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Business Tax Deadlines
When preparing to file business taxes, it’s essential to have all your financial records and documentation organized to avoid any complications or penalties. In this blog we’ll outline some of the most important things you need to have prepared ahead of the deadline, for both incorporated and unincorporated businesses.
Income and Expense Reports
Incorporated businesses in Canada are required to file annual financial statements with the Canada Revenue Agency (CRA). These statements should include a balance sheet, income statement, and statement of retained earnings. Financial statements provide an overview of your business’ financial health and help to ensure that your taxes are calculated correctly.
Unincorporated businesses, however, have varying filing requirements that could include a balance sheet, income statement and sometimes it may even be the case that nothing is required. This is because unincorporated businesses encompass various structures, such as proprietorships, partnerships, and joint ventures, each with different filing requirements. For example, proprietorships must file an income statement, partnerships may require either balance sheet and income statement or just income statement depending on the type of partnership, while joint ventures have no filing requirement.
Payroll Tax Records
As an employer, you need to file T4’s with the Canada Revenue Agency (CRA) and issue them to your employees on or before February 28th every year.
Bank Statements and Financial Reports
Up-to-date financial reports are essential for tax preparation, meaning businesses should have accurate bank statements and financial reports, such as profit and loss statements, balance sheets and cash flow statements. Additionally, businesses must keep track of all sales and expenses incurred throughout the year. This includes receipts and invoices for all purchases and sales made by the business. Accurate sales and expense records help to ensure that your business is claiming all the deductions it is entitled to, reducing your tax liability.
Tax Forms
There are several tax forms that businesses may be required to file, depending on their entity type and activities. For example, corporations must file a T2 tax return, while sole proprietors must file a T1 personal tax return. Additionally, businesses may need to file forms such as T4, T5, and GST/HST returns. It’s important to know which forms your business needs to file to avoid any penalties.
Consult a Tax Professional
It’s always a good idea to consult with a tax professional when preparing for tax season. Our tax advisors at Mowbrey Gil know all the best practices to save you time and money. We’re here to ensure you are prepared for the business tax deadline. Contact the tax team at Mowbrey Gil today!
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