How to prepare for your first tax season

Staring down the barrel of your first tax season? Avoid the anxiety from the get-go with these top tips for getting through what’s likely to be the most demanding period of your work year.

Find a time-management system that works for you

Work out what works for you when it comes to time-management technology. That could be an app on your phone or tablet (Evernote is a popular option), your trusty Outlook or Gmail calendar, or even an old-school paper wall planner. Whatever method you choose, make sure you use it religiously as you won’t be in a position to squander your most precious resource.

Maintain a work-life balance

This one seems counterintuitive until you accept that even high-performance engines can’t run at top speed for too long without overheating. Sure, minimise any unnecessary distractions during your busy periods, but make sure you also allow yourself some time to recharge. Schedule a run in the morning or dinner with your partner at night, or just get out of the office and go sit in the park for half an hour at lunchtime.

Learn to say “no”

If someone – a client, colleague or even your supervisor – asks you take on something unimportant or non-urgent, simply say “no”. Or, more diplomatically, palm them off with a statement like, “I’d love to help you out with that, but would you mind if we came back to this down the track? It's a busy time of year and I’m not confident I’d be able to devote the time and attention I’d like to it.”

Make use of the resources at your disposal

The Australian Tax Office has an entire section of its website dedicated to helping new tax professionals get on their feet. Take the time to read about everything from the tax-lodgement program to keeping your clients’ details private and protected.

Get up to speed beforehand

You can think of your first tax season as a very long, real-world exam. And what do you do if you want to do well in exams? You study. In this instance, you want to be up to date on any tax changes well before your inbox starts resembling Mount Everest. One way to keep on top of things is to check out The Tax Institute's Taxation in Australia journal, published 11 times a year. The journal is available to Institute members online or as a hard copy.

Keep these tips in mind when entering tax season and not only will you survive, you'll come out a better and more valuable employee, ready to take on whatever else the industry throws at you.

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5 tips to help you get top marks on your exams

The exam season has arrived! Preparing for your exams is a great time to affirm your own knowledge and credentials as well as hone your time-management skills. While it’s easy to get bogged down when preparing for the end-of-semester period, improving your study habits now will have you feeling ready well before crunch time. We’ve compiled a five-step guide to help you successfully navigate the exam period.

1. Study when it’s right for you

Every person has natural peak periods during the course of the day where they feel at their most motivated, alert and focused. Whether you thrive during early mornings or consider yourself a night owl, plan your study schedule for when you are at your sharpest. Prioritise complex study content for periods of high motivation, saving the easier material for when your attention wanes.

2. Summarise your notes, rinse and repeat

You don’t have to relearn everything from the semester to perform well in your exams. Condense your lecture notes into points that cover the key syllabus topics of your subjects. Whether you learn visually, by reading it aloud or by sound, the process of shortening your notes will ensure you fully grasp your exam material.

3. Review the exam questions

Nothing’s better than a test run! Get your hands on some exam questions and practise writing your answers. Not only will be you familiar with the style and format of your test, but a run-through is sure to quell unruly nerves. The Tax Institute’s ConTax Newsletter includes example exam questions around tax topics that may be useful while your unit coordinators may also be able to provide copies of past exams.

4. Maximise what you can do

Time spent commuting or performing low-concentration activities – such as cooking dinner or even showering – doesn’t have to be considered the time wasted. Take the chance to make use of these periods by reading through your notes, browsing your lecture material or testing your memory by recalling key points. While you won’t be able to learn anything too complex, continuing to familiarise yourself with your study points will promote faster learning and memory recall – helping you reach your end goal quicker!

5. Test yourself

Your ability to learn the material and then refashion it in your own words is a tried and tested method that shows just how thorough of an understanding you have. Try creating flashcards from your study notes or using the syllabus as question cues to test your knowledge.

While the study period can be tense, it’s important to remember to balance your study time with adequate rest and relaxation. With a positive outlook and by focusing on your goal, you are moving another step closer to a successful career in tax.

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.

5 skills you never thought were necessary for a tax career

When it comes to choosing the right career, expectations don’t always match up with reality. Often the skills we associate with our chosen profession can differ dramatically from those we should cultivate in order to excel.

For Angeline Tan, tax consultant at financial services firm PricewaterhouseCoopers (PwC), the tax profession offers powerful evidence of this divide.

1. A thirst for knowledge

“It’s commonly perceived that tax is all about the numbers, but it’s also about learning the legislation,” says Tan. “Understanding tax is like learning a new language, so strong literacy skills are really important if you want to get ahead.”

Tax legislation is constantly evolving so you’ll need the ability to adapt to changes and stay up to date. Critical thinking and problem-solving skills are essential to help you apply changing legislation to your clients’ affairs.

2. Good communication skills

Tan says that communication skills are a widely overlooked aspect of a career in tax. The ability to communicate succinctly is critical for tackling client briefs, negotiating with different parties and reconciling professional requirements with client demands.

“It may not be a surprise that to excel in a career in tax, communication is important. But what is surprising is how paramount it is to success. To be a good advisor, you have to communicate what you understand to clients and make sure they understand it too. It’s not enough to be fluent in tax – you need to be able to communicate this with others.”

3. Lateral thinking

Although it’s easy to presume that taxation relies on hard facts and empirical knowledge, Tan maintains that there are plenty of grey areas – a fact that calls for a degree of open-mindedness as well as the ability to think laterally and consider problems from different perspectives.

“There is no right or wrong when it comes to tax. Often understanding and embracing the grey area can mean the difference between a good tax advisor and a great one.”

4. Leadership

During your career, you’ll be leading teams in developing creative ways to solve client problems. Tax professionals often work in teams, so you’ll need to work well with others and have good interpersonal skills to succeed. You could be leading members of your own staff, or project teams made up of a range of external consultants and agencies.

5. Project management

To succeed as a tax professional it’s also vital to have good project management and time-keeping skills to help you deliver projects from end to end. You could be called on to develop information management systems and business processes that underpin the delivery of projects.

Tan says that working as a tax professional involves a willingness to be challenged and learn from experiences. “The ability to be challenged and the opportunity to learn from mistakes and excel are the most rewarding aspects of my job.”

More than an ability to work with numbers, as a tax professional you’ll cultivate a diverse range of leadership, management, critical thinking and problem-solving skills that can be applied to any area of business, industry or government.

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.

5 ways to keep up to date on the latest tax news

Keeping up to date with the latest industry news may seem like another item to add to your to-do list, but staying informed can have a number of positive benefits that can aid you in your career. For instance, when you are aware of the latest news and developments in the industry, you are able to make better decisions, and spot opportunities and threats early on. Additionally, you can develop expertise that will build trust and respect, which from a leadership perspective is invaluable. By utilising these industry resources, you can apply your knowledge to your everyday practice and client cases to become better in your role.

Here some handy resources that can keep you up to date with the latest developments in tax and accounting.

The Tax Institute Membership

Tax law in Australia is continuously evolving, which means you need to keep your skills and knowledge up to date with the changing landscape. The Tax Institute provides membership with all the benefits to keep you at the top of your game. Not only is it a community of highly knowledgeable practitioners, as a member you will also have access to tax updates provided daily, weekly and monthly such as the leading tax journal and newsletters, and access to various alliance partners. The membership also offers access to powerful resources, progressive education and influential networks.

Best for: Membership is a great way for tax professionals to equip themselves with the best advice, and it can enhance the careers of those just starting out in tax.

Government resources

The ATO website has recently gone through some drastic changes to improve usability, and it now has more resources, tools and calculators than ever before. The ATO is currently in the early development stage of building a central newsroom that will bring together a number of newsletters, media-release services and news articles. The ATO newsroom aims to provide tax and accounting professionals, as well as the general public, with a more streamlined resource containing relevant and timely news and information.

For general news and information, government sites can help you find useful data and assistance across all areas of taxation, including tax reform, tax returns, e-tax and myTax. You can obtain various guidance notes on federal, state and local government tax revenue, major tax expenditures, as well as historical information relating to Australian tax instruments, income tax laws, and GST and excise policies. The Treasury site also contains media releases, with the latest announcements from areas such as fiscal policy, the budget and tax expenditures.

Best for: Utilising government resources is great for overarching resources across all areas of taxation, such as tax reform, tax returns, e-tax and so on.

Weekly Tax Bulletin

Thomson Reuters offers a comprehensive range of news services for tax and accounting professionals, including the Weekly Tax Bulletin, which provides a detailed and comprehensive weekly wrap-up of the latest tax developments. The Weekly Tax Bulletin is a subscription-based service, which publishes analytical reports plus expert commentary from practitioners on the latest tax and accounting developments, including the latest tax cases, rulings and ATO updates. Other news services include the Capital Gains Tax Bulletin, the Fringe Benefits Tax Bulletin, the GST News Alert, the International Tax Bulletin and the Super & Financial Services Bulletin.

Best for: Subscription to the Weekly Tax Bulletin is best for the latest tax cases and developments, and expert advice from trusted practitioners around industry developments. 

Law Council of Australia

The Law Council of Australia is the peak national representative body of the Australian legal profession. As a member of the Legal Council, you will have access to professional contacts in your field of practice, receive the latest journals and newsletters, information bulletins, as well as opportunities to attend professional education events. The membership can help your career in tax, as it is crucial to be aware of new developments in the law and how these changes could affect your clients. The membership is divided into five sections, suited to your area of expertise, and as a result you will be able to access the most relevant and timely information for your practice and clients.

Best for: Membership to the Law Council of Australia is great for access to journals and advice from accredited law practitioners. 

Lawyers Weekly

Lawyers Weekly is a leading online and independent news, analysis and opinion source. It is updated daily and delivers the latest news, business and market developments for corporate and in-house legal businesses and practitioners. The site allows you to customise preferences from breaking legal news to the latest in-house updates. The site has both free and pay-to-access content, depending on the type of resource.

Best for: Subscription to Lawyers Weekly is great for the latest law news and industry developments. 

It can be overwhelming and time-consuming to stay abreast of the latest relevant tax news, so utilise these resources for the most useful and up-to-date tax information.

If you are thinking about membership, contact us today on (02) 8223 0060 or visit taxinstitute.com.au/members

Four apps aspiring tax professionals should know about

Apps can bring a world of knowledge to your fingertips. Here are four that every budding tax professional should know about.

Pocketbook

Finance professionals understand the power of a budget, and Pocketbook is both a conscience and budgeting app rolled into one. By syncing to your bank account, the app keeps track of all spending and updates your account balance as you go.

The app even categorises your spending and provides alerts to upcoming bill payments. Among the best budgeting apps on the market, Pocketbook has a feature called Safely Spend, which allows you to limit your weekly or monthly discretionary outlays.

Ever wondered where the money slipped through your fingers? Pocketbook has a geolocation service to track exactly where you spent, in addition to a photo function to help you keep on top of your receipts within the app.

Evernote

Evernote is a single, creative digital space that allows you to collate, as the slogan goes, “your life’s work” in one app.

Using a range of note-taking, photos and recording devices, Evernote is the ultimate note-scribbling app that allows you to arrange your thoughts throughout the day. It includes a dedicated search engine and stores work in the cloud so that it can be accessed from any device – at home or the office. Evernote is synonymous with flexibility and its minimalist design allows the user to customise the interface.

ATO app

It had to be on the list, didn’t it? The Australian Taxation Office’s app is a one-stop shop for income tax and superannuation. In addition to being able to consolidate super into one account and keep track of the progress of a tax return, the ATO app can do a host of calculations on tax commitments and credits.

If you don’t want to wait on the phone to the ATO for hours on end, you can even book an after-hours call through the app. Best of all, you can convert information from the tools into a PDF and email it to yourself.

iPassSafe

Nothing is more frustrating than the rigmarole of the three-password-attempt roulette when you need to enter a site fast. With caps lock, numerical characters and symbols or dated passwords, it seems that passwords are taking over our lives. Enter iPassSafe.

A must for those industry websites or passwords that you might only access once every quarter or annually, the iPassSafe app organises passwords into a wallet via a four-digit code. Whether it’s credit card numbers, licences, bank account details or websites, the app allows users to store hundreds of numbers and passwords.

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.