Most people consider filing tax returns to be a confusing, time consuming and arduous process. Some people actually fail to submit their tax returns due to this notion. When you are running a business, it is critically important that you meet all your tax obligations. This will not only help you to avoid the related penalties but will project your business as one that is reliable and complies by the relevant regulations. Being organized is a very important factor in filing your tax returns without hassles and delays. Besides being organized, there are several other steps that you can take to make the entire process seamless.
Keep a separate file of all taxation documents
It is important to ensure that you keep a separate file for all the documents relating to taxation. Whenever you have health-care claims, receipts, share dividends, superannuation payments or records of extra income, you should keep them in a special file. When the end of the financial year approaches, you will not have to run around seeking to compile this information. You will simply reach out for the taxation file, making the process of filing your returns time saving and relatively easy.
Have complete and accurate information
One of the factors that will delay the filing of your tax returns is having incomplete or inaccurate information. This is why you should strive to ensure that all accounting and bookkeeping records are not only complete but are an accurate reflection of the finances of the business. In case you cannot handle these tasks in-house, it would be better to hire a professional accounting firm.
Consider submitting returns online
Today, thanks to technology and the internet, taxpayers in Canada can submit their tax returns online. This method of filing tax returns is efficient, fast and free. The platforms used in the process will give you information on how tax laws apply to your business as well as help you calculate your refund or liability. The good news is that you will be able to do this without having to consult a professional. This gives you the convenience of a fast and hassle-free process.
Get a professional tax agent to handle the process for you
If you find the process to be confusing or time consuming, you can hire a professional tax agent to handle it for you. If you want to submit your returns in a timely manner, you should consider letting your accounting firm to file the tax returns. This is because the financial statements they present to you after balancing your accounts will contain information on your income. With this information, the finance professionals will be able to plan effectively for your tax obligations.
Avoid procrastinating or rushing
Procrastination and rushing are two factors that are closely related when it comes to submitting tax returns. Most business owners tend to put off this process until the deadline draws too near. When they have limited time left, the only natural thing to do will be to rush over the process in order to beat deadlines and avoid penalties. Procrastinating and rushing the process of filing tax returns are likely to be characterized by inaccuracies and incomplete information. This has the potential to make the process unnecessarily long and stressful.
At Padgett Business Services, we offer a variety of financial and tax services to ensure that you have enough time to focus on growing your business. Our professional accountants will see to it that all plans are in place so that the process of submitting tax returns is hassle-free and is done in good time.
About the Author: Gerald Hunt
After graduating from the University of Calgary with a Bachelor of Science degree in Computer Science, Gerald joined KPMG (Formerly Thorne Riddell) as a Computer Accounting Customer Service representative. In this position, Gerald installed accounting systems in over 200 different small to medium sized companies over a 6-year span. In 1989, Gerald left KPMG to continue working with small business clients in his own corporation, installing computer accounting systems. While in this role, the DeVry Institute of Technology in Calgary engaged him to teach various courses. In time, Gerald moved up through the ranks of DeVry until he attained the position of Director of Finance for the Calgary Campus. He also acquired his Masters of Business Administration from City University of Seattle, Washington in 2001. Gerald’s career has always been focused on small business, accounting, and education. Need accounting help? Visit Padgett Business Services, and book a free no-obligation one-hour consultation.