Thank you for joining me for Part 2 of our write off series!
In our last article, we looked at The Single Biggest Mistake Entrepreneurs Make.
If you haven't check out Part 1, you can do so right here.
Let me first recap the definition of "write off".
A "write off" is an expense that is applied against revenues that reduces the amount of profit made, and the amount of taxes that are paid.
If you're not keeping your receipts, even for your smallest of purchases, then...
Every entrepreneur has their own reasons for going into business.
Some for personal wealth, others to provide the best they can for their families.
Some do it to pursue their passions or fulfill a dream, others to leave a legacy.
Regardless of the whys of the entrepreneurial spirit, there are tried and true methods to attaining that success – as well as all-too-common missteps.
Especially this one.
I owned a professional accounting firm for just over 10...
For better or worse, we humans are adept at making assumptions and trusting others, including when it comes to our tax preparer.
On a daily basis, we not only interact with dozens of other people doing their jobs, but we rely on the job they do.
We automatically assume that when others perform a service for us, be it checking the transmission or cooking up our restaurant order, those things are being done properly.
Only when the mistakes are obvious do we question it, and this is often due to...
In the course of our hectic lives, we rarely have time to register this one question as we interact with countless people performing a job or service for us: how qualified are they?
We assume the cook at the restaurant washed his hands properly, the taxi driver knows where he’s going, that our to-go order is perfect as we grab the bag.
We need to put some things at the back of our minds, even when those little concerns cross our minds, because if we thought about them nonstop,...
A common dream of many entrepreneurs is one day buying their dream home.
A status symbol for some, it’s the manifestation of years of hard work, determination and success.
Others just want a little corner of the world to call their own.
At last, you feel you’re there.
Off you go to your financial institution about that home loan.
They ask to see the financial records for the last two years, to ensure you’re making money and that you have ongoing...
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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