Are you a Canadian small business owner? Looking for the top two tax tips to help improve your bottom line and avoid overpaying the CRA? Lucky for you, we’ve got exactly what you’re looking for.
Being a small business owner can be stressful. Especially when tax time rolls around. Once you’ve taken care of your T4s for your employees, it’s time to focus on filing your company’s taxes. And it can be extremely overwhelming if you don’t know where to start. With that in mind, we’ve rounded up the top two tax tips for small business owners in Canada, so you can feel confident once your fiscal year-end rolls around.
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1. Know When Your Taxes are Due and Don’t Miss Your Deadline
Knowing when your taxes are due is the first piece of the puzzle. Depending on if you’re a sole proprietorship or corporation, your taxes will be due at different dates. For sole proprietorships, a T2125 is required as part of your T1 filing. The T2125 declares all your business income, and is due by June 15. However, any income taxes you owe must be paid before April 30, otherwise you’ll incur costly penalties. For those small businesses which have incorporated, your T2 corporate tax return is due within six months from your fiscal year-end. So if you have a fiscal year-end of December 31, your T2 corporate tax return will be due before June 30. Usually any taxes you owe will need to be paid within two months after the end of your tax year.
Need help with your corporate tax return? IAPC has you covered.
CORPORATE TAX RETURNS CHESTERMERE
2. Deductions and Tax Credits Are Your Best Friend
Knowing what expenses you can deduct as a small business owner is crucial to lowering your tax liability. And properly applying credits can make a mountain of difference when it comes to your overall bottom line. When doing your tax planning Chestermere, don’t overlook vehicle and travel expenses. These two categories usually make up a big chunk of a small business’ expense sheet, and it’s imperative that you track and document them properly. When it comes to tax credits, your small business may qualify for certain ones like the Alberta Investor Tax Credit or Capital Investment Tax Credit. Being able to apply even one of these credits to your small business can make a world of difference when it comes to the amount of taxes you own.
Not sure what tax credits or deductions your small business can claim? Book a free consultation with IAPC today and let’s make sure you don’t overpay the CRA.
Reducing your tax liability as a small business owner is one of the best ways to grow your company. Our tax accountant Chestermere experts have the experience and tax strategies to make it happen. But by following the top two tips above, you’ll at least be on the right path to ensuring your small business is ready when tax time rolls around.
Not Sure Where to Start With Your Taxes? We Can Help
At IAPC, a leading accounting firm in Chestermere, our team of professional tax accountants can help you oversee all the necessary documentation required to file your taxes in a timely, efficient, and accurate manner.
To find out more, contact us at 1 (403) 605-6887 or fill in our online contact form.
