As the snow begins to melt and the weather gets warmer, small business owners across Canada are reminded of tax season. A season dreaded not only because it means having to make a payment, but also the stress behind filing them correctly, collecting receipts and meeting deadlines. It can be overwhelming! Here are some tips to help you navigate it:
Missed preparing for tax season in advance?
Leaving things to the last minute contributes to tax time stress. That’s why it’s important to set your business up for success by preparing with the use of a few tips and tricks. Creating a checklist is a great way to ensure you include everything when filing your tax return. Organizing your paperwork throughout the year and keeping sufficient documentation on hand is also useful in making the tax season more efficient. To file your taxes, you will need your business number, social insurance number, and any records pertaining to your sales and costs of goods sold. Also, collecting your expense records, especially your receipts, throughout the year will help ensure everything is in one place for when you need them. Categorizing them by expense type will help you be more organized for when tax season approaches and it’s time to pull them out.
Know what is tax deductible.
Tax deductions are expenses that you incur to earn the business income (see source). It serves as a great opportunity to reduce your overall tax return. It’s beneficial to your business to ensure its accuracy and deduct only the expenses that the CRA deems eligible. Some examples include business start-up costs, certain supplies and office expenses, property taxes and/or rent payments for your office, and more. Refer to the CRA’s full list of common business expenses that you can deduct, for more information.
Pick a payment method that’s right for you.
A challenge that exists when paying your business taxes is the limited payment methods that the CRA accepts directly. Online services like PaySimply lets you pay your taxes to the CRA using the payment method you prefer. Payment options on PaySimply include: Visa, Mastercard, PayPal, AliPay, UnionPay and Interac e-Transfer. If you’re someone that prefers to transact in person, PaySimply also gives you the option to pay your taxes with debit or cash at your local Canada Post for same day payments. With no account set up required, PaySimply is simple, secure and takes some of the stress out of paying your business taxes.