5 Things We All Hate About Tax Time

The tax discussion can in some circumstances trigger anger and distrust towards the government, not only in Canada but most countries that have the same system. Some of the population have at least a few issues to say the least, with how the governments use our tax dollars.

Let’s be honest most Canadians hate tax time. With April 30th looming fast, most of us are preparing our documents and T4s so that maybe this year we will receive that tax return and not a penalty. Especially if you own a business. You will find yourself in your basement or home office, scouring through box after box of receipts and invoices from the past 12 months. Its time consuming, frustrating and something we all just hate having to do.

Book Your FREE Tax Consultation Today!==> https://rcpenner.com/bookkeeping

If you read my blog last week you will know we talked about bookkeeping and what you can expect from hiring one. The one thing it will stop is searching endlessly through those receipts and invoice boxes we mentioned above. Your bookkeeper will have taken the time all year to prepare your books. Which means your receipts have been recorded, your business visa cards, and bank statements will have been recorded and reconciled. So, no need to iron out those screwed up receipts you tossed in a box last January. It is all done for you. But just in case you need a little more advise keep reading.

Let’s take a look at 5 things we hate about tax time and how we can make it easier:

1. As mentioned above keeping every receipt and invoice that you collect over the past 12-month period, is really not the best way to go when filing your taxes.

Hiring a bookkeeper will eliminate this stress with an added bonus of knowing how your business is doing. You will receive feedback on the financial health of your business throughout the year. While making filing your taxes as easy as 123.

2. Having that constant worry of a possible penalty at the end of the year. This is one that most people really hate about tax time.

This is a simple fix. When it’s time to file your taxes make sure your accountant has everything, she needs to be able to file an accurate return and if necessary, paying your tax bill by the due date or even before.

Rebecca C Penner CPA, CGA ==> https://rcpenner.com/contact

3. Having a possible Audit is worrying to most businesses. Not knowing each tax time if your company is going to be flagged is not a good thought.

What can you do to help alleviate the stress if this situation ever did occur? It all boils down to the same message. Follow the rules when it comes to filing your tax returns. Always use a professional to help you with filing each year’s tax return. As well as keeping your books up to date. If an audit is flagged for your business, then what you have done in regard to filing your tax and keeping your books up to date in the past will be detrimental.

4. Remember the tax dates. When you can start filing and when the deadline is.

If you have an accountant, this part is easy for you. You will have had some correspondence with your accountant as to when they need your paperwork in to be able to file your taxes. The earliest you can file your taxes in Canada is February 21st (electronically), with the last filing date being April 30th.

5. Doing your taxes and getting the news that you have a penalty to pay. One thing that all tax paying citizens hate.

This is something that is out of your control. We know it’s not pleasant to receive that bill, but it needs paying and on time. Don’t wait on this one. Pay your tax bill on time every time.

Last thoughts:

On a last note: Paying taxes is something we all have to do. It’s not a subject most of us like to talk about. But it is part of our society and most of all it’s the right thing to do.

If you need help with your tax returns, please don’t hesitate to contact me. We can set up a FREE consultation to discuss your specific needs and then come up with an action plan.

Thank you for taking the time to read my article.

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Sincerely,

Rebecca C Penner CPA, CGA