To ensure efficient tax-paying, organization is key. Here are some tips.

Keep Invoices for All Purchases

You can claim on virtually all purchases that relate to your business. This includes journals, reference books, training, and professional subscriptions, as well as equipment, including software, printers, and computers. You can also claim for the expense associated with equipping your office, including bookcases, chairs, desks, and alike. However, it is important to ensure that you have invoices for all purchases and that they have your company name on them.

Consider Online Accounting Software

If you take a look on the Internet, you will see that there are many different accounting software packages to choose from. You are advised to invest in one of these. While you may have to spend a little bit of money initially, you will have hours of time and consequently a lot of money. You will be able to automate certain processes, and you can access your records at any time, in any place. You will also get greater clarity regarding finances at your business, and you will be able to compile reports whenever necessary. When choosing accounting software, consider the following:

• Ease-of-use – The last thing you want is an accounting program that is extremely difficult to integrate and get to terms with. OnPay Solutions is a great example.
• Compatibility – Look for software that works on all devices. We tend to assume that this is the case for all software nowadays, but it is better to be safe than sorry.
• Scalability – You want an accounting solution that is going to grow as your business grows, not something that is going to hold you back.
• Features – Take a look at the different features that are included with the software. Make sure they are features that you can see yourself using and that will benefit your business, whether now or in the future.
• Price – Price is a vital factor when making any type of business purchase. You don’t need to spend a fortune on accounting software. Nevertheless, do not simply search for the cheapest software you can find. This could cost you more money in the long run if it is of a poor quality or not right for your business.
• Reviews – The final tip is to make sure you read reviews that have been left by those that have already purchased and used the software. If the system has a bad reputation, this is something you should be able to pick up on fairly easy, and you will know to look elsewhere.

Set Aside Future Tax Liabilities

The last thing you want is to come unstuck when it comes to tax deadline time, which is why it is highly recommended that you set aside future tax liabilities. It is a good idea to consider opening up a separate deposit account just for this purpose.

Know Your Industry

Knowing your industry is important. However, this is not only in terms of VAT. You should also make sure you are engaged with your trade association or body. Read their newsletters and attend their events. You will find that a lot of industries have special allowances or dispensations, for example, uniform allowances. A lot of business owners aren’t aware of these because they do not keep up to date with their trade union or body. They are there on your side, so it is wise to use them.