Can an Entrepreneur File His Corporate Tax in North York?

Category: Accounting Services

Posted by: shane zoomwebmedia

A business owner with tax-filing knowledge and experience can effortlessly file his corporate tax in North York. However, if you don’t have the confidence or are applying for the first time, we recommend getting help from our experts. Rami Kaai is a leading accounting and tax firm in the country have experienced tax experts with proven testimonies of helping numerous businesses in tax filing.

However, this blog is for you if you want to do it yourself. Read it till the end for comprehensive knowledge.

Why Do Entrepreneurs Like to Prepare Corporate Tax in North York by Themselves?

Nowadays, mostly the small business owners prefer to prepare their corporate tax on their own just because of saving dollars on accounting expenses. Besides, as tax filing is not a significant company expenditure, some businessmen prefer to handle it themselves.

Nobody understands your company better than you. Moreover, if you have knowledge of bookkeeping, you may perform tax filing better. However, you should be aware that company tax forms are significantly more complicated than personal income tax returns. In that case, the risks of making mistakes are higher.

Preparing your T2 tax return makes perfect sense if you have an accounting background and previous relevant expertise. Therefore, as you know the procedure, hiring additional corporate tax filing assistance is unnecessary.

However, you just need to ensure no conflicts of interest. Moreover, if you have the expertise and taxation knowledge, you can cut a few costs and avoid unnecessary tax payments. This might result in an audit and paying penalties to the CRA (Canada Revenue Agency).

On the other hand, when your business expands, and you start to deem it as your principal source of revenue, you must employ an expert to assist you with taxes. It helps you reduce the errors and file corporate tax professionally on time.

When You Should File Your Corporate Tax in North York?

Corporation tax filing times vary in comparison to a personal tax return. As a business owner, you must submit and pay tax when the financial period of your business ends. However, you have to file your corporation tax no later than six months after completing your fiscal year if you are late. Moreover, if you owe taxes, you should pay them within three months after your fiscal year ends.

Which Business Records Are Required for Corporate Tax Returns?

Record management is essential to running a business in a streamlined way. Here are the lists of records that you need to file your corporate income tax:

• Accounting and finance statements
• Info of GST/HST returns
• Asset acquisitions and disposals
• A copy of your business authorization
• Receipts for purchases and expenditures
• The most recent assessment notice
• Employee deduction payable
• Received invoices
• Accounts payable / receivable
• Payroll information
• Tax returns of the previous year

 The Bottom Line

As you can see, although it is feasible to prepare your company taxes on your own, however, it is not suggested. Since not being a professional, there is a high chance you would make mistakes on your end. As a result, you might be subjected to a CRA audit and wind up spending far more time than anticipated.

So, we suggest you don’t take unnecessary risks for a bit of money. Feel free to contact our experts to get end-to-end guidance at a reasonable price. We are here to assist you.

Thursday, April 14, 2022