A Two-Part Series
We started the conversation on the Benefits of Tax Planning within your business as part of our MINIMISE YOUR STRESS, mind your business Series.
We are happy to provide you with the next 5 tips to save on your business taxes, straight from the pros at Robley Baynes Tax & Accounting Services
1. Keep Your Records Organized
Don’t lose time running your business in January and February by scrambling to get your books and receipts together for tax preparation.
Get organized now and stay organized. Clean books and detailed supporting documentation will ensure you take advantage of all tax incentives and avoid late filing penalties and will keep your tax preparer fees down.
2. Hire Independent Contractors Instead of Full-Time Employees
The benefit to having independent contractors instead of employees is that you can hire them for work based on your needs, so during times you don’t require much labour, you do not need to keep them around.
You also can exclude them from your employment costs, such as PAYE, and Health Surcharge, company retirement plans, and other employee benefits such as medical, life and disability insurance, and vacation or holiday benefits. There are some legal requirements that you need to abide by, so you’ll need to make sure you stay in good legal standing.
3. Know All Deductible Expenses Your Business Can Qualify For
All businesses are always looking for ways to minimize their tax obligations by taking advantage of all business deductions that are allowable by the government taxing agencies.
Make sure to know all deductible expenses that are directly attributable to operating your business and don’t forget to include them when filing.
4. Consider Using a Tax Professional
Even if you think you can manage to prepare your taxes on your own using one of the online forms.
A Chartered Accountant (CA) or other tax professional is usually more affordable than you think.
An experienced tax professional has seen everything and knows how to get you the most favourable tax deductions and benefits. This usually saves the taxpayer or business in the long run.
5. Forecast Your Business Cash Flow
Build a cash flow forecast to estimate your tax impact and prepare for your payments as well as your deductions.
Modelling out the flow of your receivables and payables alongside your budget and sales pipeline will not only help you at tax time but forecasting all those key factors in your cash flow will help you thrive and grow your business year