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The Do’s and Don’ts of Business Taxes

When you’re focused on businesses successes and challenges, taxes can easily slip your memory. It’s easy to forget to stay organized and prepared for the tax year-end, especially for small businesses without an established payroll department. 

We complied the top do’s and don’ts to help you prep for your business’ filing. 

DO: Keep track of your papers  

File every receipt, bank statement, invoice and payroll record properly so when tax season comes, you can grab everything at once and get started. If you’re unsure where to start, there are a few tracking applications for small businesses to help store information.   

DON’T: Throw away last year’s tax records 

Just because you’re done filing doesn’t mean you should throw out all records! Keep every yearly tax record and the papers associated for three years in a Bankers Box in case you need to access it. 

DO: File on time 

It may not seem like a big deal to file business taxes a few months late, but this habit benefits no one. Not only does it reflect badly on your business, but the longer you go, the harder it becomes to stay organized and keep track of what records belong to where. 

Remember: Small-business taxes and incorporated businesses have different tax deadlines! Make sure you know where your business lands, so you file on time.

DON’T: File without an accountant 

Although there are many CRA-approved platforms online to file your corporate taxes, they leave plenty of room for errors and mistakes and missed opportunities. Taxes can be complicated, and the last thing you want is to file taxes incorrectly. Using an accountant can help make a clear difference between the corporation’s taxes and your personal expenses. Good thing Mowbrey Gil’s got a team ready to help you! 

DO: Know your payments 

Unlike personal taxes, business taxes are often paid in monthly or quarterly installments that vary depending on your business, province tax and territorial tax. If you’re unsure, the Government of Canada has a guide to help.  

DON’T: Claim deductions without research 

Businesses have many deduction opportunities to help lower their payment, but some deductions have conditions attached to be considered proper claims. Our team of experts at Mowbrey Gil works alongside you to make sure every deduction you claim is appropriate.

We hope this helps you feel more prepared! Our team is here to help you take the stress out of filing so you can focus on your business. Contact us to learn more!

Source: https://www.cpacanada.ca/en

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