Small business owners face a lot of challenges, and tax season can be very stressful if you are not prepared. Owning a business is hard work, and proper bookkeeping is a must for growth and success. If you feel overwhelmed, the following steps will help make tax season easier:
Keep Track Of All Of Your Receipts
It is very important that you keep these because they will allow you to take advantage of the tax credits and deductions that you may be entitled to. Eligible business expenses include parking fees from business meetings, office supplies, costs related to a business vehicle, advertising fees, meals and entertainment, and rent and related utilities, just to name a few examples. Keep all of your receipts in one place and organize them by type of expense if you can because this will make tax planning easier, and you will be able to claim every amount possible.
Do Your Research
There are a number of tax credits and deductions available for small business owners, so you need to do your research so that you are aware of them. Failing to do this may cause you to miss out on benefits and saving opportunities you are entitled to, so take the time to look into this aspect so that more money is returned and placed back into your business.
Optimize Your Capital Cost Allowance
Most business owners have capital assets like machinery, equipment, vehicles, computers and buildings, for example. These assets are treated differently than operating expenses, so they are not viewed the same way as pens, stamps, rent, etc. Ask your bookkeeper or in-house accountants about these items because they can be claimed differently and can be used to your advantage.
Consider Incorporating
Incorporating your business will provide you with a number of benefits, including a lower tax rate. This is just one of the many benefits that can be taken advantage of, so it is an option that is worth considering. This will also provide you with limited liability, meaning your company will be considered a separate entity from your personal assets, which will add more protection in the event of an accident or lawsuit.
Work With Professionals
Dealing with taxes and accounts can be very confusing, and hiring a professional for the job is always best. Accountants have the knowledge and expertise to help every business and will make sure your accounts and paperwork are in order. They will help keep your records organized and will make sure there are no errors so that you don’t face problems in the future. They will also find tax-saving opportunities, so working with a professional is a must.
Oasis LLP can assist you with all of your bookkeeping needs. Whether you are looking for a corporate tax accountant, bookkeeping services or accountants near me, we can help, so if you are in the Markham, Richmond Hill or Vaughan areas, contact us today!
