Being an entrepreneur is quite different from working for a large company in many ways. One particular way that stands out from the rest is the responsibility to maintain and file taxes. Unless you happen to own an accounting or auditing firm, there may be more questions than answers when it comes to how to complete and record everything to do with taxes successfully. Although tax season happens once a year, it is a round the calendar job to keep track of every dollar spent and ensure that taxes are adequately claimed to help bring down your taxes owing. Here are some tips for small business owners that are sure to help you sort out your tax situation.
Keep Every Business Receipt
Although it may seem like a daunting task to begin with, it is imperative that you save every meal, gas, parking, equipment purchase, and any other receipt which has a relationship to your business. It’s easier to rifle through your many business receipts than to not have them and not be able to claim them when the time comes.
Be Mindful of Meal Prices
It is absolutely permitted to claim meals as part of your business expenses, however be mindful of the cost. The Canada Revenue Agency (CRA) is cracking down on business meals submitted for tax write-offs that are more than $100 per person. To avoid catching the watchful eye of the CRA, do not submit any meal receipts where more than $100 is spent on each guest.
Convention or Furthering Education Programs
It is expected that conventions or furthering education programs directly related to your field should be attended and can be deducted as a tax write-off. The key to remember is that only reasonable expenses will be accepted. If there is a three-day conference held somewhere where travel is required, however you decided to stay for seven nights and have a vacation out of the time away, it is only possible to submit three nights as a business expense.
Knowing What Can Be Deducted
Having the knowledge of what is an acceptable deductible and what is unacceptable is an important part of taxes. If taxes are not your area of expertise, it will be beneficial to you to speak to someone who is an expert in the field.
As a small business owner you likely wear multiple hats. When it comes to taxes, however, it’s best to have a professional help you out. At The Beacon Group of Assante Financial Management Ltd. there will always be someone available to assist you with managing your small business taxes.