The Beat Spring 2020 Volume 5, Issue1

Tax season is afoot.
Are you ready?
By Scott Armstrong
Tax season is one of the busiest
times of the year for accountants
and entrepreneurs alike. Running
a business while preparing your
end of year tax information can
be a monumental task. The key
is to ensure your bookkeeping is
current and that you have the right
accounting team in place. Here are
a few tips to help you prepare:
File your returns on time
Filing your returns late will cost
you in penalties and interest
and can draw unwanted audit
attention to your file by the CRA.
Be organized
It will save you money on fees
and allows your accountant to
spend more time on ensuring
your tax position is optimized and
less time organizing a shoebox of
receipts.
Use a cloud accounting
software solution
QuickBooks Online or Xero are
both great software solutions
that can reduce time spent on
accounting and ensures you
are organized come tax time.
They even give you the ability
to snap photos of your receipts
and link them to the associated
transaction in your data file,
keeping your records audit ready.
Be aware of your eligible
deductions
Three deductions that tend to
be the most contentious and
sometimes overlooked are
business use of home (including
internet), business use of vehicle
(remember to keep a travel log),
and meals & entertainment
expenses. If you aren’t sure
what expenses are eligible for
you to deduct, reach out to your
accountant and educate yourself.
April 30th vs. the June 15th
filing deadline
While self-employed
individuals (and their
spouses) have until
June 15th to file their
personal tax returns, all taxes
owing must be paid by April
30th. This comes as a shock to
many. While there will be no late
filing penalties for filing prior
to or on June 15th, the interest
clock starts ticking May 1st on
any outstanding personal tax
balances owing to the CRA.
See the link below for more
details about applicable penalties
and interest charges:
https://www.canada.ca/en/
revenue-agency/services/tax/
individuals/topics/about-your-taxreturn/interest-penalties.html
Finally, don’t forget to reach out
to your accountant throughout
the year
If you have any bookkeeping
or tax questions. It is always
cheaper and easier to ask a
quick question than to make an
incorrect assumption all year
long. Tax time becomes far
less stressful the more you are
prepared.
Scott Armstrong
1407 Talcy Crescent,
Orléans, ON K4A 3C5
613-292-2489
armstrongfinancial.ca
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