That time of year is fast approaching. Yes it’s tax time once again. First piece of advice - don’t panic. Even if you’re totally disorganized & keep all your financial papers stashed in a box. Note: this advice is primarily for business owners. If you’re an entrepreneur, you’re a business owner.
There’s just three things you need to know right now. [1] It’ll take you about a day to get organized. [2] The basic information the tax man wants to know is how much you made & how much you spent to make it. [3] Get a professional to do the actual filing for you. OK, let’s break it down.
[1] Haul out that box with all your financial stuff in it. The one with all your receipts from the post office, printer, web host, office supplies, rent receipts etc. etc. You know the one, hiding in the corner over there. If you’re super organized this is already sorted according to expenses. If not, you’ll have to do it now. What are you waiting for? Start sorting!
- Postal,
- office supplies,
- entertainment,
- charity,
- web master,
- web hosting,
- DNS registration,
- liability insurance
- professional association memberships
- legal & or accounting fees
- outsourcing fees / sub contractors ie other massage practitioners
[2] I think you get the picture. Now total each amount up & write it down. Separatelytotal up how much you made (earned) not forgetting to keep the amount you collected for the government (GST etc) seperate. Do it up in a basic spread sheet in Word & print off a couple of copies.
[3] Filing your return. There’s 4 ways you can do this. Yourself, have a friend, relative etc do it for you, a generic accounting firm say H&R Block, or a professional CA. Methods one & two are the poorest choices, very simply because you’re not familiar with all the little government details to give you best tax rate. Generic accounting firms are better, but they really specialize in personal tax returns, not business. Getting a professional CA to do it is your best bet. It’s their job so they already know more about taxes etc then you & I will ever know. (or want to)
Choose an accountant who specializes in small business with a proven track record. They may even already be a client of yours. Think you can’t afford an accountant? Think again. It may even make the difference between paying taxes & getting a refund. Besides, you may even get a new client & your accountant fees will have paid for itself.
If you happen to live in the Toronto ON area, I recommend the services of Bennett Gold ( http://www.bennettgold.com ) & SBLR Acumen ( http://www.sblr.ca )
Not to mention, now is an ideal time to market your on site massage service to local accounting firms who are working virtually 24/7 in April. Need a little os site tax time relief in the GTA, check out my corporate site @ http://www.inmyhands.ca