As a business owner, you know that your day-to-day responsibilities include making sure your employees are up to date on their training, scheduling and organizing payroll and other essential tasks. But do you know how to plan for taxes? It’s important to think about the tax implications of your business decisions because every year, businesses pay a combined $100 billion in corporate income taxes. Those dollars would go a long way toward funding infrastructure, education and programs for all Americans if they were not diverted into government coffers.
Talk to your accountant or tax advisor.
A good accountant or tax advisor can help you identify deductions and other tax planning opportunities. They may also be able to assist you with business finances, personal finances, and other areas of your business.
Make a list of your business expenses and income.
- Keep a record of all business expenses.
- Keep a record of all income.
- Keep a record of all assets and liabilities.
- Record all transactions, including purchases, sales and deposits into your business account(s).
Keep good records.
- Keep a record of all your business expenses.
- Keep a record of your income.
- Keep a record of your business transactions, such as:
- the date and amount of each payment you receive for goods or services provided by you;
- the date on which these payments were made; and
- any other information required by the Canada Revenue Agency (CRA).
Knowing what deductions you’re eligible for can help you lower your tax bill.
Knowing what deductions you’re eligible for can help you lower your tax bill.
Deductions are expenses that reduce your taxable income, which means they lower the amount of money that is taxed. For example, if a person earns $50,000 and has $10,000 in qualifying business expenses, then their taxable income will be reduced to $40,000 (the first $50k plus half of their remaining expenses).
If you have any questions about deductions or would like some advice on how to maximize them in your own situation please contact us today!
If you’re looking to save some money on your taxes, it’s important to know what deductions are available and how they apply to your business. If you have any questions or concerns about how this information applies to your situation, contact an accountant or tax advisor who can help clarify things for you.
