Tax time Advice for Small Businesses

[scandinazn]

Hey fellow Canadians,

Does anybody out there have experience doing taxes for a small business? This is my first year registered as a business, and I have no idea where to start. I'm from BC, and I know the taxes are slightly different from province to province, but any advice at all would be welcome. I'm wondering if it's worth it to hire an accountant, at least for the first year, to avoid screwing anything up. Thoughts?

[ShopKoolThingVintage]

Hi Jamie,

I wish I could help this is my first year of Etsy and I am kept awake at night with income tax confusion so I am adding to your questions.

1. I noticed when I down loaded my sales information from etsy it includes postage in the gross sale. This seems wrong / do I have to pay income tax on my postage as well?

2. I have kept my monthly receipts and plan to go to an accountant but would like an idea of how to organize them best before I hand them over. Are there any items I could write off I may not be aware of?

3. How do I deal with GST/HST taxes owed. I did not realize I would be so busy and have made just over the $30000 gross and did not charge hst/gst to my canadian buyers. I realize I will have to pay this to the government but how do I figure this out.

4. Any advise on spread sheets or anything to make my tax hell a little easier would be much appreciated.

Thanks you Mysa

[scandinazn]

Hey Mysa,

I'll let you know if I figure anything out. Right now I'm just as confused as you, but I have pretty much all the same concerns, except the GST one, although I have to pay PST I think. I'm sure if you go to an accountant they'll be able to help you write off things you were not aware of.

Cheers,

Jamie

[Former_Member]

How you file and who can file for you depends on how you are registered [ie if you are incorporated or not] and if you are registered for HST/GST or not. Ask local people who are like yourself either self employed, own a small business or incorporated about their accountant and how happy they are with them. Using an tax accountant or a firm that specializes in accounting and taxation [not a place that opens and does tax returns for 3 months of the year] will help you avoid getting audited for something overlooked or not reported and will minimize your tax burden.

[scandinazn]

Thanks Anne, I'll look into that.