It’s April 2024 and the 2024 financial year is over. You’ve spent the past few months slaving over your receipts or chasing your accountant to make sure your taxes are filed correctly and on time. You’re breathing a sigh of relief and putting it aside in your brain to deal with this time next year. But do you really want to go through that stress again? Tax season can be a daunting time for many, but with the right approach, you can navigate it smoothly and stress-free.
Here are some tips to help you stay on top of your 2025 tax year, so you can be celebrating before you’ve even filed them.
Start Early
Don’t wait until the last minute to gather your tax documents and start preparing your return. Begin organizing your paperwork as soon as possible to avoid the stress of rushing to meet deadlines. Make sure as you enter the new financial year, you are keeping track of all of your receipts as you collect them. Ensure you can account for everything as you go along month by month. Dealing with it as you go is much easier than having to do a years worth all at once. Create a system for organizing your tax documents, whether it’s using folders, digital software, or apps. Keep track of receipts, invoices, and important documents throughout the year to make tax preparation easier.
Understand Changes in Tax Laws
Don’t bury your head in the sand until you have to learn about it. Tax laws can change from year to year, so it’s essential to stay informed about any updates or revisions that may affect your tax situation. Consider consulting with a tax professional or accountant to ensure you’re taking advantage of all available deductions and credits. You can check websites such as the Government website to keep up to date.
Utilize Technology and Professionals
Take advantage of tax software or online filing services to simplify the process of preparing and filing your taxes. These tools can help automate calculations, reduce errors, and streamline the overall filing process. If your tax situation is complex or you’re feeling overwhelmed, don’t hesitate to seek help from a tax professional or accountant. They can provide expert guidance, ensure accuracy, and help maximize your tax savings.
Plan for the Future
If you haven’t already, use the new financial year as an opportunity to review your financial goals and plan for the future. Consider setting aside money for savings, investments, and explore strategies to optimize your financial health in the long term.
Establish a Tax Calendar
Create a tax calendar outlining important deadlines, such as quarterly estimated tax payments, tax filing deadlines, and any relevant tax-related tasks. Referencing this calendar regularly will help you stay organized and ensure you meet all tax obligations on time, without getting surprised by unexpected actions.
Tax season will always be stressful, but by being prepared as you enter in FY25 (Financial Year 2025), you can minimise this stress for yourself, your business, and your accountant!
Trust us, they’ll thank you for it later on down the line!
