Taxes. They’re necessary to keep our country running but that doesn’t make them any less of a pain to pay. If you’re looking for ways to minimize the amount of taxes you owe, here are four tips to help you do just that.
1. Stay organized
Organization is key when it comes to tracking your expenses and deductions. Keep all your receipts in one place and, if possible, use a digital system like QuickBooks or FreshBooks to track everything electronically. This will not only save you time come tax season, but it will also help you stay on top of your spending throughout the year.
2. Claim all eligible expenses
When it comes to business expenses, there are a lot of things that can be written off. From office supplies and travel costs to marketing and advertising expenses, if it’s related to your business, chances are you can deduct it from your taxes. Make sure you’re claiming everything you’re entitled to and you could see a significant reduction in the amount of taxes you owe.
3. Take advantage of tax breaks
There are a number of tax breaks available to businesses in Canada. From the Small Business Deduction to the scientific research and experimental development tax credit, taking advantage of these breaks can save you a lot of money come tax time. Do some research and see what breaks you may be eligible for—you may be surprised at how much you can save.
4. Hire a professional
Navigating the world of taxes can be complicated and time-consuming. If you don’t have the time or energy to do it yourself, hiring a professional can be a great way to ensure everything is done correctly and that you’re taking advantage of all the deductions and credits you’re entitled to. Professional help may cost a bit upfront but, in the long run, it could save you a lot of money—and aggravation.
No one likes paying taxes but, unfortunately, they’re a necessary evil. If you want to minimize the amount of taxes you owe, there are some things you can do. From staying organized and claiming all eligible expenses to taking advantage of tax breaks and hiring a professional, following these four tips can help reduce the amount of taxes you pay each year—leaving more money in your pocket come tax time.