Making Your Year End Count
It may seem strange to be talking about a current year end for your business when you are focusing on your last year’s taxes. When you stop to think about it though, by the time you get those taxes completed you are near the end of the first quarter of the current year.
When you use the services of a good tax accountant you will often find that they can give you some tax planning advice based on your tax return, that can be beneficial for your current year and going forward. You may want to implement this advice as quickly as possible so you can take as much advantage of it as possible throughout the rest of the year.
This is just one reason why you want to get your business taxes done early. As your accountant goes through your financial statements they get a clear picture of the financial status of your business. They also see some things that perhaps if you had done differently would have realized you some greater tax savings.
You may be drawing close to where you will be no longer able to utilize the small business deduction. There may be ways that you can reduce the capital in order to keep you within the deduction level. If so you will want to implement this as quickly as possible in the current year.
As a sole proprietor or partnership then your business income can be used in the calculations for your RRSP’s. You want to capitalize on this before the RRSP deadline. Again, another reason for getting your taxes done early.
There are many different ways that your tax expert can suggest to help you reduce your tax costs, but in order to do this he needs to have accurate financial records which of course are also necessary for the filing of a proper tax return. This is why your year end is so vital to your tax obligations.
To make the most of your tax situation the best step is to find a good Toronto accountant. Then get your year end financials completed as quickly as possible. Go to your new tax expert early and get the taxes completed. Then each year continue to utilize the services of the same accountant so they can get to know your business and perhaps offer some long term projections when it comes to tax savings.