For most Canadians, January marks that time of year when we start the process of preparing for income tax filing with Revenue Canada. Whether it is for Personal Income Tax, Business tax filing, Estate Taxes or you’re a Non-Resident, at some point, you are required to file your tax return. With some smart tax planning and organization, filing your taxes and the stress associated with it, can be a thing of the past.
Keep Your Receipts Organized
With today’s technology, it is easy to keep track of your expenses and receipts. Several accounting programs now offer the option of taking a photograph of your receipt and automatically uploading to your accounting program. You can categorize the expense on the spot with notes, eliminating the stress of trying to remember when or why you made the purchase, or the client that the purchase may be associated with.
If you are not technologically savvy, keeping a simple file folder or envelope of some sort in your car or home is another option. Write down the name and purpose of the purchase on the back of receipt, and put it in the envelope right away. At the end of each month, review and or organize your receipts into a portable accordion file folder that can easily be transported to your accountant. This time saving habit will prevent you from losing your receipts or having to deal with a large pile at the end of the year.
Hire A Professional
When it comes to filing your personal taxes, many people try to cut corners by doing their own taxes or taking it to pop up tax centres that promise a quick return; this is not always the best tax planning choice. Unfortunately, not all pop up tax centres employ Chartered Professional Accountants (CPA’s), that are educated and continuously informed of the changes implemented by Canada Revenue. This can be a costly mistake for you, with no liability to the pop up tax centre.
If you require a business tax return to be filed in Burnaby or Vancouver, a Chartered Professional Accountant like Naicker & Associates should be your only consideration. Proprietary Bookkeeping for self-employed businesses, GST Filings, Corporate Income Tax and Financial Statement Reporting should all be handled by your accountant and balanced monthly. Ensure that all your Payroll deductions and GST / HST are on remitted on time and accurately, preventing unnecessary fines.
Some tasks should be handled by professionals; tax planning, tax preparation and tax filing are some of those tasks. Take some time to set up an efficient and easy to maintain filing system at the beginning of each year, file receipts and important documents to prevent fines and stressful tax filing. Do yourself and your business a favour – hire a Professional Chartered Accountant, and stay stress free year-round and during tax season.