Time to walk the tax tightrope again

Money moves the world and taxes are part of that mechanism. As a businessman or a woman, that also makes you a part of it, whether you like it or not.

So how do you make sure you pay the right amount of tax? Very little gets you into hot water; too much is, well, too much.

Get a good accountant. Much more than doing numerical calculations, good accountants know how taxes work, what is allowed and what is not. It is his area of ​​expertise to explain all of this to you in a language you understand, freeing up more time for you to do business. (You don’t do your own books, do you? What for? Granted, it may cost less, but how much value do you give your time? Consider that, and DIY bookkeeping starts to look expensive. Especially if you make mistakes. )

Data, data, data. No matter how good your accountant is, he can’t do an adequate job if his record keeping is sloppy. That’s where expense management software comes in, putting it in the palm of your hand as a means of accurate record keeping that will ensure all your numbers are there and will stand up to scrutiny. These days, online expense management software is the way to go; accessible anywhere you have a WiFi signal, it means there can never be an excuse not to record an expense. You’ll be glad you came at the end of the year.

Do not be late. Even if your tax records are accurate down to the penny, you’ll still pay a penalty if you’re late. Frankly, there is no excuse. Take the UK tax system, for example. Personal tax is based on a tax year ending in early April, however, the due date for payments is late January of the following year. How much time do you need? An increasing number of people are filing their tax returns online on Christmas Day. Some of them must really dislike their family, don’t you think?

Talk to the accountant. Understand the best way to collate the data you are collecting. Making the accountant’s job easier will mean your accounts can be sorted out faster and possibly more cheaply. Not having this conversation may mean that you are recording expenses incorrectly, which is a waste of time for you and for him.

Get everyone on board. Expense tracking is a team game and not an individual sport. Any company employee who has the authority to spend money should also have a responsibility to record it accurately, and it’s their job, as the business owner, to make sure they do. This is another area where a good expense management software qualifies for you, as in addition to recording numbers, it will also define expense policies. On top of that, it will hopefully work on a smartphone, so there can be no excuse not to have all the accurate numbers at hand with the flick of a thumb.

More than numbers. And speaking of policies, online expense management software offers other benefits, like eliminating fraud, for example. Take mileage claims as an example. Using a paper-based system, an employee can inflate the actual mileage of a trip by a few miles, increasing the expense claim and, as a result, the cost to your business. One feature of good online expense management software is that it can use GPS to record distances traveled, taking the temptation out of the employee’s way and making the transaction fair for everyone involved.

Keep money separate. Company and personal money should be like oil and water: they should not mix. Unfortunately, there are circumstances where oil and water mix, and separating them is a hell of a job. The same goes for personal and corporate money, so in all cases, it’s best not to mix them in the first place. When it comes to money, expense management software gives you an advantage because it can be associated with a specific credit card, and a company one, meaning there will always be a clear distinction between what is business and what is business. what is not.