How to overcome tax time anxiety, with Mandy Stonard

How to Overcome Tax Time Anxiety with Mandy Stonard 

Tax time can be a source of anxiety and fear for many business owners due to the complexity and uncertainty surrounding tax obligations. The pressure to accurately file taxes, the fear of audits, and the possibility of unexpected financial liabilities can all contribute to this unease. However, there are effective ways to overcome tax time anxiety. Firstly, staying organised throughout the year by maintaining well-organised records and financial documents can significantly reduce last-minute stress. If you want more of these golden tips, join this conversation with Mandy Stonard and learn more. 

Mandy Stonard from H&R Block will help us squash that signature tax time anxiety. Whether it's getting a MyGov inbox message or stressing over getting audited (seriously, why is this my nightmare?), tax time can be a big worry for many businesses. Mandy explains what needs to happen at tax time, how to ensure you're compliant, and what happens if you do get flagged by the ATO.

Episode Highlights:

• [00:01] Episode intro and what’s in for you today with Mandy Stonard
• [03:00] A quick snapshot of who Mandy is and what she does 
• [04:38] Why business owners have anxiety and fear during tax time
• [06:27] The unnecessary stress on tax and what we can do
• [09:32] How concrete record keeping can keep you in control over tax-time anxiety
• [10:08] How long should you be keeping your business records 
• [11:25] Good record-keeping best practices in this digital era
• [14:56] Commercial break
• [17:07] What happens if you get flagged by ATO for non-compliance
• [20:48] Why self-education is not always factored in as a business expense
• [24:55] What you should be doing to avoid the tax bill shock
• [32:20] Reserving tax if you are doing a side hustle besides your main business
• [33:52] ATO tax payment plans you should know
• [40:00] Wrap up and end of the show

Standout Quotes:

• “A concrete record keeping in your business is not only a way of helping you control your anxiety during tax time. It is the only solution.”- Mandy [09:33]
• “ATO has a certain expectation of income vs. expenses of any business level. If your expenses are a lot higher than your income, the ATO will be drawn to find out why."- Mandy [17:14]
• “Self-education is still one of the grey areas in tax. Sometimes you may incur an expense from your business to further education that is related to your business, but the tax auditor declines to accept that deduction.” - Mandy [20:48]
• “Though ATO provides flexible tax payment plans, they will overcharge you. On the brighter side, you will have the extra flow of money for your business just in case you meet investment opportunities. ”- Mandy [34:42]

Mentioned in this episode:
H&R Block tax course: https://www.hrblock.com.au/income-tax-course/

Thanks to our Season Sponsor, H&R Block.

As Australia’s leading tax experts, the team is here to help, offering ongoing support for individuals and small businesses and FREE BAS services for all newcomers. Get more, for sure, with H&R Block.

Visit hrblock.com.au to book an appointment.