Tax season in 2023 is almost here and tax services will soon be earning their pay. Unless you are looking to stress and agonize over the proceedings until that last second, there is no better time to begin tax preparation than now.
The tax system is complex – there are more than a few pitfalls that you can fall victim to if you don’t what to look out for. Hence, the team at F Silveira would like you to know how to prepare your business for Canada’s 2023 tax season.
Know Your Deadlines
Depending on your business structure and fiscal year, your deadlines for filing taxes can be varied and different but you need to hit them all to avoid penalties.
The deadline for corporate tax filing is six months after the end of the fiscal year (if there is a tax payable), on the last day of that month. The CRA, however, will start accruing interest after three months of the year end date if at the end there is a tax payable. Should the business’s fiscal year line up with the calendar year, the penalty deadline for your tax filing is June 30th, 2023. Otherwise, March is the date for interest if there is a tax payable when taxes are filed.
GST/HST returns can come due every month, every quarter, or every year. Monthly and quarterly returns require that you file on the last day of the month after your reporting period is over. If a GST/HST reporting period ended on August 31, your filing and payment come due on September 30.
Employees will file personal tax returns by May 1, 2023 (April 30 is a Sunday), hence you will need to provide the relevant documentation (T4s, T5s, etc) by February 28, 2023. We do, however, encourage you to provide us with the documents no later than Feb 20th to ensure we can file on time as per CRA deadline.
Knowing how much time you have to file your tax returns is a great place to start. Need help? We provide a checklist to help taxpayers compile their documents. Find out more here.
Your next point of order to prepare for the 2023 tax season is to gather all the documents relevant to tax accounting. These will mostly show the cash flow within the organization, income, and expenditure. Your invoices, bank statements, receipts, etc need to be collected so they are accessible when needed.
A great way to stay on top of organization is by maintaining a physical filing cabinet. Digital organization tools are very useful, but physical documents that are well-labeled make the tax process much easier. That said, you should keep an organized digital backup of your important documents.
Stay Abreast of The Changes to Tax Laws
The legislation governing tax filings and returns changes frequently in response to economic conditions. Tax accounting for small businesses and large corporations involves navigating these changes as they appear.
Changes to the minimum wage and the effects of inflation have had some significant effects on the 2023 tax season. The new CRA (Canadian Revenue Agency) tax rules are emblematic of that. In the new CRA rules, a 6.3% adjustment has affected all the federal income tax brackets and the BPA has been increased. These and many other changes will have to be accounted for.
Professional Tax Services
Keeping all the above-mentioned in order can be a difficult task for the average person. Unfortunately, the downfalls of making mistakes on your tax returns can be severe. Hence, you might want to engage the services of experts in the field to handle your tax preparations and filing.
With the aid of outstanding tax services, you can ensure that you meet all your deadlines and apply for all the deductions you qualify for.
F Silveira – Chartered Professional Accountant
With some dedication and effort, your business can weather any challenges thrown at you during the 2023 tax season. Keeping all your relevant documents organized, keeping your deadlines and tax legislation in mind, and engaging the tax services of experts will ensure you and your business make it through unscathed.
Please contact us if you need any professional tax services. F Silveira has a city-wide reputation for helping clients succeed that has developed since our inception in 2010. We have provided small businesses and large corporations with the financial assistance they need and we’re confident that we can make the upcoming tax season your smoothest one yet.