When you’re running a small business, every penny counts. Minimizing taxes may be the difference between a profitable company and one that is just scraping by. To ensure the success of your business, here are some simple tax tips to follow.
Many small business owners opt to manage their own finances, but if you decide to employ a tax accountant, you may find that such a professional can help you save your business money in the long run.
At IAPC, our Chestermere tax accountants can help your business save money with the following services:
- Tax planning
- Cash flow management
- Bookkeeping
- Payroll
- Audit
Your accountant can save your business money in surprising ways. By assisting in everything from everyday bookkeeping to providing tax advice, your accountant won’t only help you cut the odd cost here and there, they can also help you make long-term adjustments that will help you save money.
Grow Your Small Business With Our Chestermere Tax Accountants
At IAPC, our tax accountants are committed to providing affordable and accurate filings and accounting services in a timely manner. When you choose to work with us, you’ll receive worry-free, strong representation in dealings with the CRA, financial health checks, and proactive planning for a stronger financial future for your business.
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CONTACT OUR CHESTERMERE TAX ACCOUNTANTS
4 Tax Tips For Small Business Owners
Running a business is hard enough without adding the complexity of filing taxes each year. The key is to work with your accountant throughout the year, not just when it’s time to prepare your tax return. When it comes to tax preparation, small business accounting, and working with a tax accountant, here are 4 tips you should follow:
1. Hire the Right Accountant
Your accountant should be able to do a lot more than just prepare financial statements. If that’s all they are offering to do, then they aren’t the right accountant for a small business. Your accountant should work with you throughout the year to:
- Track your income and spending
- Ensure you don’t have a cash flow problem
- Monitor your gross and net profits
Pro Tip: Work with your accountant from day one of opening your business, not just during tax season. This is critical for the survival and growth of your company.
2. Separate Business From Personal Expenses
If the CRA audits your business and finds that your personal expenses are mixed with business expenses, regardless of whether you reported business expenses correctly, they could start looking into your personal accounts due to commingled money.
Pro Tip: Always get a separate bank account and credit card for your business and run ONLY business expenses through those accounts.
3. Deduct Your Home Office
Many small business owners operate from offices at home, but not everyone realizes that they can deduct expenses related to that home office. This can include:
- Insurance
- Mortgage interest payments
- Repairs and utilities (eg. internet services)
Of course, you’ll have to determine what portion of your home is dedicated to running your business, but when done correctly, this can benefit both homeowners and renters.
4. Deduct Your Car Expenses
If you use a vehicle for business purposes, then there are some car expense claims that you can make on income tax in Canada, such as:
- Maintenance and repairs
- Insurance
- Leasing costs
- Fuel and oil costs
- License and registration fees
Again, when deducting these expenses, you must calculate what percentage of the time your car is being used for work. From there, you can apply that percentage to your overall car expenses.
QUICK FACTS ON VEHICLE DEDUCTION TAX IN CANADA
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Do you want to know more about how our Chestermere tax accountants can help your small business save money and grow faster? Contact us at 1 (403) 605-6887 or fill in our online contact form.
