- Keep organized records: Maintaining accurate and organized financial records is crucial for tax purposes. Make sure to keep track of all income and expenses throughout the year and have all necessary source documents.
- Take advantage of allowable deductions: Tax deductions can help reduce your tax payable and lower your overall tax. Make sure to research and take advantage of any deductions you may be eligible for.
- Plan for taxes: It's important to plan for taxes and not wait until the last minute to prepare. Consider working with a tax advisor to help you create a tax planning strategy that maximizes your deductions and minimizes your tax liability.
- Stay up to date with tax laws: Tax laws frequently change every budget cycle, so it's important to stay updated with any changes that may impact you or your business. Consider working with a tax advisor or attending tax seminars to stay informed.
- Don't ignore small tax liabilities: Even small tax liabilities can add up over time and lead to penalties and interest charges. Make sure to check your tax ledger statement and ensure you pay all taxes owed on time to avoid additional interest.
- Keep accurate employee records: If you have employees, it's important to keep accurate employee records for tax purposes. This includes information on their salaries, wages, benefits, and taxes withheld.
- Consider using simple accounting software or MS Excel or EFRIS: Computerised records help to simplify the tax preparation and filing process and may also help you receive any refunds or credits much faster.?
Desire Reuben Kamanzi is a Certified Accountant with extensive experience in Tax Advisory Services.
