Save on taxes

Save on taxes

Some accountants will do little more than manage your accounts and complete your tax return forms, but the best accountants are more proactive. So before choosing an accountant, ask what they could suggest to save your business money.

For example, what proportion of your operating costs do they think you can offset against tax? If you’re a sole proprietor or consultant, can you offset a percentage of your phone bill, car costs, maybe even rent or mortgage payments? What are the implications of doing so? The accountant should warn you of any pitfalls. For example, using your home as business premises could result in a tax charge levied on the house when you sell it!

Always bear in mind that there is a big difference between tax avoidance (usually legal) and tax evasion (usually illegal). You need an accountant who knows the details of Canadian tax law so well that they’ll save you money in legal ways, but not one who takes things too far and risks causing your business to operate illegally.

Be very careful about this, because ultimately, it’s you, the business owner, who’ll pay the penalty if the law is broken.

As you can see, accounting companies can help you out during every stage of your company’s development. That doesn’t mean you have to hire one, but the right accounting company will make life easier for you, so you can concentrate on what you love doing.

Your specialty is running your business. Leave the financial detail to an accountant.