It’s a lesson that every business owner has to learn.
For some, it comes after the first year in business when the realize they weren’t prepared, or after a few years of struggling to stay afloat.
For others, it’s something they take time to learn early on, and these entrepreneurs have a much higher shot at success.
It’s a little like when your kids go out to play in the yard.
Owing the CRA happens when you’re in business. No brainer, right?
It is, once you learn that this is how the system works.
For new, inexperienced solopreneurs in particular – such as those with home-based side businesses- it can be a shakeup to realize that you don’t pay taxes like you used to.
There’s no employer to deduct tax for you.
Moreover, if you haven’t tracked your expenses properly all year, the tax bill could be shocking.
The Income Tax Act is A HUGE act.
At its core, it stipulates that what you claim on your business taxes must be reasonable.
Also, that you are responsible for being honest with your submissions, and that by claiming deductions, you not only understand why they are reasonable, but can prove them to be so through supporting documentation and receipts.
Disclaimer: this article pertains to business tax returns. For personal tax, software programs tend to be okay- because there...
Which means there are a lot of business owners trying to get their business paperwork together so that you can file your personal taxes.
As a tax preparer, there are a lot of mistakes I see business owners make, which inevitably causes them to pay more tax.
This is my “Top 9” list, which also gives you a few “insider tips” as well!
Sometimes, business owners try to put their charity...
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