If you own a small business or generate self-employed income, it is important to know any and all tax requirements for small businesses to ensure that you operate legally and avoid any run-ins with the Canadian Revenue Agency. At Leskun & Son Accounting, we are always sure to keep our clients informed on everything that they need to know in order to run the financial side of their business successfully, and this includes what is required of them regarding taxes.
Small Business Tax Requirements in Canada
As a small business owner, you are required to keep records of a variety of financial matters to report them in taxes. These matters include:
Acquisition and Ownership of Assets
Any time that your business gains an asset, such as transferable goods, resources or properties that will be used for work, or even employees, this needs to be recorded and reported. Invoices, receipts, and any other records should be kept and brought to your accountant. The value of any owned assets should also be recorded.
Business Income
You will need to keep accounts of any income that your business has generated. If you own a store of any kind, this will mean recording sales as gross income. As a contractor, any work done that you get paid for will need to be tracked and reported. Receipts, invoices, and other records should all be kept.
Business Expenses
Running any business will always have expenses, and these will need to be reported. Expenses to run a business could include tools and supplies, sellable goods, office space, advertising, vehicle expenses, or personnel fees. Business expenses are deductible from your taxes, so these are incredibly beneficial to keep records of.
If you would like to find out more about the tax expenses for small businesses, or to get started with any of our financial services for self-employed individuals and business owners, please contact Leskun & Son Accounting at 1-877-826-1219 or fill out a contact form on our website.