Depending on when you are reading this article, the odds are you'll be trying to catch up last tax years transactions. Welcome to the club. But you needn't worry, we'll have you up on top in no time.
Let's explore a couple of ways to help tackle your transaction backlog:
Record Individually (recommended)
Bulk record (just get 'em in there!)
Let's face it, going through a bunch of receipts one by one is never going to be much fun. But If you make a habit of recording as you go, you’ll only have to do it once.
Benefits of recording as you go/or individually
Saver money. Use Smart Categories
No need to hang onto those pesky paper receipts
Give you the most accurate tax owed throughout the year
An accurate overview of your business
Could help you to make better business decisions in the future
TAXO’D is built to comply with HMRC’s guidelines. We have what is called Smart Categories which are tied to your Tax Profile which does all those crazy calculation for you. So, if you are going down the bulk upload route, then we ‘strongly’ recommend that you do so under the category that best suits your type of expense. It could save you some serious dollar (pounds).
For example, you could total up all your business journeys and record them under the ‘Travel’ category as one entry. However, if you use a vehicle for business then you will need to add this to the appropriate category i.e. Mileage Rate or Van Expenses.
Catching up on Expenses
Grab your receipt box, spike, draw, bin bag or wherever the hell you’ve been hoarding them and organise them into categories: Travel, fuel, stationery, subscriptions, etc..
Total up the cost of each category and enter them under on transaction. See an example of bulk uploading subscriptions, below.
Organising them into categories means you'll still get a good overview of your business expenditure and take advantage of the Smart Categories, saving you money.
Sucky: If your receipts aren’t digitised and saved, you must keep hold of the original receipt for at least 6 years 😅
Note: You can save a lot of work by choosing to ‘recur’. Find out more here.
Only leave a note if you feel your expense needs a further explanation. Otherwise, just leave it blank.
If you can, spread the load. Record 10-20 a day and you'll of caught up in no time without falling into a coma.
Catching up on Income
Depending on your type of business, you'll likely have a lot fewer invoices to catch up on than you have receipts.
If you have time, try to enter each income/invoice separately - at the date, you were paid on.
If you don't, total up the full cost of your payment received from any one client and enter the total amount in one record, under that client's name.
and if you really don't! add up the total cost of all of your income for that working tax year and enter it under one record. Done.