This time of year (aaaaargh the dreaded tax season!!!) can cause a lot of people undue stress, worrying about tax compliance, saving as much as possible of their hard-earned money, and making sure everything gets done before any sky-high penalties start to add up.
Below are some tips I feel can really help small business owners (and even some individuals) year round to prepare for a more efficient and easy tax experience. It should also help keep things predictable and reliable so trends can take shape and goals can be focussed on.
Have you registered for Clic-Sécur and My Business account yet?
It’s not terribly exciting, but when you want and need answers quickly regarding government compliance, tax questions, regulations and responsibilities as a business owner, these sites can save you A LOT of time on hold. Agents are actually very helpful when you get them, but having access at any hour is a must for any busy business owner struck in the middle of the night with panic about tax remittance deadlines or business number registrations, etc etc. Do you need an audit? Should you register for sales tax numbers? Why incorporate vs sole proprietorship? All these questions can be answered when you access CRA and RevQC websites.
Reconcile those accounts!!
If you do your own bookkeeping make time to reconcile your monthly statements with your accounts ! This is a sure fire way to make sure you have a record of all transactions that have gone through your business accounts and that there aren’t inconsistencies with your bank statement.
Electronic Record Keeping – if you aren’t doing so already, you really should start!
Did you know that the government DOES in fact accept digital copies of your receipts? ( see https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic05-1r1.html and https://www.revenuquebec.ca/en/press-room/tax-news/details/47837/2010-03-29/ – these are for Quebec residents and business owners, please check your provincial revenue agency website for details on electronic file regulations )
You can scan or even take a quick picture with your smart phone of your receipts, save them with an easy-to-understand name and date, and put those crinkly paper receipts in an envelope for safe keeping. Sound simple? It really is and it can save you TONS at tax time because there are no more lost receipts and no more guessing what’s what and if that old Canada post purchase was for business or personal. I like to err on the side of cautious so I’d still keep those old paper copies just in case, but once they’re digitized it will be MUCH easier and faster to find and keep track accurately in your accounting software.
Little changes and minimal time spent on these can help you a lot in the long run, whether you do your own books or not. And who wouldn’t want to reap huge benefits with minimal effort for your finances? That’s always a win-win!!
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