Filing taxes is something every Canadian has to deal with. For many, it can result in crippling stress and pressure, especially if the CRA is involved.
However, it does not have to be a task that is dreaded year-round. Creating a tax-saving strategy sets you up for success when filing your quarterly or year-end taxes. Additionally, a well-planned tax strategy can create money-saving opportunities through applicable tax credits and investment accounts.
Create a Safe Space for Financial Records
A lot of the tax-included stress has to do with organizational issues. Missing receipts or documents can result in an inability to deduct certain expenses, leading to higher year-end taxes.
To save the most money on your taxes, you need to accurately track all your income and expenses. Ensure that you are safekeeping all files and organizing the documents by quarter and year.
Start Tax Saving Investment Accounts
One of the main tools of your tax-saving strategy should be the usage of tax-saving investment accounts. A TFSA protects your investments from capital gain, and an RRSP defers taxes for a later date.
If you do not already have an RRSP or a TFSA created, you should talk to a bank and further explore the potential tax-saving opportunities. Implementing these two investment accounts into your tax-saving strategy will help protect your money from the CRA.
Seek Professional Guidance
When creating and implementing a tax-saving strategy, it is recommended to work with a professional. At NaickerCPA, our team has a wealth of experience in personal and business tax planning.
We work closely alongside you to help you determine the best tax-saving strategy for your financial situation.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
