Dec20th
Saturday, December 20th, 2008
Many of the residents of Clayton Heights that I have met throughout the year are small business owners. For some of you this business operates part time out of your home, and for others your business is your sole source of income. Your businesses provide an important source of income, they provide tax benefits, and even more importantly they provide a source of accomplishment. Operating a business requires a huge investment in time and money, it takes determination, it demands integrity, and it requires community involvement. For those of you who started businesses this year, whether it has been profitable from the start, or you are yet to earn a dime you should take pride in your accomplishments and never give up. For those of you with businesses that have been in operation for many years never forget the experiences that you’ve had. Ensure that you take the time to remember where you came from. Remember the trials that you’ve been through, and the successes that you’ve achieved. This is how we improve, by learning from our failures, by analyzing our successes, and above all, by remembering all the individuals who have helped us to get where we are.
With the year now drawing to an end here are a few key tips that will help you to prepare for tax season.
1) Ensure that all invoices & receipts are kept in an organized fashion and that they are clearly marked as a businesses expense. For example meals & entertainment should have it’s own envelope or file, and you should write the reason for the expense on the receipt along with any other notes that might be important.
2) Locate all important documentation such as your prior year Tax Return, Notice of Assessment, Tax Installments (if any), Articles of Incorporation (if any), business registration, GST returns, larges purchases (i.e. Vehicles, computers, equipment), etc.
3) Make note of percentage of business use for your vehicle, and percentage of business use for your home. (Don’t forget to write down your odometer reading on December 31st)
Please feel free to call or email us with any questions that you might have so that you can be adequately prepared for your year-end whether it is December 31st or any other time of the year.
Matthew Birch has ten years of accounting experience with many companies varying in size from 1 to over 100 employees. He has worked with organizations in many different industries ranging from service to wholesale and retail sales and from construction to manufacturing. Serving the accounting needs of Metro Vancouver Matthew owns and operates Birch Accounting & Tax Services from his home in Clayton Heights Surrey. To contact Matthew regarding any of the services offered by Birch Accounting & Tax Services please call 778-786-1440 or email accounting@birchent.org.
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Dec20th
Saturday, December 20th, 2008
1) If you have never made a contribution to your RRSP now is the time to start. You do have until 60 days into 2009 to make contributions for your 2008 tax year, but the sooner you start the easier it is. Among other benefits you will immediately be able to deduct the contributions against your 2008 income.
2) A new alternative to the RRSP is the tax free savings account(TFSA). This plan allows an individual 18 years or older to contribute up to $5,000.00 (after tax income) per year to RRSP-like accounts (ie mutual funds, GICs, bonds etc.). The income generated would then be tax free. For more details go to the Canada Revenue Agency website at http://www.cra-arc.gc.ca and type “Tax Free Savings Account” into the search field.
3) Consider making a donation to a registered charity. Donations have the greatest tax reduction of any expense. The first 200.00 of contribution produces a Federal Tax credit of 15%, but any amounts greater than 200.00 are calculated at the top Federal Tax rate of 29% regardless of what your income level is. The provincial tax credit is calculated the same manner.
4) Begin organizing your paperwork now. The sooner you begin to organize your paperwork the easier it is to complete your return. Remember that a large majority of people actually do get a refund on their tax return so the sooner you receive your refund the better. Secondly the advice I give all my clients is, “The best tax advice is tax planning.” It is easier to plan than to react
5) If you are young and have only earned a few thousand dollars it is still in your best interest to file a tax return. This is good for a couple of reasons:
a. You will have to do so in order to get back any taxes that have been withheld from your employer
b. To be eligible for a GST credit you must be 19 years of age, and have filed a tax return.
c. The other benefit is that you create RRSP contribution room.
If you have any questions regarding tax planning, or would like additional information on the topics I’ve discussed please feel free to contact us by phone at 778-786-1440 or email at accounting@birchent.org.
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Aug1st
Wednesday, August 1st, 2007
Accounting — Your Management Controls
Would you ever drive your car blindfolded? Obviously, not!
Nonetheless, every day millions of business owners drive their businesses without knowing their financial locations: where they have been, where they are, and where they are going. That sure sounds blindfolded to us.
As your profit and growth expert, our primary role is to ensure that you have the historical data that will tell you where you have been and where you currently are. With that information we can provide a professional consultation that will help you determine where you want to go while creating an action plan that will help you get there.
With this 360 degree view of your business, you can plan effectively and then track your progress against your goals. It will also help you anticipate obstacles so that, when encountered, you can easily maneuver around them rather than allowing them to slow you down.
With our help you can’t go wrong.
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