For employees, it’s easier to file tax returns as they are aware about their yearly income. For freelancers, calculating the income in the financial year is a little bit of a headache. Keeping this in mind, we decided to find some of the easy ways through which freelancers can pay taxes in Melbourne.
If any freelancer is reading this post at the moment, read ahead; for you, there are some useful tips given in this blog that will be helpful to you for paying taxes.
Tips for freelancers to pay taxes:
As a freelancer, find out the amount you have earned in the past financial year. Provide this figure to the Australian Tax office, show your work related expenses. Before the process for filing tax starts, stay organised in advance.
Keep your invoices and expenses ready in order to avoid any issues at the end of the year. This will give you the exact figure that you have earned in the given financial year. It is best if you subscribe to Xero bookkeeping system.
This accounting system automatically performs a lot of work that tax agents used to do few years ago. Use a filling system which collects invoices submitted to the clients along with appropriate receipts and a log book containing the business details. Another way is to check the bank statements of the past 12 months, this will give you a perfect idea of how much you earned in the previous year.
Hire an accountant:
For freelancers, with small operations, it is advisable to use My Tax do it yourself system of the Australian Tax office to showcase their income. Yes, if your freelancing is on big scales, then you may need expert advice. With the assistance of an expert accountant from PND Consultants, you can reduce the risk of receiving an audit query from the ATO.
Final notes: These are the general tips for every freelancer. For further guidance, do connect with us and Save yourself from unnecessary audits, be truthful about your income.
