When you have just launched a very small company, you wouldn’t much about filing taxes. You are bound to face a few challenges when you try to file taxes for the first few times. There are certain complexities involved in paying taxes. However, it is something that needs to be done. While having financial experts around you will help, there are several things you must be aware of yourself regrading Small business tax Calgary.
If you take the right steps and follow appropriate methods, the process would turn out to be quite smooth and efficient. If you need some help or information with small business tax in Calgary, you should get in touch with Versatile Accounting & Tax. You will get all the important information pertaining to the company on its official website www.versatileaccounting.ca.
Here are 4 important tax filing tips for small businesses:
Hire a Good Accountant
All your worries related to filing taxes will vanish if you manage to find a good accountant and get them to handle the company’s accounts and finances. Many small businesses make the mistake of not hiring an accountant and this leads to them facing several issues over a period of time. Apart from preparing financial statements, a qualified accountant will guide you while filing taxes and ensure that you don’t take any wrong decisions during the process.
Learn To Differentiate Between Gross and Net Income
When you spend a certain amount of money to manufacture, package and distribute a product, you have to sell it at a higher price to be able to make some profit on it. If you manufacture a product at $200 and sell it for $300, your gross income would be $100. However, the net income, after deducting different kinds of expenses, could stand at $30. Many small businesses suffer while filing for their taxes as they don’t know the difference between gross and net income.
Maintain Financial Records
Maintaining financial records regularly is a must for every small business. A business, which operates on a smaller scale, has to be very careful about its expenditure. If you maintain financial records and accounts regularly, you will be able to exercise a good amount of control over your finances. It will also prove to be extremely helpful when you file your taxes.
Do Not Mix Business and Personal Expenses
Mixing up your business and personal expenses proves to be a terrible idea for multiple reasons. Apart from making it difficult to track your company’s expenditures, this also creates an issue when you are filing your taxes. When the IRS audits your Small business tax in Calgary and finds personal expenses and business expenses being mixed up together, it will start looking into the transactions made by you through your personal accounts.
John Healar is an author of this article.To know more about Small business tax Calgary please stay with our website:versatileaccounting.ca
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