If you’re like us at Homeroom, you’re feverishly pulling names for Secret Santa with your workmates, and thinking about snatching all the tantalizing Black Friday shopping deals.
We aren’t saying that those things are not important.
However, there are a few more things that we recommend you think about before you body-surf your way to the cash counter or Jackie Chan your way through the mad crowds to that magical trinket that’s calling out to you, to ensure that tax time doesn’t hurt your wallet (or your body) as badly as the holidays can.
Unless you’re like the shoppers in the photo above, lugging human-sized plush toys through the packed fluorescent store aisles….. because teddy bears are forever-friends that can make everything better, even tax season!
If you are a sole proprietor and corporation owner it is time to start making sure you have everything in place to minimize your tax payable and to ensure a smooth transition into 2017, as December 31st is rapidly approaching.
You should determine what business purchases you may want to make in the beginning of 2017. Once you have written your list take the time to consider if you can afford to make any of your listed purchases before December 31st.
If you can it will increase the amount you can write-off when completing your 2016 tax return.
Check Your Payroll
Take the time to look through your 2016 payroll liabilities.
Determine if there are any unpaid balances or discrepancies that you can remit/reconcile by Jan 15, 2017 (the date when final liabilities are due for 2016).
Failure to do this could result in your business being charged a penalty to rectify any errors that are found after your T4’s are submitted.
Note: Good bookkeepers will be doing this on your behalf.
Work Out Your Net Income
It is good practice to spend this time of year figuring out a rough estimate of what your net income was for the year.
This will allow you to determine if you have put aside enough savings over the year to pay your income taxes and if you haven’t it will at least buy you enough time to write a letter to Santa begging for money to be left in your Christmas stocking.
Personal taxes are on April 30th and corporate taxes are due March 31st so if Santa doesn’t pull through you still have a chance to save.
We recommend that you complete this task even if you are a salaried employee of your company as it will allow you to determine if you should hold off on paying yourself a bonus or if you should defer any salary payments.
Deferring some payments until January may help you stay in a lower tax bracket or at a minimum defer additional tax payments for another year.
If you need help getting your year end in order Teya our business consultant and tax expert is the lady to help. You can make an appointment by calling us directly on 604 739 9536 or by requesting an appointment through our contact us page.