Tax season is fast approaching and is just around the corner. For many businesses scrambling to organize their tax documents and various paperwork, it can be a stressful time for both workers and managers. That being said, a chartered professional accountant can save you so much trouble and time with their accounting expertise. They’ll know what to look for and help you avoid being penalized by the Canada Revenue Agency (CRA).
Quest CPA Consulting is an accounting firm and taxation company that has worked with countless businesses to help them prepare for tax season. Our team of experienced and trained consultants will help you through the filing work and ensure you meet those tax deadlines. We take into account the uniqueness of your business and note every detail to meet your business’s needs.
To help you prepare for the tax deadline in April, we’ll go over some ways you can start planning for tax season and factors to keep in mind while doing so. We’ll also explain how outsourcing your accounting and bookkeeping is a much better option than trying to shoulder everything yourself.
What Are Some Ways That I Can Start Planning For Tax Season?
If you’re a manager running a small business, there are many things to consider as tax season comes around. One of the first things to think about is how you’ll file your taxes. You can either risk making mistakes by filing your taxes on paper or online. The best alternative is to have one of our professional accountants help you manage your tax documents ahead of the deadline. There are three types of tax documents an announcement can help you organize.
The first is your business’s sales tax that you may add to your total prices. The government expects you to collect that cash for them and return them at specific times. An accountant or bookkeeper will organize what you’ve collected, then put together a filing report for the tax office.
Another tax is the fairly straightforward Income tax, which is calculated as part of your overall profits. The higher the profits of a company, the more taxes they’ll have to pay. A good accountant will help you look for ways to mitigate how much you owe the government through tax credits or expenses. This is the most technical process of tax filing because the returns will be checked by government tax experts. If they suspect foul play, the accountant will prepare your business for a formal audit.
Lastly, there are employee-related taxes you’ll have to consider dealing with. Businesses are expected to withhold income tax from employees’ wages and submit it to the tax office. This tax is often calculated and collected from employee pay after each paycheque. An accountant will help you file reports about how much you paid your employees and how much tax you withheld. Afterwards, you’ll have to submit those tax earnings to the CRA at a specified deadline.
Above all else, you should work with our accountants to compile as much financial information about your company as possible. Essentially, collect every expense and claim to ensure you can qualify for specific tax credits. It’s important you have documentation that relates to things such as medical expenses, disability taxes, moving expenses, union dues, and much more. You should also track down any missing bills, receipts, or charitable contributions. Your accountant can also help you contact any employees, associations, or institutions to find the information you need, if necessary.
What Are Some Factors To Keep In Mind When Filing My Taxes?
Since we’ve gone over ways to prepare for tax season, the important factors to keep in mind ahead of the deadline are keeping track of receipts and invoices, backing up important documents, and staying in preparation for a potential audit. There are other factors to keep in mind, however.
You should work with an accountant to create an inventory of your business’s financial accounts. It will help you organize your business’s income, expenses, and other financial assets associated with your company. Moreover, you should also try and reconcile all your financial balances by categorizing your income and expense transactions. That includes expenses procured from your personal assets, as some small business owners may have to funnel their own money in order to stay operational.
Afterwards, your accountant can easily analyze results, set goals for your business, and assist you in managing your cash flow for the next year. This makes outsourcing your tax bookkeeping an attractive option for the next tax season.
Why Should I Outsource My Bookkeeping And Not Do Taxes Myself?
Ultimately, you should outsource your tax bookkeeping and accounting to our trained professional consultants because they’ll have the knowledge and experience to help you. Tax season can be stressful for some business owners and our job is to relieve you of some of those pressures. We’ll help you meet tax deadlines on time and make sure no errors are made during the filing process.
Outsourcing your tax process can give you more peace of mind and help you save money, time, and effort for your business. Book an appointment with our Quest CPA Consulting team today to prepare for tax season now and stay ahead of upcoming deadlines!
