Making the shift from having your taxes organised for you to having to calculate them yourself can be daunting. There’s a lot to learn when it comes to taxes and expenses. If you’re not on the ball, you can end up making errors resulting in costly fines. For those have troubles with their taxes, here are a few ways to lessen the burden.
Hire an accountant
The most certain way to ensure that your books are all calculated correctly is to hire a professional to do it for you. Hiring an accountant does cost money on top, but it can save a lot of hassle, freeing up time for you to focus on your work. Chartered accountants are generally more reliable as they have to go through rigorous screening and training, however they are more costly. When choosing an accountant, consider their previous history of clients and whether they relate to you and your trade. Having someone that knows your type of business inside out can result in more reliable bookkeeping.
Digitise your bookkeeping
There are various software programmes available such as Quickbooks that can speed up the accountancy process. Such software can automatically calculate your taxes and expenses, as well as laying out all information in a clear and presentable way – useful if you ever have an inspection. You can also get accountancy software that is available as an app allowing you to carry out book-keeping on the go. Such software will cost a little money to download, but could be much more effective than using spreadsheets or the archaic pen and paper approach.
Get legal help
If you do happen to make a slip-up with your bookkeeping, there are places to go for legal help. You’ll find information on arranging a tax resolution and lawyers at New York’s Mackay, Caswell and Callahan. Such attorneys can help you persuade the tax office that your error was a genuine miscalculation and not an attempt to illegally lower your tax. Legal advisors can be handy to have along the way, especially for big financial decisions such as taking out a mortgage on a commercial property or deciding to sell your business.
The best way to fully get to grips with your taxes is to do your own personal research. There are many self-help books that you can buy to help you with your own accountancy. You can buy these books cheaply second-hand online – just make sure to check the date to ensure the advice isn’t completely outdated. There are also many free sources online including blogs and vlogs that can give you financial advice on when and how to handle your taxes.
Such an approach is especially recommended if you’re self-employed but on a budget and can’t afford to splash out on an accountant or advanced software. Doing your own book-keeping without specialist software will be more time-consuming, so set yourself a set period each week to put your accounts in order.