Entrepreneurs often want to spend on worthwhile business ventures. As a Canadian small business owner, it is impractical to expend more than what is needed, including taxes. Business owners are entitled to tax deductions if these are proven valid and meet the criteria established by the Canada Revenue Agency (CRA).
There are tax write-offs many entrepreneurs are eligible for, but some might overlook certain deductions. Oftentimes, missed tax benefits are related to home-based business operations.
Several businesses already run on a home-based setup even before the pre-pandemic period. However, because of the COVID-19 global health crisis, more and more people choose to use their houses for conducting business. When a small business owner uses their home more than 50% of the time to earn income and hold meetings, they might qualify for tax benefits.
It is imperative that entrepreneurs familiarize themselves with the tax write-offs they might be qualified for. Consequently, it is ideal that they utilize the services of a professional accountant to stay on top of their finances. These well-experienced accountants will help Canadian small business owners determine which operational costs are eligible for tax deductions.
Business owners should also use a reliable small business bookkeeping app to simplify and expedite the process. Using an accounting and bookkeeping program also minimizes human error and other flaws typically associated with manual processes.
Moreover, entrepreneurs can also use a free invoice maker app to keep track of customer invoices easier and faster. Small business owners do not have to scramble in their offices to look for paper documents when they use this digital tool. They can simply monitor invoices on a simplified dashboard. Many providers offer invoice maker software integrated with accounting and bookkeeping apps, further streamlining the procedure. Canadian entrepreneurs should stay on top of their finances all year round to ensure everything is accounted for before tax season arrives. For more information on the matter, here is an infographic KIPPIN, Inc., which discusses the top 6 most commonly overlooked tax benefits for Canadian small businesses.