Get Ready for Tax Day in 2024 with HQ Accounting

Tax season is right around the corner. For most people, it’s an annual event—and something of a necessary evil.

For others, tax season can be a nightmare and cause undue stress. If you’re one of the latter, we are here to tell you it doesn’t have to be that bad.

For years our expert team at HQ Accounting has helped small business owners navigate the complex tax filing process so you can refocus your assets on more important things like improving sales, growing revenues, and creating a rewarding company team.

That is why we’ve gathered some essential resources, tips, and dates about 2023 taxes for companies.

Get Organized

If you’re taking your taxes seriously, keeping good records of your income and expenses is important. This will save time and money in the long run since filing taxes is easier once you have all your receipts organized.

To get started, make sure you have all your documents in one place, including any invoices or receipts from work-related purchases (like business lunches).

Once that’s done, it’s time for organization with spreadsheets or internal software. Use them to track how often each item was purchased or used throughout the year (and whether or not there were sales tax deductions). This will ensure accuracy when calculating what portion goes toward business versus personal use.

Set Up Your Account with CRA

The first thing you’ll want to do is get set up with the CRA. You can do that by registering for My Account, a free service that will allow you to access your tax information online and sign up for online mail and direct deposit.

This is a secure portal that lets you view your tax return’s detailed status and any notices you may receive about assessments or reassessments.

Businesses can access everything from payroll histories to corporate income taxes and excise duties through the CRA online system. You can do this by creating a unique username and password or by being a CRA sign in partner for a complementary online service.

You will need your CCRP information or a previous tax document to verify some information when you sign up. This is how the CRA sign in protects your identity from being stolen or misused.

Get a GST/HST Number

If you are a sole proprietor and don’t already have one, you’ll need to apply for a GST/HST number. You can do this by visiting the Canada Revenue Agency website.

Any business that pays GST/HST taxes has to file a return. You can use your Business Numbers or the corresponding GST/HST numbers whenever you need to collect, report, or remit due taxes.

You’ll need this number to clarify some of the more complex regional and territory taxes owed by your company. When you hire a quality team like our accountants in Niagara to help navigate your taxes, this number helps confirm certain factors that make filing much more manageable.

Will Filing Taxes Mean Getting Audited?

An audit is a process where a tax professional from the CRA will review your income tax return and compare it to the information you reported. Audits are generally performed when the CRA suspects that you or your business have understated income, overstated deductions or credits, or failed to pay taxes.

Filing your taxes does not mean you will be audited. Most of the time, this is a random selection, and you can quickly move through the process as long as your taxes are in order, including your HST reporting.

What Steps Do I Need to Complete?

Other than filling out the proper paperwork and submitting it on time, there are no strict rules for tax preparation. Oftentimes, taxes for companies require dynamic solutions because there are so many things to gather and record.

However, some general guidelines should be followed:

Step 1: Determine the type of tax return. 

Self-employed, sole proprietorships, or partnerships need to report business income on both the T1 personal tax return and Form T2125 form. You’ll use the T2 corporate income tax return form if your business is incorporated.

Step 2: Decide on how you’ll file. 

The easiest way to file taxes for companies is through the CRA sign in that our accountants in Niagara can use on your behalf electronically. Otherwise, you will need to file through snail mail or complete everything independently.

Step 3: Organize all your documents. 

Gather all your receipts, invoices, tax deductions, and the rest of your small business paperwork so you or your accountant can successfully file.

Step 4: Utilize tax credits. 

There are numerous provincial and federal tax incentives to help businesses of all sizes and industries. A professional accountant or bookkeeper can help you find these credits to lower your tax obligation when the deadlines arrive.

Step 5: Claim all tax deductions.

Any qualified business expenses should be claimed as a deduction. This will reduce your taxable income and ensure you have less to pay to the government. Again, an experienced and qualified accountant is the best option so ensure none of these deductions will raise any red flags.

How Does Hiring an Accountant Help?

The key to a successful tax season is to prepare all year round. Keeping your books updated and in order ensures you don’t have to worry about any filing dates because you can simply collate and submit.However, most business owners have a lot more to worry about throughout the year, and that is where our accountants in Niagara team can help. We have the expertise to guide you through every step of the tax filing process, from HST reporting to CRA sign in authentication and more. We will go through your documents with a fine-tooth comb so that all deductions, credits, and critical information have been appropriately filled out. Give us a call today at HQ Accounting, and let’s make this tax season a smooth and worry-free experience!