Missed tax deadlines can be extremely costly for business owners. With just a few weeks until the June 15 tax filing deadline, Sloan Partners offers a few simple tips to get your filing in order.
If you’re like most business owners the June 15 tax filing deadline with the Canada Revenue Agency is a date that’s etched in your brain. But so many business owners procrastinate, putting off the inevitable and end up in a mad dash to get their taxes completed to meet the looming deadline. With just a few weeks left to get your filing in order, Sloan Partners offers a few simple tips to ensure you are prepared and can take advantage of all potential savings opportunities.
Missed deadlines can be extremely costly for small and medium-sized business owners. To make sure you stay on top of deadlines, download the Canada Revenue Agency’s new Business Tax Reminders mobile app, available now free of charge on most mobile platforms. The app lets business owners create custom reminders and alerts for key CRA due dates related to installment payments, returns, and remittances. For more information on the Business Tax Reminders mobile app, go to www.cra.gc.ca/mobileapps.
Take Advantage of Tax Credits
Small businesses often miss out on special tax credits available, especially within certain industries and types of businesses. Be sure to discuss new and available credits such as common research and development tax credits with your accountant.
Don’t Miss Deductions
There are many deductions business owners can take advantage of that can positively affect your bottom line. Whether you have 100 employees or run a home-based business, make sure you stay current on available deductions, from accounting and legal fees to vehicle expenses and capital asset deductions, such as computers, automobiles and furniture that may be depreciated at varying rates.
Avoid Common Audit Traps
It is very important to be aware of potential deductions that raise a red flag with the CRA. Be sure to be specific and properly classify employees and independent contractors, and be watchful of home office deductions and large miscellaneous deductions relative to your income that are watched carefully.
Accurate, detailed record-keeping is a must for business owners. If you stay organized throughout the year and keep up on accounting and tracking business expenses, preparing for tax filing can be a breeze; saving you time and money come tax season. The more organized your records are, the easier it is for your accountant to prepare your returns. If you’re behind the ball this year, consider making a checklist of outstanding items like uncategorized expenses and missing documentation and begin to gather all necessary paperwork. And, make sure you have an appointment in the books with a tax professional to keep you on track for the June 15 deadline.