We will assess your individual requirements in order to link you with one of the finest accountants Calgary has to offer.
Intelligence and up to date information provide the foundation for all successful organizations. Our professional Chartered Accountants, CMA’s and CGA’s are highly respected due to their experience and expertise. The team at Small Business Tax Accounting (Canada) Inc. are able to provide the small business owner with personalized Chartered Accountant services that are usually only accessible to larger corporations. If you have questions about tax planning or need an expert to guide you through important decisions, rely on our competent team.
Most people are not aware that there are no regulations surrounding the accounting industry. Do not join the masses of small business owners who cut corners by hiring non-professionals. When tax returns are not filed properly, the result is thousands of dollars in taxes paid unnecessarily. If you suspect you have been overpaying taxes, consider these common questions.
Are you aware of how common it is for Small Business Owners to overpay taxes?
Why do I need an Accountant if there are no regulations regarding the Accounting Industry?
The fact is that the accounting industry is unregulated, but this is not to say you do not need a certified accountant. One of the best advantages of a professional filing on your behalf is that you will not overpay taxes. Other essential services a competent accountant can provide are auditing, business valuation, and the ability to guide you through restructuring your company. No matter what state your company is in, you will not regret seeking the advice of a professional accountant to set you on the right path and save you money.
Why do I Need a Designated or Certified Accountant?
Small business owners should use extreme caution when choosing an accounting company. You will not save money if you do not use a designated or certified accountant. Without the proper training, well -meaning bookkeepers who do not pursue ongoing education on the ever-changing Tax Act will simply not be able to navigate your taxes to your benefit. Without the dedication of proper training, the consequences of errors or omissions when calculating expenses and GST can be devastating. You run the risk of overpaying, underpaying or being penalized. The CRA will catch up to these errors and charge you very high interest rates and penalties.
Is my accountant’s loyalty to me or to the Canada Revenue Agency?
Your accountant should be helping you to avoid paying unnecessary taxes. Without beneficial advice regarding how to claim expenses, some accountants are merely listing your expenditures without helping you find better ways to save you money. If you are not being advised on how to wisely and effectively file your return, then you are paying too much tax.
Why do I need a Chartered Accountant to fill out and file my business corporate year end (T2) return?
Your tax return is not the area where you should be trying to cut corners and save money. You must use caution when choosing who will assist you. Statistics show that on the average, clients pay an additional $3000 over 3 years when they do not use a designated accountant.
I can count on any designated accountant to know what they are doing, can’t I?
There are many designations in the world of accounting, just like there are many types of doctors. You know who to go to when you need heart surgery, but how do you choose an accountant? Prior to 2014, there were 3 designations; Chartered Accountants (CA), Chartered Professional Accountants (CPA) and Certified General Accountants (CGA). Since then, all graduating accountants receive the designation of Chartered Professional Accountant (CPA). Then they must choose a discipline to study and specialize in. Not all CPA’s are familiar with the regulations surrounding business or personal taxes. Since the regulations change every year, they do not have the detailed knowledge to give you the specialized advice you need for your small business.
Is it common for me to have to pay a yearly Management Fee?
Business owners commonly file a Management Fee when they have used an accountant to file their taxes. Until recently, they were not required to submit a T4 slip for this income. However, the CRA can go back up to 2 years and fine business owners a “Failure to File” penalty for neglecting to submit a T4. Although the resulting tax is not affected, a fine is incurred for non compliance.
My friend knows a lot about filing, why can’t I just use her?
Many people will tell you that they know someone who knows all about how to file a tax return. But tax regulations change from year to year. Too often your friend’s advice is incorrect. If your claim has been filed wrong, the CRA may review your taxes. If your deductions are not deemed eligible, you risk paying penalties with interest dating back to the claim date. This is why it is so important to find someone who is educated and aware of the latest changes in the Tax Act.
What documents do I need to ask my accountant to supply when my Corporate returns are being prepared?
You require complete hard copies (or complete .pdf in electronic form) of the following documents; GIFI Schedule 100 (Balance sheet), Schedule 125 (Income statement) and Schedule 8 (Capital Cost Allowance). Additionally, they should provide you with Financial Statements (at the very least, Notice to Reader statements) that will contain all the pertinent financial information necessary for any encounter with lenders and banks. Note that banks and lenders will not accept simple income/expense or balance sheets that a bookkeeper has generated using Quickbooks or Simply Accounting.
What documents should my accountant provide when preparing my Sole-Proprietor taxes?
You require a copy of your tax return in full, showing your income, expenses, vehicle depreciation and Business-Use-of-Home expenses found in the T2125 Business Activity pages. Additionally, the CRA form T776 Statement of Real Estate Rentals may be included. As a Sole-Proprietor, you may also benefit from calculations on worksheets or schedules.
Am I able to borrow money from my corporation?
This is allowed if these conditions are met:
1) Because the loans are at a non-arms length, they must bear an interest rate of 1% per annum, as prescribed by the CRA.
2) From the date of borrowing, loans must be repaid within one year. To prevent the loan from appearing on two balance sheets, this time period can be interpreted as “must be repaid by the end of the next fiscal year”. If the loan is not paid within this time the CRA will reassess the shareholder’s personal tax return and include the loan as income, without any deductions to the corporation. An offsetting deduction can be claimed when the loan is repaid.
3) For mortgages at fair market value that carry interest, you must put a lien on your home with terms of repayment that are similar to any other mortgage. Fair market value is based on what the corporation would charge an unaffiliated person based on the policies it would have in place if it was in the mortgage business, or, if it’s not in the mortgage industry, based on market practices.
Why Choose Us?
Small Business Tax Accounting (Canada) Inc. is comprised of detailed oriented professionals who are dedicated to meeting the demands of small business. Our team includes:
-Certified Management Accountants
-Certified General Accountants
-Certified Financial Planners