Business

What are 3 Steps To Take Before Filing Taxes?

About 65% of business owners hire experts for tax filing in Saskatchewan. That’s mainly because taxes mean complications and the owners want to avoid that. Tax professionals ask relevant questions or use records to complete questionnaires before the tax process. The entire process can go smoothly if you are prepared beforehand, whether you do your taxes on your own or hire a professional. So, let’s check out the three main ways you can prepare yourself for the tax season. 

  1. Keep all required documents handy 

The CRA requires specific completed forms along with supporting documents to complete your return. So, here is the basic tax checklist if you are doing tax filing in Saskatchewan

Personal information 

  • Social insurance numbers for your spouse, yourself and other dependents 

  • Family members’ dates of birth 

  • If you are claiming credits, know your net income amounts for your spouse and other dependents 

  • Installment payments made to CRA 

  • NETFILE access code 

  • Last year return’s Notice of Assessment 

Income Slips 

You have to submit various forms depending on the type of income your business generates. Examples of the most common forms include:

  • T4 Statement of Remuneration Paid 

  • RL-1 Employment and Other Income (for QC)

  • T5013 Statement of Partnership Income 

  • T5008 Statement of Securities Transactions 

  • T5 Statement of Investment Income 

  • T4RSP Statement of RRSP Income

  • T4A Statement of Annuity, Pension, Retirement and Other Income

Expense receipts 

Keep all receipts relevant to your business operations throughout the year. That’s because the CRA provides eligible candidates with a slew of deductions and credits. This in turn reduces the taxes you owe. Examples of expenses that you must keep include T2200 employment expenses, tool expenses, childcare expenses, home accessibility expenses and more. You can ask your team of accounting and bookkeeping in Saskatchewan to take care of it. 

  1. Plan for your refund beforehand 

Talk to your tax consultant to see if you should expect a tax refund. If yes, there is an option for you to apply some or the entire refund towards next year’s taxes. Let’s say you pay estimated taxes throughout the year. In that case, it will help you pay for your first monthly quarterly installment. The Canadian government may deposit the amount directly to your savings account or send a paper check through mail. If you have hired a tax consultant, let them know what you want to do with the refund so they can prepare the taxes accordingly. 

  1. Get hold of last year’s return copy 

There should be relevancy in the information you provided last year and the current year’s return. Let’s say you mention the banks and other financial institutions who sent you 1099 forms in the last year’s returns. So, the current year’s returns should reflect that you have received the same 1099s as last year unless, of course, you have closed the accounts. You can talk to your accountants in Saskatchewan regarding how to use the previous year’s financial information in the current year’s returns. 

Wrapping Up, 

Taxes may not be as complex as they seem to be if you are ready with all that’s required for a hassle-free tax season. An experienced tax consultant can help you with the preparation.

 

Enjoyed this article? Stay informed by joining our newsletter!

Antonio Josse

About Author

Leave a comment

Your email address will not be published. Required fields are marked *

You may also like

Business

What are the Technology’s Functions in Simplifying Pharmacy Accounting Procedures ?

Technology’s Functions in Simplifying Pharmacy Accounting Procedures: Technology plays a pivotal role in revolutionizing various industries, and pharmacy accounting is
Business

What is Trading

25 Hits Jehan143 Jehan143 Jan 6, 2024, 8:36 AM Report Share Goods and Services Trading: Individuals or businesses exchange physical

SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO SEO