Tax Tip Thursday

This is a great time to get your business organized and it does not matter if you are a sole proprietorship, partnership or corporation (or even an employee with employment expenses)!

Things usually start to slow down now, so take advantage of the lull and pull together your bookkeeping. You can organize 11 months of the year right now and you will only have one month left to organize in January (assuming you are on a December 31 year end). Personally, I have a June 30 year end for my business, but I still make sure I am up to date at this time of year.

Some areas to focus:

• Statements and Paperwork
  • Make sure you have the appropriate receipts and documentation supporting every line of your bank account and visa statements.
  • If you are using an accountant, download all the statements to excel. They will thank you!
• Reconciliations
  • Make sure your bank accounts and visa accounts are all reconciled. This ensures that you are not missing any income or expenses from your books.
• Categorize and total all your expenses
  • If you are using your business bank account for personal expenditures, make sure you identify the personal expenses (and open another account and stop mixing your business with your personal!)
• Keep a mileage log
  • Make sure you have one of these. It should include your beginning mileage, your business mileage, and soon it should also have your ending mileage for the year.
  • Depending on your business structure, there are different ways you can handle the expenses associated with your vehicle. Ask me! I can show you your options.
  • Do not ignore this! It is important and can LITERALLY cost you THOUSANDS of dollars! I cannot emphasize this enough! It WILL FOR SURE either save you money or cost you money!
• Get your accounting done early in January and be done with it! Why?
  • You will know your tax bill ahead of when it is due,
  • If you are getting a refund, you will get it earlier,
  • it is done and out of the way so you can focus on your business and the new year, and
  • last but not least, you will be doing your accountant a HUGE favour!

… AND ONE MORE REASON TO DO IT IN JANUARY… We are offering a 20% discount on the preparation fees for Sole Proprietorships and Rental Properties!

If this is all overwhelming for you, I can assure you, it will not get any better by waiting! If you do not know where to start or cannot get motivated to do it, give me a call and I will help you.

I am here for you!

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.