The tax time for 2022 is gone but for the tax time for 2023 is yet to come. To avoid hassles and last minute stress, try managing your receipts and making records of transactions done your foremost priority. By doing this, you won’t have to search for receipts all over the place to claim deductions.

As per a study conducted by the Commonwealth Bank, it was found that the lost receipts cost one in two Australians an average of around $1000 in tax rebates every year. To avoid losing dollars in tax deductions, it’s better to manage your receipts on time.

In addition to costs, taxpayers spend an average of two hours in search of receipts needed to claim tax deductions. Since these hours wasted also results in wasting precious hours of work, taxpayers often end up losing their salaries for these hours, this means double loss for a silly mistake of not keeping the receipts at a handy place. To help you save time, money and boost the tax refund, here are some easy tips you can follow:

1. Collect and keep every relevant receipt in a record book

• Whenever you pay anything related to your job, keep the relevant receipts in your tax folder.
• Keep your telephone, power, water, internet, and office supply bills in a separate WFH folder.
• Make sure you record the time you spend working from home in a diary or journal.
• Maintain your receipts for costs associated with a rental property.
• Keep all the invoices of any charitable donation you did in a financial year.
• Record your dates and distance travelled for work-related purposes in a diary.

2. If you are unsure about a receipt, keep it till the tax time

In case, you don’t know whether you need a receipt to file a tax deduction or not, keep it with you till the tax time. When the tax time is near, show it to your accountant to find out if it was of any use or not.

3. Don’t use a highlighter on your transaction records or receipts

If you used a highlighter on any or some of your receipts, you may end up in trouble as the highlighter ink often fades away quickly, leaving you with a blank piece of paper. You cannot include a receipt in your deduction claims if you are unable to read it.

So, these were some of the receipt managing tips you need to follow to avoid any hassles at the tax time. After following these tips, you can easily access all the deductions that will increase your tax refund by opening your tax folder when tax season comes around.

For any professional tax assistance in Geelong and Dandenong, feel free to schedule a consultation session with one of our qualified tax accountants at KPG Taxation.