There are diverse ways of keeping things, but certainly not diverse when it comes to files and other lifetime documents. Some of us don’t know how important our Education documents and work documents can be pose to us in the future.
In this article, I will work you through some areas of thoughts how you can protect your vital documents, especially at demand during tax needs.
To avoid future challenges, please cross the underlying ways to protect your vital documents for tax use.
Ways to protect your vital documents if you’re a small business owner
Running your own small business is no small task. And on top of all your other responsibilities and tasks, you need to make sure that you stay on top of your finances. This is paramount, and it’s also very important to keep your personal expenses separated from your business finances.
Managing your small business’s finances doesn’t have to be a Herculean task. It can be simple, easy and straightforward, so long as you’re organised.
For other related article, please click Accounting and Bookkeeping tips for small business owners
1. Develop and maintain an easy-to-use system
This is especially important if other people are also going to be using this system. You don’t want your filing system to be a cause for stress!
You can easily categorise your business documents into such categories as, income, expenses, and tax. You can organise these files any which way you want – with a colour-coded system, alphabetically, by date, or any other way you find works best for you. Just make sure that it will make sense to other people who also need to use this filing system.
Once you have something to file, it’s just a simple matter of placing it in the correct file.
For old files that you don’t need right now, but may in the future, you can store them in a file box. You don’t even need to keep them on site – you can save space by storing them in a storage centre.
If your current filing system is a bit of a shambles, now is the time to clean it up!
2. Invest in Accounting software
While it’s good to keep hard copies of your important documents, it’s also a good idea to back them up.
Accounting software like QuickBooks and Wave Accounting can help you manage your important files ready for tax time. You can store everything in one place, which means it will be easy to find and access. Software like Wave Accounting won’t even cost you anything – it’s free to use.
3. Prepare in advance for EOFY
Don’t leave it to the last minute – start preparing for the EOFY in advance so you’re not running around like crazy on June 30th trying to get everything done.
Make sure you have all the right information you need before the end of financial year, and if you’re not 100% certain of what you need, make an appointment to see your Accountant.
Now let us look out briefly some other ends for keeping your personal files organized
More ways for keeping your personal files organized
One of the best things about tax time is looking forward to a tax refund (if you’re entitled, of course!). So if you want to make the process of filing your tax as painless as possible, follow our top 3 simple tips for organising your personal files ready for tax time.
1. Keep your physical files together in a place where they’re easy to access
Don’t chuck them in a box under the house or up in the attic. Place them somewhere you won’t forget them, and make sure it’s free of damp and mould. This way, you won’t be scrambling trying to find them come tax time, and it will be easier to add new documents to your collection, instead of just tossing them in a drawer where they could get forgotten.
2. Separate your documents into different categories
If you don’t keep your documents separated properly, then you won’t be able to find what you’re looking for when you need it – simple as that! Use a system that works for you; labelling with different colours, numbers or different names can help you differentiate different categories. Make different categories for receipts, deductible donations, work-related expenses, educational courses, and so on.
3. Keep things neat and tidy
If you haven’t already, it’s a good idea to back up your most important documents onto your computer or a cloud. It’s also a good way to cut down on paper if you’re the kind of person who prefers soft over hard copies. But be sure to have some security measures in place just in case your computer crashes, and make sure to label everything appropriately.
