The tax season is upon us, with most countries requiring their citizens to file their tax returns this month.
Using MoneyWiz can dramatically ease your tax filling and lower your accounting expenses.
Here are a few tips on how MoneyWiz can help you with the paperwork.
Profit & Loss
One of the basic reports needed for tax filing is the Profit & Loss report, which basically lists your income & expense totals for the year. While MoneyWiz doesn’t provide a dedicated P&L report out-of-the-box (teaser: this will come in a few months via a free update!), getting all the data is not that difficult:
- Generate a Statistics report for the last year. The Statistics report will show your total income and expenses for the year.
- If your accountant requires a breakdown by categories, you can simply export the Categories report. You may need to do this for both – income and expense categories.
Taxable income vs non-taxable income
While the rules of what income is taxable are different in each country, there are some general rules:
- Salaries, dividends and sales are usually taxable
- Income from investments is usually taxable
- Income from refunds and bank rewards (like credit card cash backs) are usually not taxable
- Donations are usually not taxable, but should be reported
The best way to make a breakdown of your income is to generate the Categories report for all income categories.
Monthly reports and account balances
If your accountant ask for monthly reports, the easiest way to get those is to generate the Trends report for last year. If you are required to submit your account balances as of 1 Jan 2014 and 31 Dec 2014, the easiest way to do this is to enable the Running Balance feature in MoneyWiz (via Settings/General) and then see the balance at the desired dates for each account.
Deductions & Reimbursements
Depending on your spendings and your country’s laws, you may be eligible to deduct some of your expenses. It’s best that you consult with a professional accountant. Once you know what expenses you can deduct, you need to identify which expenses fall into this category. The easiest way to find specific expenses (if you can’t remember their exact account and/or date) is to perform a search in MoneyWiz on all accounts. To do that, just tap the “eye” icon near the Accounts button, which will show all transactions for all accounts, then use the search to find the deductible expenses.
Another great way to get deductions is if you drive the same car for business and personal. An automatic mileage tracker can put money back into your pocket. Our new app, MileWiz, is a tremendous help in logging your business and personal miles.
Want to know more? Check out at www.milewiz.com
If you have any suggestions or tips on how you used MoneyWiz to speed up your tax filing, please share them by commenting on this post.