3 Common Reasons People Delay Their Tax Returns - What to Know
We all wish we can run away from that shoebox behind your closet filled with crumpled receipts. Alternately, we also wish that tax rules were a hundred times simpler than what they currently are.
As it is, many business owners end up procrastinating when it comes to addressing their taxes. Unfortunately, delaying the inevitable is much more harmful that you think. First, not only does delaying mean that more work must be done in a much shorter time, but any deductions you could have received will be immediately forgotten. You might even end up paying for penalties.
If you're a business owner, you might be guilty of these three common reasons for delaying tax returns:
1. Missing Receipts
Missing receipts are perhaps one of the most common reasons when it comes to why people procrastinate doing their tax returns.
How do you address this problem? Well, don't lose the receipts! Set up a system where all the receipts can be piled together, where you can easily find and access them. This can be a shoebox you’ve re-purposed into a receipt holder in your office or home, or it can be a filing system you’ve bought from an office supply shop. Make sure to organize the receipts by date for easy-access.
Another way to go about this is to snap a photo of every receipt you've collected and to store them in a special album for receipts. That way, you'll always have a digital copy of it on the phone and your computers using services such as Google Photos or Google Drive.
2. Lost Income Receipts
Like missing receipts, another common reason many people delay their tax returns is that they've lost their income receipts. While this is a legitimate thing that can happen, losing your records doesn't mean it is lost forever.
If you ever run into this situation, you can always contact the Australian Taxation Office. With their help, you'll be able to recover your records. If you aren't the business owner but rather the employee, you can still ask the employer for a Pay-As-You-Go copy.
3. Unaware of Deductions
Sometimes, people end up with no reason to complete their tax returns because they don't see any benefit in doing it. Unfortunately for them, they aren't aware of the deductions they could be enjoying, and now they're missing out.
While educating yourself is a good way to combat this from ever happening, hiring a professional tax agent to do all the tax-related tasks is a much easier way. Not only will they give expert advice, but they'll also help you with filling out forms and documents, overall giving you a much less stressful experience.
Other than the reasons we've shared with you so far, there are many others reasons people delay their tax returns, such as a lack of income for the year or earning lower than the tax threshold. That said, if you're a procrastinator yourself, then it’s time for a change. Not only are you missing out on possible deductions, but you're putting yourself in the path of penalties! That said, if you're way too busy with other tasks to give tax returns a second thought, then we highly recommend that you hire a professional accountant to do it for you!
Are you looking for a professional accountant on the Gold Coast for your business? We're here for you! Get in touch with us to find out what we can do to help you out.