Our Fall Tax Tip? Start Prepping For Tax Season Now

startpreppingtaxseason.jpg

The tax deadline may still be six months away, but the end of the fiscal tax year is just around the corner. Rather than waiting until the hectic tax season hits, now is the time to set yourself up for success and review your tax situation or any questions you may have for your small business accountant. Here are four fall tax tips you can use to ensure you’re on track to meet your small business objectives for 2016 and minimize the income tax you’ll have to pay come April.

  1. Maximize Deductions and Capital Cost Allowance: If you have any large purchases planned for your business in the near future (new equipment, advertising costs, etc. ), consider making them before the end of the year. If you have money to spend on your business, might as well spend it now to maximize your deductions.
  1. Delay or Defer Income: It may sound counterintuitive, since the goal of every business is to maximize revenue and profits, but if you can find ways to defer payments to January (and it makes financial sense to do so) you can effectively reduce your 2016 tax bill.
  1. Get Organized: Even the most diligent entrepreneurs can get a little unorganized from time to time. Instead of scrambling to collect all your receipts, financial statements and deductions when you’re up against a tight tax deadline, get your paperwork in order now. Not only will you (and your accountant) thank yourself come tax time, if you’re missing any important documents or paperwork you’ll have plenty of time to find and prepare them before you have to file your return.
  1. Start Planning for the New Year: Now is a great time to make sure your i’s are dotted and the t’s crossed when it comes to your business plan and objectives. Take some time to review what you’ve achieved so far and what you need to do to prepare for 2017 and start the year off with a bang. Prepare a plan of attack with small bite-size actionable steps and get started today.

The end of the fiscal tax year is coming up quick and before you know it you’ll have run out of time to get yourself organized and improve your small business tax situation. Take our advice and spend a little time getting prepped this fall; it will save you a whole lot of headaches come tax season.

And if you’re a small business owner in the Greater Toronto Area who has any questions about your small business accounting or taxes at any point throughout the year (not just during tax season crunch time) give Ken and the Blue Sky team a call. We’d be happy to help: 289-466-521