Tax Tip Thursday

September is not tax season, but it is one of the most important months for tax strategy.

The kids are back to school. The majority of vacations are over. Business is picking up again (unless you have a seasonal business). By this point in the year, your business has a clear financial rhythm. You’ve seen what’s working, what’s not, and how your income has shifted since Q1.

But too often, this is when business owners put their heads down and push through the end of the year – missing key opportunities to make smart tax decisions while they still can.

I have had clients come to me in January frustrated because they could have lowered their tax burden if they had acted just a few months earlier.

Right now, is the time to plan. That might mean optimizing how you are paying yourself, adjusting estimated payments, or timing a few major expenses based on how your year is shaping up.

Tax planning should not feel rushed or reactive. Done right, it is an annual or semi annual activity, just like forecasting or cash flow strategy.

If you have not looked at your year’s financial results, now is a great time. April might feel far away, but the window to make meaningful changes closes fast.

Considerations such as….

• How profitable is your business YTD
• What is your expected full year profitability going to look like
• What is your business tax bill going to be – Corporate, Personal AND HST.
• Have you made instalments
• Should you have made instalments
• How will I pay my tax bill
• How do I pay myself
• Are there any ways to mitigate my tax bills that might be coming
• What is my expected business cash flow for the next 6-8 months
• What are my expected cash requirements for the next 6-8 months

As a business owner, these are all very important questions that you need to be able to answer.

And of course – we can help you with that!

The Mad Accountant offers what we call a Mid Year Review Package.

Although we are in September, we are 7 months away from your personal and Sole Prop tax payable dates (April 30). Most corporations have a December year end and your taxes are due in March. This is the time to know what is going to happen! Give yourself some runway to prepare for those bills. They ARE coming!

We will sit down with you and go through all those questions and help you identify a strategy to address those questions. This will give you peace of mind going into the last quarter of the year, knowing you have a plan in place to maximize your profits and minimize your taxes AND a financial budget that you can execute to success!

Book your mid-year review today!  Make An Appointment today!

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.