Is it too soon to start talking about your end-of-year?
Sure, it’s only November and Christmas comes first but, before you know it, the calendar is going to change to 2015 and it will time for small business owners to think about taxes.
If you’re a sole proprietor, December 31 marks your year-end, since you claim your business income and expenses with your personal taxes. If you own an incorporated business, you may have kept your fiscal year in line with the calendar year, or it may just be a good time to get all your books and receipts in order.
Get the dirty work done
It’s good to take some proactive time and get everything organized for year-end
That way, you won’t be scrambling to pull everything together when it’s time to call us for help. (It also helps us get a clearer picture of your business, the deductions and credits you can claim, and better planning for more success.)
Here’s what you need to do:
1. Organize your receipts
Time is money, right? The more time we spend organizing your receipts for you, the more billable hours we charge. If your receipts come organized, it saves us time and you money.
ઙ Keeping your receipts separated by category, such as rent, utilities, meals and entertainment, office supplies and vehicle (I even separate for gas, repairs, oil changes and insurance).
ઙ Keeping all receipts in one place, since it doesn’t do you any good to give us a bunch of receipts and then find another batch when you’re doing some spring office cleaning!
ઙ Using one USB drive to store your online receipts
And for heaven’s sake, trash all the receipts for items you can’t claim.
2. Plan for next year
Did you bring in more revenue this year than in 2013? Can you turn that profit into investments for the business … investments, such as capital costs and equipment, that can help you expand or improve your business processes?
Take a deep look at your financial planning and see where you can make better decisions for your business — and for your customers or clients.
3. Take business to another level
If things are going well, sole proprietors may want to consider jumping into incorporation. The move affords you a level of legal protection, tax benefits and credibility.
Start 2015 with a bigger, bolder look to the future as small business owner in Calgary.
We can help
When you get caught up on the necessary evil of getting organized, let us help. We can help you structure your financial and tax planning to help you reach your business’s goals and dreams.
A1 Accounting, a Calgary accounting and bookkeeping firm, is here to assist you with your taxes and planning. We specialize in personal taxes and small-business accounting and financial services. Contact one of our tax specialists and we can help you optimize the tax benefits and credits available to self-employed individuals and small businesses.
Fill out our contact form or give us a call at 403-226-8297.
Image courtesy of patpitchaya at FreeDigitalPhotos.net