A tax accountant does more than prepare and file business taxes. They also serve as an advisor and can provide insight on how to keep accurate records or make a purchase or sale that could affect how much money you owe the Canada Revenue Agency (CRA). To get the most out of the services that your tax accountant provides, implement the following tips into your business plan.
Record keeping allows you to keep track of every dollar spent and earned. Records are also integral in filing an accurate and complete tax return. If your tax accountant is going to be conducting most of their services as it draws closer to tax time, you may be concerned about how your finances are currently being tracked and the methods that you have been using to record financial transactions.
A good tax accountant can teach you about some adequate ways to keep track of earnings and expenses. If you are the person who is solely responsible for keeping track of expenses, using an online banking program or a financial software program can be an asset to your company.
First, you will be reducing the amount of paperwork that your accountant will need to sift through at tax time. Next, you will be more likely to avoid making financial mistakes that could require your accountant to need to do more work. As a result, the billable hours that you will be responsible for paying your accountant will be kept at a moderate level.
Purchases And Sales
Some items that you purchase to operate your business could be written off as tax deductions. Selling items within your business could increase your profit margin or provide you with the funds that you need to buy something more useful to your business. If tax laws confuse you or if you are not certain about what types of investments to make, your tax accountant can guide you.
A tax accountant may consider the time of the year and the impending tax season when determining if a particular purchase will be in your best interest. They will also contemplate how the addition of an item could potentially help your business excel. This advice, plus your own judgment, can be used to make big financial decisions. Because it is fairly common for tax laws to change frequently, your tax accountant is the best person to look at your personal situation and guide you in making a choice that will not increase your tax liability.