One of the many responsibilities that entrepreneurs have to fulfill when operating their businesses is filing annual income tax. While it can be overwhelming to manage business taxes as filing errors and missing deadlines can cause detrimental consequences to the enterprise, it is among the business aspects that help a business comply with regulations, which also enables them to grow and succeed.
Canadian entrepreneurs should not find tax season stressful. Tax filing for small businesses can be made easier by making preparations throughout the year, keeping track of business transactions, remembering important dates, and consulting tax experts.
Keeping track of business expenses as well as other financial transactions is an administrative task that business owners need to accomplish not only to grow their enterprises but also to ensure regulatory compliance. Thanks to modern technology, various software tools available today made it easier to conduct certain tasks. Among the software tools that business owners can utilize to expedite their business operations are the free invoice maker app and the accounting app.
An invoice maker software can help entrepreneurs efficiently create, send, and track client invoices. Accordingly, small business bookkeeping app can enable them to track and categorize expenses as well as analyze their financial transactions and statements.
In addition, as these accounting tools enable businesses to have correct and up-to-date financial and accounting records, entrepreneurs can use them in planning their taxes accurately and correctly. This is because accurate and current records can simplify the tax filing process and help avoid being scrutinized by the Canada Revenue Agency (CRA).
But, aside from ensuring accurate financial data in their tax forms, small business owners should also maximize various tax deductions to reduce their tax liability or even get a tax refund. They can save money, which they can use to ensure a healthy cash flow for their business.
Entrepreneurs are well-familiar with the common business expenses that are considered deductibles. Read this infographic from KIPPIN to familiarize yourself with the business tax deductions that small business owners commonly overlook.