Xero Blog Goodness

Spaghettios, dog clothes & top tax tips

Published in Xero Business on 20 March 2013 by Jamie Sutherland

Our recent survey to over 400 accounting professionals reveals that Spaghettios, weddings and dog clothes are just some of the tax deductions people imagine they can get away with. Which shows that if you’ve ever tried to claim an unusual tax deduction, you’re not alone!

This year’s survey provides an update to a similar survey we commissioned last year. The year-on-year data provides  interesting insight into changing perceptions of the cloud as well as where small businesses are going wrong. As well as the fun responses, the research highlights just how much pressure small businesses are under in the US this tax season, especially due to the demands of changing government regulations and tax policy.

We’ve put together an infographic to illustrate the key results:

A key output of the survey is the biggest mistakes that small businesses are making. Top of the list is not keeping financial records up-to-date, followed by a lack of understanding about tax obligations.

All-in-all, it comes back to getting to know your accountant better and tapping into the advice they can give you. Xero’s real time single ledger enables your accountant to have a clear view of your finances and provide better advice to you. Note that nearly a third of the accountants surveyed would be willing to give you a discount if you enable them to view a reconciled ledger, which is easy to do in Xero. And more and more accountants are offering cloud services – up 11% to 43% this year.