Accountant explains tax preparation for your small business

If you have a small business, it’s important to understand how Canadian income taxes are prepared and filed. Knowing what business expenses qualify as deductions and how to maximize those deductions can help you be successful. Fortunately, the team at Miranda Professional Corporation in Mississauga, Ontario, is here to help.  

Income taxes for small business

How your business is structured (sole proprietorship, partnership, or incorporated) will dictate the tax return you need to complete. Business income is reported on a T1 personal income tax form for a sole proprietorship or partnership. If your operation is incorporated, you’ll report income on a T2 corporate income tax return.  

What business expenses qualify as legitimate tax deductions

It’s essential to understand what business expenses qualify as income tax deductions so that you can bring all the correct paperwork with you to your accountant. Here are some things you can do to help make the process easier: 

• File all your receipts that are related to your business. 
• Know the rules around travel-related and business vehicle expenses.
• Check the Canada Revenue Agency website if you have any questions regarding the rules around a specific expense. 

Home-based business tax deductions

There are certain advantages to having a home-based business, including expenses related to homeownership and maintenance. Your accountant will be able to assist you with what home-based business tax deductions you qualify for. 

Using an accountant for your small business tax return

There are many benefits to using a qualified accountant to prepare your income tax return. Not only can you save time and potentially save money, but it can also assure you of accuracy. An accountant has the proper knowledge and experience to help you maximize your return and ensure everything is done as efficiently as possible. 

Call Miranda Professional Corporation today for your small business accounting needs

Not only can our team help you with your tax return, but we can also help you to properly manage your records throughout the year to help your business run smoothly and reduce the headache that can often occur at tax time. If you live in the Mississauga, ON area and would like to know more about our services, please call us today at +1 855-839-4969.