It can be overwhelming to file your business tax for the first time. However, if you take it one step at a time, you can avoid rookie mistakes while enjoying money-saving opportunities. In this article, we have put together some tips to help you out when you’re filing your first taxes.
1. Take it step by step.
To prepare your business tax return, you must reconcile the payroll, sales tax filings, accounts receivables, and accounts payable from your bookkeeping activities. These financial statements provide us with the documents we need to generate the tax return. Thus, you’re going to save hours of your CPA’s billable time through a perpetual bookkeeping effort, coupled with a good summary of the segments mentioned.
2. Make taxes part of your financial planning.
Taxes should be considered as part of a business’s overall financial plan. Spring is an ideal time to begin working on tax planning for the coming year. In the summer, make sure you update all your records. Then, consult your planner at the end of the year to ensure that you have taken advantage of every tax-saving strategy available. Your taxes would have been ready by January since you had started planning them out for the whole year.
3. Leverage specific tools.
It is possible to streamline tax filings if they are incrementally addressed throughout the year. It would help if you did not wait for your accountant to ask for documents before you begin sifting through old paperwork. Rather, share the well-maintained electronic file with them. To properly streamline your tax fillings, utilize an inexpensive or free tool that organizes and codes all business transactions. Little effort will be required after that.
4. Allocate weekly time to track your taxes.
Small business owner is the number one target for the IRS. However, many small business owner run around all day trying to keep their business doors open, but not tracking expenses accurately will close the doors before they can figure out what happened. Keep track of your expenses by checking and balancing your account at least once a week.
5. Rely on others’ expertise.
Small business owners often desire to control and know everything about their business. However, when it comes to taxes, it’s best to rely on the experts to figure out how to pay the lowest amount to the IRS. Due to the new tax law changes, it’s more important than ever to work with your accountant and operate out the numbers to figure out the best strategies to structure your business.
In conclusion
The following business tax tips may help reduce your business tax liability. However, if you need any help filling your tax, contact H and R Block Canada.
H&R Block provides a separate website for Canada tax returns filers, providing two online filing options. They offer a 100% accuracy guarantee, promising to pay interest and penalties if an error stems from the software itself. In addition, the download version offers free telephone support in addition to the free email support provided by both versions.
At tax time, H&R Block provides online coupons for their customers. If you plan on doing your taxes yourself, check their site and take advantage of the savings.