Tax Season Is Coming: Is Your Small Business Ready? | FBC, Canada's Farm & Small Business Tax Specialist

Tax Season Is Coming: Is Your Small Business Ready?

It's often said that a failure to plan is a plan to fail. Though applicable to virtually every aspect of life, this accepted phrase is something that small business owners can certainly appreciate.

Due to limited resources, small business owners are often at a disadvantage when compared to companies that have more capital with which to work. In other words, planning isn't just a good idea but a necessity.

One of the best ways small business owners can plan ahead is by successfully preparing themselves for tax season, which is just around the corner.

The following tips can facilitate getting a jump on the filing rush.

Understand What Tax Deductions Do

Tax deductions are one of those things that you know about but probably haven't given a whole lot of thought to.

By definition, a tax deduction lowers the amount of taxes you owe to the government for various expenses. This means that if you're eligible for a deduction, you should be sure to take as many of them as you can.

You can start by consulting with an FBC tax professional, who will help guide you through what payments you can claim as tax deductible. Much of this is contingent on how vigilant you've been with your bookkeeping.

The more receipts you've kept, the better off you'll be when tax time comes, because you'll be able to point to printed proof of business-related expenses that went toward strengthening your company.

Round Up Appropriate Documents

If there's anything there's a lot of when filing taxes, it's documents.

For example, if you have employees and outside contractors working for you, you'll need to collect documents for each type, as tax obligations differ.

If you're unsure of what documents to get, speak with an FBC tax professional.

Be Mindful of Tax Filing Dates

Most people think of April as the month in which tax forms are due.

While this is usually true, there may be exceptions for small business owners, depending on what their situation is.

Check on Tax Law Changes

Pretty much every year, the government makes changes to the tax legislation, often influencing your tax obligations. Sometimes these changes lead to higher tax rates, which no one likes, but there are also those alterations that can help you keep more of your hard-earned money.

FBC tax professionals keep track of what changes have taken place, so you should consider consulting with one so that you can take advantage.

By preparing for tax season now, you'll be able to more quickly get through the process so you can put your focus back on your company's day-to-day operations and long-term goals.

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