Tax Deadline Fast Approaching: BMO Offers Tips for Small Business Owners
TORONTO, ONTARIO--(Marketwire - April 16, 2012) - Small business owners have to wear several hats in order for their businesses to run smoothly. One of the more demanding roles is the accounting aspect of the business, especially at tax time.
"It's invaluable for small business owners to maximize tax incentives that can help boost their bottom line. With the tax filing deadline approaching, it's not too late with the help of a tax expert to look for tax efficiencies and plan for the coming business year," said Joe Collura, Small Business Area Manager, BMO Bank of Montreal.
The tax filing deadline for self-employed or unincorporated small businesses is only weeks away. BMO Bank of Montreal offers tips for entrepreneurs who have yet to file their personal income tax returns for 2011:
- File on time: Most sole proprietorship small businesses report business income on a calendar-year basis. The deadline for self-employed business owners to file their personal income tax returns is June 15; however, if you owe money, the interest starts accruing as of this month, on April 30.
- Seek out an expert: Entrepreneurs should work with a tax expert - typically an accountant - in order to maximize savings and minimize stress. An expert tax advisor will allow entrepreneurs to make the most of the tax strategies available to them.
- Gather business receipts and claim allowable expenses: Maximize income tax deductions by ensuring all allowable receipts for business-related expenses (ie. utilities, gas fill-ups, postage, customer lunches, coffee for the office) are kept. Business owners should consult the guidelines available from the Canada Revenue Agency, or speak to their professional tax advisor about eligible business expenses.
- Consider inventory write-offs: A drop in the value of inventory may provide an opportunity for an income tax deduction for the current year. It is important to speak to an accountant about the tax rules that apply to your particular situation.
- Schedule a financial check-up: Just as you would book an annual physical with the doctor to help maintain your health, at a minimum an annual review of your business is important to your financial well-being. A business banking advisor, accountant, and investment advisor can help owners make sure that they have a clear understanding of their evolving financial situation. These professionals can also help develop or adjust existing plans based on new needs or changing circumstances.
- Plan for the rest of 2012 and maximize savings: If you haven't been doing so yet, one of the best ways for small business owners to generate tax savings is to invest as much as you can in an RRSP. Your allowable contribution for the year can be deducted dollar-for-dollar from the amount of income that you report for the year
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
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