Mississauga, ON accountant explains the importance of correct tax preparation for businesses
Whether you are a new business owner or have been running a business for many years, business tax preparation can be a stressful, hectic time. Preparing your taxes in a correct and timely fashion is of great importance for the financial future of your business. At Miranda Professional Corporation in Mississauga, ON, we have over twenty-five years of experience in helping businesses maximize their deductions and minimize the amount of taxes they need to pay. Our team of accounting and business professionals has have expertise in business taxes necessary to make filing easy and streamlined and provides bookkeeping services to help you keep accurate financial records throughout the year. With accurate tax preparation services from a company you can trust, you can focus your attention on what is most important – keeping your business running smoothly and taking it to the next level.
Importance of correct tax preparation for businesses
All businesses must pay taxes, but when you work with professionals who have an extensive background in business tax preparation, it puts you one step ahead. Working with tax professionals can not only ease your worries about tax time, but also ultimately save you time and money. When you take on tax preparation for your business by yourself, you are putting your business at risk of tax errors, which can be a big liability for your business and result in adverse consequences and fines. When your taxes are correct and there are fewer red flags, you may be less likely to be selected for an audit—which can be extremely time-consuming and costly. Additionally, when you prepare your taxes in a rush or without knowing all of the ins and outs of the tax legislation, you may miss out on important deductions that are applicable to your business, and end up paying more taxes than you really need to.
How to prepare for filing your business taxes
It can be confusing to even know where to begin when you are dealing with business taxes, and it can involve an extensive amount of paperwork and requires meticulous financial records. Each business tax situation is unique, so you will first need to determine which tax return you need to file. Some small business owners can report their business income on their personal income tax forms, whereas other businesses have much more complicated filing requirements on a corporate income tax return.
Another important aspect of your tax return is your deductions, which save your business money. Our tax professionals can walk you through what deductions are applicable to your business, as well as how to report them.
To file your business taxes, you will typically need the following records:
- Your Notice of Assessment and/or tax return from last year
- Information on any taxes that you have already paid by installment
- Financial statements, such as balance sheets, profit-loss statements, cash flow statements, and income statements
- Business expense information, such as travel, office, and advertising expenses
- Payroll expenses if you have employees
- Information on any assets that were added to your business this year
- If you use space in your home for your business or operate solely out of your home, information on this for deductions is needed
At Miranda Professional Corporation, we work with you throughout the year on planning your taxes by frequently reviewing your tax returns and assessment notices, conducting strategic planning for your unique business in relation to the current tax laws, and performing a comprehensive assessment of your tax reporting requirements so we can ensure that your taxes are complete, correct, and on time. We also offer bookkeeping services to help keep your financial files in scrupulous order throughout the year, which makes filing your taxes simpler and more accurate.
It’s never too early to get your files and financial records in order
If you own a business and have been struggling to keep up with your tax-related paperwork or filing your taxes on time, it is never too early in the tax season to begin working with tax professionals to get your files and financial records in order. Ease your tax-filing stress by working with Miranda Professional Corporation. Call us today at +1 855-839-4969 to schedule an appointment to learn how we can help!
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