People working in the trades are in very high demand and often busy working long hours to keep up. For some tradespeople, this means that they do not have the time or even energy to sit down after a long day to balance their books, organise the payroll, deal with tax obligations and make their business compliant with the CRA. When things like this get pushed aside, this can cause issues down the road and leave you with even more work come tax time. This is why hiring an accountant or bookkeeper is a smart move to help you save time and money and let you focus on the things you know best!
Here are three of the common mistakes that people working in the trades often make:
You could be paying too much in taxes due to unclaimed work-related expenses. This is why it is a good idea to keep track of your receipts, as throwing them away is like throwing away money. Without your receipts, you will be unable to claim your expenses. A good idea is to keep a file folder in your vehicle to store all of your receipts. This will help keep you organized and ensure you do not miss anything. Plus, keeping them all together will make your accountant or bookkeeper happy!
When registering for GST, the choice to pay GST annually can often be a mistake. Receiving a massive bill at the end of the tax year can really hurt your business’s cash flow in the following year. This is why it is a good idea to switch to quarterly payments so you can pay it off in smaller, more manageable payments.
Do not, I repeat, DO NOT wait until the end of the tax year to balance your books. Rushing to file your year end can result in errors or omissions, which could ultimately lead to an audit by the CRA. If you need to hire help with your bookkeeping, this is when tax professionals are at their busiest and your filing may not be done on time if left to the last minute.This is why it is always important to keep on top of your finances throughout the year. Hiring an accountant or bookkeeper to handle your finances throughout the year can help alleviate stress as they keep your business on the right track. This ultimately frees up your time allowing you to focus on running your business and getting some .
You are an expert in your field, we are an expert in ours. Keenans Accounting Service is here to support your business with all your accounting needs. Give us a call at 705-526-7628 to arrange a consultation by phone or via Zoom meeting. Contactless, secure document dropoff and pickup are available at our offices in Downtown Midland.