Basic Tax Planning Strategies for Small Business

May 28th, 2022
Basic Tax Planning Strategies for Small Business

As a business owner, you are likely always looking for ways to save money and reduce expenses. One of the most pivotal times to have this mindset is during tax planning. Understanding your deduction options, accurately tracking expenses, and working with a professional can save businesses thousands of dollars every tax season.

As you prepare your business for the upcoming tax season, here are some effective strategies to keep in mind.

Track Every Expense and Invoice

Without an organized record of all your invoices and expenses, it is impossible to accurately file your taxes. Therefore, businesses need to be reviewing all of their financial records daily, weekly, monthly, quarterly, and yearly.

Knowing what expenses you can deduct from your income is one of the main contributors to lowering your taxes.

Look For Deductions From Other Sources

The Canadian government offers start-ups and small businesses a plethora of deductions to reduce their taxes, so it is wise to look into these. For example, expenses incurred related to start-up fees, vehicle costs, paying employees, and office expenditures can all likely be used as deductibles.

Before you begin your business, you should seek professional advice regarding the best way to claim the most deductions from your income.

Seek Assistance From a CPA

The single best strategy to pay fewer taxes this upcoming tax season is to work with a professional. At HWGCA, our team of chartered professional accountants works hard to save you money. From bookkeeping services to payroll management, and tax assistance, our team helps you find unique effective tax strategies and cash flow opportunities.

Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.

Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.