The tax season is coming up, it’s here! If you own a small business this tax season, you need to be prepared with the most efficient way to deal with your personal taxes. This is why using GSP Chartered Professional Accountant Professional Corporation can help you to avoid additional expenses. Here is the checklist for your business for this tax season:
List your income and expenses for this year. List all the expenses you had during the year, and indicate why they were necessary. Make sure to include travel and any other service expenses that you had to pay through your small business account.
Record all sales and purchases
It is crucial to make sure that the records match what was listed on your income statement. This way, you can ensure equal calculation of taxes due on both sides.
Expenses & Credits
List down all the things you used or spent money on for this year. You should also list down any other services that were paid for through your business.
Record the credits that you should receive. For instance, you may get a credit for the meals you bought for your employees during your business trip.
Business Use of Home
This is an important section since this is one of the most common deductions. If you use any part of your home to earn income, whether it is through a daycare, an office, or any other type of business location, then you will be able to deduct expenses that were related to that business activity.
You may need to make adjustments to reflect changes in your business activity throughout the year. Allocate the change in your business activity monthly if possible. For instance, if you have a loss during the year, then calculate how much money was used for this loss. If it is less than $3,000 then you may not be able to claim it on your taxes.
Why Tax Preparation is Important?
We know this is a little bit late to be asking this question, but why is it important for you to prepare your taxes? This is because if you don't prepare your taxes then you will end up paying way more than you should. For instance, if the government finds out that you didn't file your taxes as it was supposed to, then they will charge a penalty for not filing them as it was supposed to. That means that you will have to pay a lot more money than what should have been paid.
What's so special about Tax Preparation?
Tax preparation can never be simple, but with a professional accounting firm like GSP Chartered Professional Accountant Professional Corporation, we can make sure that all of your taxes are done perfectly. We will also ensure that you get the most accurate amount out of all the taxes that you have to pay. We have a lot of experience in preparing tax returns, so we can promise that you will get the maximum return out of all your taxes.
We are here to help!
If your business is a partnership or corporation, then we suggest that you get in touch with a professional accountant to get the most accurate results. We at GSP Chartered Professional Accountant Professional Corporation will be more than happy to help you with all of your questions and concerns.