Tax season is always challenging for small business owners in Canada, as they lack the resources to file tax returns. Hence, small businesses need to file their business tax return without making any mistakes. Therefore, they search for the best options for filing their returns to the CRA (Canada Revenue Agency). If you run a small business and feel frustrated in the tax season, you can benefit from the following tips:
- Stay Organized: Staying organized is vital for small businesses to remain prepared in the tax seasons. Things can get out of your hands and become complicated if you overlook the tax seasons. For staying organized in tax season, you will need previous tax returns, revenue/income/dividends details, expenses’ receipts, & GST/HST return documents. Keeping these documents can help you file your tax returns to the CRA without mistakes and maximum benefits.
- Make Use of Virtual Filing: Covid-19 has not yet perished, and it looks like it will stay with us in the next year, too. Why not make the most out of virtual filing this year to file tax faster and getting refunds faster?Hence, it would help if you prepared yourself for virtual filing; you will need technical tools or a tax expert. File early going virtual and avoid any penalties for late filing from the CRA.
- Be Prepared for the Worst: Businesses are audits when CRA wants to investigate them. Moreover, CRA rarely audits any small business; however, it does not mean it can never audit such a business. Hence, small businesses must remain prepared for the worst filing their business tax return in the pandemic. If you remain prepared, you can avoid the complexities if the CRA audits you concerning your returns.
- Do not Ignore the Benefits of Tax Filing: Based on your province, you can benefit from Input Tax Credits (ITCs) with tax filing. You may hire a CPA of a reliable accounting firm to help with tax filing and maximizing from it. A CPA (Chartered Professional Accountant) is your best resource to determine your legitimate ITCs. Nevertheless, finding the best CPA having tax expertise will need you to do research online.
- Hire the Best Tax Expert for Tax Filing: Preparing tax returns is never an easy job for small businesses, so it remains the same for you, too. You will not want to pay more taxes owing to your lack of tax knowledge. Plus, you will want to avoid CRA penalties with wrong tax filing. Therefore, finding the best tax expert for tax filing should remain a top concern for you.
A qualified, respectful, and experienced CPA or a tax expert can overcome your tax burdens and provide you with peace of mind. Hence, you must hire the best CPA or a tax expert after scrutinizing the CPAs of different accounting firms. If you do not have time to examine the most reputable CPAs, you can choose the most popular CPA firm. Once you find the tax expert, you can feel worry-free about filing your business taxes.
Remember that tax season may seem scary or complex, but you can survive this time with proper tax planning. Therefore, you must plan for taxes making the most of the above five tips or finding requirements for filing taxes online.
Tax season is frustrating and complicated for small business owners owing to their lack of resources. However, a small business can file their business tax return without worries if they remember the following five tips:
- They must stay organized with the required documents and receipts for filing their taxes.
- Making use of virtual filing can help them save time and benefit from refunds faster.
- Small businesses should remain prepared for the worst in the tax season in a pandemic.
- Small businesses should take full advantage of ITCs.
- Small businesses must find the best CPA of a reputable accounting firm to avoid mistakes with tax filing and maximizing from it.
In a nutshell, remembering these things can help the small business avoid frustration and complexities in the tax season.
SohailAfzal is a CMA (Certified Management Accountant) and the Founding Partner of a professional accounting firm, GTA Accounting. He understands the needs of small-scale businesses & corporations and offers them tax advice to overcome their tax burdens. He is a professional author who often writes articles related to accounting.
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