Are you feeling overwhelmed with the tax season upon us? Do you find yourself unsure of when, how, and what to file? Don't worry! We're here to help you with our step-by-step guide on how to file your taxes.
Step 1: Determine Your Filing Deadline:
As a business owner, you need to know your filing deadline based on your situation. If you just started your business last year, you need to determine when your taxes are due. For instance, the deadline to file taxes for the 2020 year is April 30, 2021. However, if you or your spouse is self-employed, the deadline to file your taxes is June 15, 2021, but all taxes owed must be paid by April 30, 2021.
Step 2: Know Your Business Structure:
It's essential to know your business structure, whether you're a sole proprietor, incorporate company or contractor. Each structure has its unique way of filing and paying taxes. If you're unsure about your business structure or need help with filing, it's best to consult with a professional accountant or bookkeeper.
Step 3: Seek Professional Help:
As a new business owner, you may find it challenging to file your taxes without professional help. The Canada Revenue Agency (CRA) does not accept a lack of knowledge or information as a valid reason for late filing or incorrect paperwork. A certified bookkeeper and accountant can help you navigate the process, save you time and money, and provide expert advice.
Step 4: Save on Taxes:
While it's essential to save on taxes, not investing in a professional accountant or bookkeeper can lead to costly mistakes. Hiring professionals can help you save more than double their cost and many hours of frustration. You can then spend that time focusing on securing new business and resting.
Step 5: Stay on the Right Side of the CRA:
It's critical to stay on the right side of the CRA. You don't want to face penalties, interest charges, or an audit for late or incorrect filing. Seeking expert advice and accountability for these deadlines can help you avoid these issues.
In conclusion, filing your taxes can be challenging, especially for new business owners. However, by following these simple steps, you can ensure that you file your taxes correctly, avoid penalties and interest charges, and save on taxes. If you need help with your taxes, don't hesitate to seek professional advice. Book an introductory chat with Censea today!
