If you own your business, tax season can be much more stressful and complicated than it is for individuals who only need to manage their own tax information or that of their families. For this reason, it can be incredibly useful to have somebody in your corner who specializes in tax preparation for small businesses. At Leskun & Son Accounting, we have been doing accounting and bookkeeping work for businesses throughout BC since 1972, and our experience has allowed us to put together a comprehensive small business tax season checklist to help our clients prepare for the end of their financial year.
Tax Season Checklist for Small Businesses
In order to be as prepared for tax season as possible, it can be helpful to assemble a couple of various records. Before anything else, make sure that you meet with your accountant or bookkeeper to find out if they need anything beyond what they already have access to in order to prepare your tax statements. It is possible that they will already have everything that they need to get through tax season. If your taxes are done in-house, make sure that you have records to the following information:
1. Business Income and Tax Collected
You will need to have a gross total of your business’ income. This sum will include GST and HST. You will also need to have records of the individual amounts collected for GST and HST.
2. Cost of Goods Sold
Records of inventory and the value of that inventory are important. Your tax information will need to include information on your year’s starting inventory value, its finishing inventory value, and the value of any materials purchased throughout the year. Along with tracking physical goods, you will need to report on the cost of wages and sub-contracts for the year.
3. Business Expenses
The expenses of running your business can be divided into various areas, including all vehicle expenses, use-of-home expenses, and general business expenses. General business expenses can include such expenses as advertising, meals and entertainment, office expenses, insurance, travel, utilities, and much more. If you operate out of your home, use-of-home expenses can include an allotment from your yearly spending on your home for utilities, home insurance, and even the square footage of your property allotted to the running of your business.
If you would like to get more help with your small business tax season checklist, or if you have questions for one of our professional accountants about any other small business-related tax or accounting issues, please contact Leskun & Son Accounting at 1-877-826-1219 or fill out a contact form on our website.