article the benefits and advantages of sending us your information as soon as possible.
The date you provide your accountant with your tax records and information does not have to align with when you lodge your tax return with the Australian Taxation Office (ATO).
Cash flow management
A key advantage of promptly providing your records to your accountant is the ability to be proactive in managing your cash flow. As the saying goes, knowledge is power, and advanced knowledge of a tax bill means you can manage your funds to make the payment less of a burden.
Equally, your situation and records could result in a tax refund from additional deductions, credits, and strategies that can help reduce your tax liability. Allowing time to source and substantiate this information is valuable. The result could be the decision to lodge your tax return before the deadline to receive the refund earlier.
Tax Planning typically happens well before any looming tax returns. We encourage tax planning as the result can lead to significant financial gains from making strategic financial decisions such as adjusting investments, accelerating or delaying income, and exploring tax-efficient savings.
Shows strong financial management
We see firsthand the individuals and organisations who are earlier to provide their tax records, are more likely to have a healthy awareness of their financial position, their balance sheet, profit and loss and where it is headed. Strong financial management enables income tracking, expense management, and identification of trends to be able to optimise success.
Reduced Stress and Improved Accuracy
Anything last minute can lead to stress and anxiety with rushing to gather tax data, increased likelihood of making errors, and overlooking details; resulting in an omission on your tax return. Omissions might result in penalties or a lost opportunity to reduce tax liability. With advanced planning, often your accountant can allocate time with you to implement improved systems and processes to speed up future access to data including enabling of bank data feeds or third party authority access arrangements to information.
Efficient Use of Accounting Resources
Timely submission allows your accountant to allocate sufficient time and resources to your situation and ensure a more thorough and accurate review. With your accountant’s full attention and expertise, you are more likely to receive timely responses to questions and a more personalised service.
Start now, organise your tax records and send them to your accountant. We encourage everyone to benefit from the advantages of acting early by taking the initiative with their financial records today.