Getting ready for tax season
Yup, its TAX time!
We find that this season typically creates one of two responses: “absolute dread” and a desire to put our heads in the sand, or “excitement” in knowing a check is coming and you can preplan where that money will be spent.
If you find your normal approach isn’t helping you to get the tax results you want, and if learning and navigating through ever changing tax rules and deductions isn’t your cup of tea, let us get you started. Here are a few great tax tips to point you in the right direction this tax season, especially if you are a small business owner looking to embrace a mindful relationship with money and taxes.
Keep track of ALL your business expenses, even the little ones because they all add up. Be aware that it’s critical to keep every receipt, even if it doesn’t occur to you that it could even be an expense. There are a variety of expenses that you could be using that you likely don’t know about. So ask for and keep ALL receipts- ALL THE TIME!
If you are collecting GST/HST on sales, make sure you have copies of expense receipts that show the GST/HST . . . not just the transaction slip that shows money was taken out of your account.
If it is not really obvious what the receipt is for, write clearly on the top or back so that it isn’t a guessing game when it’s time to tally up your expenses. If the printer ink has run dry, ask the establishment to print your receipt again. Keep receipts in the best condition as possible because if they are not readable, they are not usable.
If you take a client or team member to lunch, write their name on the back of the receipt. It is easy to do that when you are waiting for the server to bring the payment machine. The reality is, no name means it’s not a legitimate expense. Additionally, there are different expense rates based on what that person’s relationship is to your business.
Find out about more the legitimate and often overlooked expenses you can claim and use that to your advantage. Consider keeping last year’s tax return to review with someone knowledgeable, to determine if there are potentially overlooked deductions that you can carry forward and use this year. Every business has very unique (and often overlooked) expense related to it. Every expense you can claim reduces your business net income. This total is what you are taxed on so, more expenses means paying less tax remittance. Having a ethical and mindful approach to Taxes and Monday isn’t at all about paying more!
Doing your own taxes may seem like in industrious way to save money, right? Not likely! The reality is that times change, practices change and deductions are constantly changing. Unless you are keeping on top of these ongoing changes, you are very likely missing crucial opportunities.
Like in all business dealings, you may not even realize where you are short changing yourself and letting money slip right through your fingers. Using the appropriate professional services will actually save you time and money. Additionally, we can teach you how to create and use a basic system throughout the year, making your taxes preparation a breeze.
It’s empowering to get involved in tax season, so that you can learn more about your money the tax process. Every year is a chance to start fresh, gain knowledge and become more conscious about your money and business dealings. In fact, even though we may need to pay money in our tax remittance, in some way we are keeping the healthy flow of money moving in and out, rather than it becoming stagnant. Pause and consider, that you would not even have to pay out if you didn’t receive income in the first place. When considering the big picture, isn’t that something we can in part, feel grateful for? So when doing your taxes, we feel knowledgeable prevention is the best cure while gratitude is the best energy.
Let Global Alignment’s “Tax Guru” services help you take the stress out of tax time. Equally important, she will approach your personal or business taxes from a place of integrity, helping you to cultivate a “mindful money” mentality. For more information, MANY more tax tips and a great tax experience, contact us at firstname.lastname@example.org