APRIL 30TH

Well fellow Canadians, it is that time again where we frantically scurry around the house looking for the 2009 tax folder so we can see if we paid enough to the taxman.

You may decide that you would like to try your hand at your personal taxes or that it is better in the hands of your accountant. Either way it is a good idea to refresh yourself with all the changes and tax breaks you have been granted for 2009.

The first thing I can't stress enough is make sure that you have all of your T4s, T4Es, T3s, etc. Revenue Canada will penalize you and charge you interest for with holding income on your T1. This is not something your accountant/bookkeeper would know!

If you are an employee and have expenses, you must ensure that you have your employer fill out the T2200 - Declaration of Conditions of Employment so that you can claim any vehicle or home expenses that your employer has not reimbursed you on.

If you are a sole proprietor or in a partnership that is not incorporated, ensure that you have all the appropriate expenses that you incurred to run the business. This also means the mortgage interest and property tax that you paid; claim only the percentage for your office space.

If you have children in daycare, make sure that you have the daycare receipt for the year. Should the daycare not be a formal company, you are required to have the caregiver's SIN on the receipt. You can also claim day camps and day sports schools your child participated in.

The government also gives Home Renovations Tax Credit for 2009. Make sure you read what is allowed to be deducted and gather up your receipts.

You have a lot of choices as to who you would like to do your taxes and where you would like to get them done. JUST GET YOUR TAXES DONE ON TIME!

TAX DEADLINES

Well it is that time again! No not the yearly checkup, but as uncomfortable! It does not have to be that way if you just make sure you are doing the following:

1.  Organization - It is a good idea, if you have not already been doing ,so to get your records together, organize by month, and, if you feel so inclined, get them entered into a computerized accounting program or at least an excel spreadsheet.


2.  Save Money - Complete your bank reconciliations, get all of the invoices and returned cheques and staple them to the back of your bank statement. If you do not have an accounting program you can still complete this task. YOUR ACCOUNTANT WILL LOVE YOU!

3.  Don't Throw Anything Out - Keep all receipts, your accountant will instruct you on the receipts that can work as an expense. One good practice is to write on your receipt what the purchase was for or who you took out for that meal.

4.  Business Use of Personal Vehicle - As at January 1, 2009, a mileage log needs to be maintained a minimum of one month out of the year and may be requested by CRA in an audit. You are required to complete a milieage log for one month and then it will be averaged for the year. You must keep this information for SEVEN YEARS! You can also claim the business portion of the following: fuel; leasing or financing costs; repairs and maintenance; license and registration; and parking.

5.  Home Office - Make sure that you gather the following information: rent; mortgage interest -- not the principal portion; property taxes; utilities; telephone; and home insurance.  There are other less obvious expenses you should be claiming -- YOUR ACCOUNTANT WILL TELL YOU!

With all this knowledge you should be able to feel a bit more in control when you set up that meeting with your accountant.

TO YOUR SUCCESS!

THE ACCOUNTESS

Chart your Course

In order to know where you are going in business you should be charting your course.  There are a few basic steps that you should follow:

1.  Who Are you?  Make sure you have established your business name should you choose to have one. In order to establish you should make sure you have completed a NUANS search. This can be done for both a Proprietorship or a Corporation. You should also have decided if you will be handled in just one province or all of Canada.
2.  What Are you?  Decide if you will be a Proprietor, Partnership, or a Corporation. Each of them requiring different annual filing and with different fiscal year ends. A Proprietor is very basic and the annual tax return can be handled through a T1.  The fiscal year end is December 31, 2009. For a Corporation the annual tax return can be handled through a T2, and it has different ways of paying the shareholders. The fiscal year end for the first year in business can be 12 months or less. This is where you can be strategic in your year ends.
3.  Where Are you?  This is a good time to decide where you will be conducting business. Will it be home-based or will you be leasing space? There are different insurances that you should be aware of, and you should also be registering your business with the city. 
4.  Why Are you?  Make sure you are very clear on the type of services you will be providing. Upgrading or developing different revenue streams is okay, as long as it is not continuous. This will not only confuse your customers, but also your Accountant (which means more work for them). Always remember why you started your business -- this will keep you focused!

If you are not sure just send me an email and I would be happy to explain these steps in greater detail!