For this week’s blog post we want to highlight some tips from another great financial blog for small businesses.
Kashoo, Simple Cloud Accounting, polled their community for tips and tricks that will help you dominate your fiscal year-end.
Here’s a highlight of some of the tips from their blog post.
- Reconcile your accounts
You can save time and money by handing over clean, error-free books to your tax professional at tax time.
- Maximize your RRSPs
Benefit from the refundable tax credit to reduce your taxes owing and increase your tax refund.
- Realize a capital loss while there’s still time to gain
Before your year-end is the time to plan for potential tax losses. If you have a losing position you can use that to offset capital gains. Read more about this tip.
- Ensure that all of your business expenses are recorded
Double check to see if there are credit card transactions that haven’t been entered into your records.
- Be sure that interest on loans is recorded correctly
Separate your loan payments and record correctly as principal payment and interest expense.
- Make every effort to collect on outstanding invoices
- Defer income and taxable capital gains until the next tax year
- Purchase new depreciable assets and defer depreciable asset sales
- See your tax professional before your year-end
An advanced tax planning report performed before your year-end can help you make some important tax-management decisions to save money and pay less tax.