Tax time can be stressful for small business owners. With so many tax credits and savings opportunities, knowing what you can claim can be a daunting challenge. With the tax deadline looming, many small business owners are scrambling to find that shoebox full of receipts. It doesn’t have to be that way. Here are a few helpful tips to make sure you’re getting every dollar back that you deserve.
1. Build expense tracking into your routine. Rather than scrambling to find missing receipts at the last minute, consider using financial management software that lives in the cloud. This strategy will help you track your expenses all year-round, and if you use online tax software at tax time, all your financial information can be easily ported over.
2. Don’t forget about that business lunch. Often missed are the entertainment expenses incurred to earn income, such as meals, coffee, drinks at the bar and gifts.
3. Log your kilometres. If you use your car for business, you may be entitled to claim a reasonable portion of gas, licence and registration fees, interest, insurance, lease, maintenance and repairs, capital cost allowance and parking. Keep a log of all business-related travel to ensure that you can distinguish between personal and business use.
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