Keeping your tax documents organised throughout the year doesn’t just save you time — it can also help you maximise your deductions and reduce stress when it’s time to lodge your tax return. Here are some practical, easy-to-implement tips to help you stay on top of your record-keeping all year round:
Separate your finances:
Use different bank accounts for personal and business transactions. This makes it easier to track business income and expenses and gives you a clearer picture of your cash flow.
Use accounting software:
Tools like Xero can automate a lot of your bookkeeping, helping you stay organised without the headache. They also make it easy to generate reports at tax time.
Go digital with your records:
Scan or photograph receipts and store them in the cloud using apps like Hubdoc, Google Drive, or Dropbox. If you prefer paper, use clearly labelled folders sorted by category or month.
Record all income sources:
Keep a log of everything you earn, not just your main job. This includes freelance work, Centrelink payments, rental income, investments, and side hustles.
Track vehicle and travel expenses:
If you use your car for work, maintain a logbook or diary. Note the date, kilometres travelled, and purpose of each trip — this documentation supports your deduction claims.
Keep asset transaction records:
If you’ve bought or sold shares, property, or other assets, keep all related documents. These are essential for calculating capital gains or losses at tax time.
Organise rental property expenses:
Store receipts and statements related to property management, repairs, interest on loans, and other expenses in one dedicated place.
Communicate with your accountant:
Don’t wait until June. If your financial situation changes — such as a new job, investment, or change in residency — check in with your tax agent for tailored advice.
A little effort now, a big payoff later:
Good record-keeping doesn’t have to be complicated. With some simple systems in place, you’ll breeze through tax time, feel more in control, and potentially get a better result on your return.
