Tax season can’t be stopped. It doesn’t matter what you do, it is going to come around every year. While this can mean quite a bit of work for you as you prepared to file small business taxes, it doesn’t need to be difficult.
Filing used to be time-consuming, stressful, and confusing. Preparing everything alone takes days, if not weeks, and you always wonder whether you remembered everything.
Luckily, things have changed in recent years. Filing online with the Canada Revenue Agency’s (CRA) online tools means you have a secure and convenient option, reducing paperwork, time, and stress.
In a digital-first era, filing online makes a huge difference for you and your taxes. You can use the CRA online services to file a return, make payments, register you business, make a request, calculate patrol deductions, download forms, and much more.
Don’t wait to sign up, as the old way of filing is already on its way out the door.
Taxes You Can Pay
Thanks to the simplicity of the online filing system, you can pay most small business taxes using the CRA online services. These include:
- Payroll source deductions
- Corporation income tax (T2)
- Individual tax (T1)
A Simpler, Faster Way
There are three key steps to filing small business taxes faster come tax season:
- Gather and organize records.
- Understand which forms apply to your business.
It’s that simple.
- Gather and Organize Records
Don’t wait until the last minute to do this part. You should always keep your books updated throughout the year for every item and employee. If you are a sole proprietor, it may seem like your business is simple to understand, but you don’t want to do all the work of tracking down expenses when it’s time to file.
Keep things organized all year round so the gathering process is faster later. For this, you can use accounting software like QuickBooks to manage income and expenses, track the health of your business, invoice customers, pay bills, generate reports, and finally prepare your small business taxes.
- Understand Which Forms Apply to Your Business
Whether your business is a sole proprietorship or a corporation, you will need to find the right forms when it comes time to file your small business taxes. Take a look at the CRA website to determine whether you need a T2 for corporate income tax, or a T1 for individual income tax.
Don’t wait until the deadline! While it can be tempting to delay filing your small business taxes, the best way to file faster is to do it as soon as possible. If step one and step two or gathering records (made easier with accounting solutions) and downloading and ordering forms are already done, you’re almost there.
Filing your small business taxes is fast now thanks to the CRA’s online services and powerful accounting solutions.
Make a Plan
You probably have a plan for your business; after all, you’re the boss. But it’s time to take control of your tax and accounting solutions as much as possible. You might need to look into some advanced accounting services that could save your business thousands in tax deductions or with leaky line items.
There may be money waiting to be claimed in many corners of your business.