Helping private company owners prepare for tax season
TORONTO, Feb. 12, 2015 /CNW/ - With the tax season quickly approaching, now is the time for private company owners to evaluate options available to help reduce tax stress, according to EY's publication, Taking the stress out of tax season; tips for private company owners to stay organized, in [email protected]
"The looming tax season can be a frustrating time for many private business owners — but it doesn't have to be," says David Steinberg, EY Tax Partner and National Private Mid-Market Co-leader. "More and more, private companies are discovering how planned tax preparation can help streamline business processes and yield significant tax savings," says Steinberg. "Using a system to keep tax documents organized, and taking some time at the beginning of the year to review succession and estate planning, can make a substantial difference when it comes time to deal with tax matters."
EY has identified the top five tips to help private business owners stay organized for tax season:
- Keep documents organized. Have a system in place to organize previous years' tax returns, financial statements, vehicle mileage logbooks and records of food and entertainment expenses.
- Claim eligible deductions. The deadline for making 2014 RRSP contributions is 2 March 2015. To get the maximum 2015 RRSP contribution of $24,930 private company owners want to have earned income of $138,500 in 2014.
- Ensure your accounting software is the right fit for the business. Accounting software for a privately-owned company is not a one-size-fits-all notion. Keeping it simple is the key for any business.
- Get advice from the right people. The right accountant can help your private business with not only tax returns, but with longer term tax planning, audits, financial statement reviews, business planning, networking, and even personal tax planning if you're still the major stakeholder in your business.
- Review your succession and estate plan. With a fresh start to the beginning of the year, there is no better time to review your succession plan than now. Starting succession planning early on provides you with the knowledge that allows you to drive the exit process and determine what's best for the future of the business.
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SOURCE EY (Ernst & Young)