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5 tips to handle disruptive, busy tax seasons for Australian businesses

Distractions during the busy season not only affect the productivity of your team, but also impact employee morale when trying to meet tight deadlines. Whether it’s crunch time during tax time when the workload is even greater, or really any other time during the year, the goal is to maximise your efficiency and output.

Workplace interruptions are most commonly unplanned. The Washington Post reports that work interruptions can cost 6 hours a day, and a typical office worker is interrupted every 3 to 4 minutes! Regardless of which profession you belong to, we all have times that are busier than others. 

Here are my tips to handle common interruptions and survive the busy season.


1. Plan for interruptions

Whether you work remotely or in an office, and regardless of your position in the workflow, it’s necessary to plan for interruptions. Not planning for interruptions can often result in missed deadlines. To overcome this, while committing to a deadline or providing time estimates, consider adding a buffer for such disturbances. Worst case scenario: you’ll find yourself finishing your tasks earlier than expected, with additional time to accommodate that last-minute tax filing request from a friend or even taking a short power nap.


2. Establish proper expectations

While it may seem obvious to provide your clients with proper expectations, this may be one of the most challenging things to accomplish when overwhelmed by daily tasks. Here are a few tips to help you establish the right expectations:

  • ‘No later than’ should be your favourite line when setting expectations with clients and/or team members.
  • When requesting documents, be sure to provide a clearly defined timeline; this will help eliminate last-minute requests.
  • Use ‘in case of emergency only’ sparingly. 
  • It’s important to educate those closest to you about your seasonal schedule. This will prevent frequent calls, but also ensure the same support.


3. Limit communication channels

Take a moment and consider just how many different channels of communication you must monitor every day. Now, imagine if you streamlined those channels to the most important ones; how much time will that possibly save?

  • Instead of using 3 different emails, use only one dedicated address by forwarding the other 2 to that address.
  • Instead of picking up phone calls, use a call-back text option, or even set your voicemail to divert the traffic to a dedicated Inbox.
  • Delegate walk-ins to team members.
  • A ‘do not disturb’ sign on your cubicle or office will help to prevent unnecessary chatter from colleagues who are on a coffee break or casual walk.


4. Schedule your day

Smart means of communication are the most common addiction in the tech-savvy work age. Consider that the average person is likely to check their phone 47 times a day and look at email 15 times a day. I think one of the most time-consuming interruptions in our day is trying to respond to emails. While we understand that staying on top of communication is important, overdoing it can jeopardise the success of your practice. In a quest to get the most up-to-date information, it may be difficult to suppress the urge to check your voicemails, texts and emails, so schedule these tasks at reasonable intervals.

Based on my own schedule, the most successful times to incorporate communications in my day are the first thing at the beginning of the day, right after lunch and at the conclusion of my day.

While this schedule may differ depending on the volume of your communications, you can adjust the frequency based on your own needs. Regardless of the solution, you may find it easier to gain acceptance from your clients by telling them in your signature how often you check email; drafting an auto-response also will help handle the anxious and impatient sender.

Take advantage of practice management and workflow tools. They’ll let you see what’s due today, this week and into the future, helping you reorientate when you inevitably get distracted and need to refocus on your to-do list, and possibly reprioritise the rest of your day. 

With the ability to create overall projects, as well as individual tasks within each project, the Work tools in QuickBooks Online Accountant allow you to assign tasks to yourself or members of your team, and monitor their status at a glance. Being able to see what’s due, when, and check progress in real-time, sending messages and requests to clients and receive replies, all without leaving your workflow can be an invaluable way to get your day back on track. 


5. Relax and recharge

Let’s all be honest: this is the most important and most neglected item on this list. I want you to question yourself right now: When was your last meal? When did you last drink some water? Taking the time to wash that apple on your desk will provide your mind the silent pauses it needs to remain sharp.

However, moments of relaxation aren’t enough – it starts with proper planning. Each week, add 15 minutes to your grocery trip so you can flood your desk with healthy snacks to power your way through long days. Plan your day in a way that you remain fresh enough to handle unexpected situations and last-minute requests. Even if that dream vacation must wait another year, take one extra hour each week to find some special way to celebrate yourself.


Train yourself

Interruptions and distractions are part of our work life and mostly unavoidable, but by planning and managing them using proper methods and strategies, you can easily handle a busy tax time and other work throughout the year. It’s possible to train yourself to look past these distractions and regain your focus. Remember: self-control is your biggest strength!

This article originally appeared on QuickBooks and was syndicated by MediaFeed.org.

Home businesses tax deductions to take as a small business owner

Home businesses tax deductions to take as a small business owner

Small business owners take on a considerable amount of responsibility. Beyond serving clients, they must also take care of all the minutiae of running a business, including keeping track of expenses they can deduct as a small business owner.

Fortunately, small business owners and entrepreneurs who use their home for work can benefit from various home business tax deductions that help them reduce their taxable business income. Common deductions include office supplies, software and internet access, but deductions can vary widely depending on the type of home business you run.

  • Who qualifies for home business tax deductions?
  • 25 home business tax deductions for your small business
  • How to write off home business expenses

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If you run your business out of your home, you may be able to deduct expenses for the use of your residence on your taxes for your small business. The home office deduction can be utilized by homeowners and renters, and any type of residence can qualify (single-family home, condominium, manufactured housing, etc.).

To qualify for the home office deduction, your home business activities must meet the following criteria:

  • Regular and exclusive use. According to the IRS, you must “regularly use part of your home exclusively for conducting business.” In other words, you must have a space in your home that you use only for business purposes, such as a home office or extra room that is used only for business and never for personal use.
  • Principal place of business. To qualify for the home office deduction, your home also must be the principal place your business operates from, although there are exceptions. The IRS reported that you may qualify for the home office deduction if you also have a business location outside of your home, provided you use your home for a substantial component of your business. For instance, if you conduct business in another location but have meetings with clients or patients in your home, the IRS allows you to deduct expenses for the part of your home that you use “exclusively and regularly” for business purposes.

There are some exceptions to these rules, including for those who run a home daycare. If your small business involves watching children in your home, then it would be impossible to meet the “exclusive use” criteria if you’re watching children in your own living area. To qualify for this exception to the exclusive use rule, you must provide daycare for children, persons age 65 or older or persons who are unable to care for themselves. Additionally, you must have “applied for, been granted or be exempt from having a license, certification, registration or approval as a daycare center or as a family or group daycare home under state law,” noted the IRS.

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If you’re eager to reduce your taxable income this year, figuring out which home business tax deductions you can take is a smart first step. Here are 25 common deductions you may be able to qualify for.

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Business supplies and office expenses, such as office furniture, printer paper, pens, calculators and business cards, are deductible provided they are for business use. According to the IRS, business expenses must be both ordinary and necessary, meaning they are “common and accepted in your trade” and “helpful and appropriate,” though not necessarily indispensable.

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Small business computers and software you need to purchase for your business, including small business accounting software, should be tax-deductible business expenses provided these purchases are ordinary and necessary for your business to remain in operation.

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You may also be able to deduct home repairs and maintenance performed on your place of residence, but only for the part of your residence that is used exclusively for business purposes. According to the IRS, an example could include “painting or repairs only in the area used for business,” like a new coat of paint or replacement flooring in your home office.

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You can deduct the business portion of your rent as an expense if the property you rent is for use in your trade or business. However, you cannot deduct rent as a business expense if you have or will receive equity in or a title to said property. Per the IRS, rent is defined as “any amount you pay for the use of property you do not own.”

In terms of depreciation, the IRS said that you can typically deduct depreciation on the business use portion of your home as well, in an amount up to the gross income limitation over a 39-year period.

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If you have a home office, your house utilities will also be required for your business. As a result, you can deduct a portion of your utility bills, such as gas and electric bills. However, you can only deduct a portion of these expenses since, obviously, part of your utility bills are for personal use.

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If you use your car for business purposes, you can deduct auto-related expenses for the business use of a car. The IRS also reported that, if you use your car for both personal and business use, you must divide your car expenses based on the mileage you drive for personal and business purposes.

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You can also deduct mileage for all travel related to business. The IRS offers a table of standard mileage rates and mileage deduction rules you can refer to for the last several years, including mileage expenses for 2020.

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You can also write off employees’ pay as a small business owner. This is true even if you operate your business out of a home office.

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You can also deduct contributions to retirement plans, including tax-advantaged retirement plans for the self-employed or small business owners, such as an SEP IRA or a solo 401(k).

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If your business is paying interest on a credit card or loan that you borrowed for business activities, you should also be able to deduct this interest as a business expense.

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According to the IRS, you may be able to deduct various federal, state, local or foreign taxes that are directly related to your trade or business.

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You can typically deduct the cost of business-related insurance products you pay for, provided they are applicable to your trade or profession.

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If your business creates products or purchases them for resale, you can typically deduct the cost of these products or the costs involved in manufacturing them. This can include the cost of raw materials, freight, shipping, storage, direct labor and more.

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Thanks to the Tax Cuts and Jobs Act of 2017, you may be able to deduct up to 20% of your qualified business income on your taxes. This deduction does have limitations based on your trade or business as well as how much you earn, however. Specifically, joint tax filers with incomes below $315,000 and other filers with incomes below $157,000 can claim this deduction in full provided they work in a qualifying industry. For 2018, joint tax filers with incomes between $315,000 and $415,000 and individuals with incomes between $157,000 and $207,500 were subject to phase-outs.

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If you use your home for business purposes, you can generally deduct cleaning services and supplies that you purchase for the business-related portion of your home.

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If you own your home and have a home mortgage, you can deduct a portion of your mortgage interest on your business taxes. Deductions are based on the percentage of your home that you use for your business. If your lender requires mortgage insurance, part of that can be deducted as well.

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Business-related travel expenses can also be taken as a business expense. This could include travel to meet with clients or to professional education or training events.

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If you pay for professional services, such as legal advice or tax preparation, these expenses can be deducted as business expenses.

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If you pay for marketing help or a business coach, these expenses can be deductible from your business income.

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If you ship items for business purposes, shipping costs can be deductible on your taxes. The same is true for postage when used for business purposes.

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A security system that protects the doors and windows in your home from intruders can also be partially deductible as a business expense, provided part of your home is used for business purposes.

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Professional memberships you pay for and subscriptions to business-related publications can also be tax-deductible.

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The IRS said that while the first local telephone landline in your home is not a deductible business expense, “charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses.”

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Health insurance for yourself and your family is deductible as a business expense when you’re self-employed, although you do not have to have a home office to qualify for this deduction.

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If you pay for or reimburse education expenses for an employee, you can deduct the expenses if they are part of a qualified educational assistance program, per IRS rules.

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If you’re feeling overwhelmed by all of the home office business expenses you might have to keep track of, you should know that the IRS also offers a standardized home office deduction that requires less legwork upfront. Here are the two options you have when it comes to how to write off home office business expenses this year:

  • Simplified home office deduction: Since the 2013 tax year, taxpayers have been able to access a simplified option for computing the home office deduction. This option lets you determine a standard deduction based on the square footage of your home office space, thus letting you avoid tracking and reporting all of your individual home office expenses. Of course, the simplified method isn’t perfect since you can’t take some deductions like depreciation. You also cannot carry over a loss from a previous year, which is a departure from the regular method.
  • Regular method: If you keep excellent records and prefer to deduct business expenses the old-fashioned way, you are still able to do so. With this method, you would need to keep detailed records of all your actual expenses for your home office including mortgage interest, utilities, depreciation and more. From there, your deduction will still be determined based on the percentage of your home used for business purposes.

If you’re using the regular method, you should plan on using IRS Form 8829 for certain business-related tax deductions when you file your taxes. But be aware that some business expenses don’t fall under the home office deduction, so they would be deductible within other areas of your taxes, such as Schedule C or F. Examples include telephone expenses, dues and salaries.

Also note that if you use the simplified method and itemize deductions, you can deduct some expenses for your home that are otherwise deductible, including mortgage interest and property taxes, as itemized deductions using Form 1040 or 1040-SR, Schedule A.

When choosing which method to use for your home office deduction, keep in mind that both options have pros and cons. The regular method requires a lot more work, but you have the potential for a larger deduction if you have a lot of qualified expenses within a year. The simplified method is easier, but not necessarily ideal if you want to recapture depreciation when you sell your home, or if you want to be able to carry over losses. Make sure you understand each method and its limitations so you can make an informed decision.

This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.

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Featured Image Credit: Supannee U-prapruit/istockphoto.

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