Somehow we are almost one month into 2023 (!) and it is time for business owners (and individuals) to start thinking about one of their favourite subjects i.e. taxes. I have compiled a list of the deadlines that all of you should know and also updated my annual business tax deadline calendar. Sign up to download our free Canada unincorporated business tax deadline calendar for 2023 or Quebec unincorporated small business tax deadline calendar 2023. Learn more Available at Amazon Notes on Tax Deadlines for 2023 The usual deadline for sales tax (GST/HST and QST) payments and income tax returns ..read more

For those of you who are starting a new business, it is essential to know your tax obligations.  Every business owner must report their net profits on a either their personal tax return if they are unincorporated or a corporation tax return if they are incorporated. In addition to income tax, it is essential to consider whether or not you should register and collect GST/HST and provincial sales taxes.  There are a variety of questions around this topic: What is GST and HST? GST stands for Goods and Services Tax while HST stands for Harmonized Sales Tax. Both of these are consumption ..read more

Deciding whether to incorporate can be challenging for many small business owners. There is a lot of conflicting information and it can be hard to determine, in the absence of experience, what facts are relevant to your situation. The internet can only answer so many questions. It can be helpful to speak to an expert on starting your business, but ultimately the decision is yours. Once you have decided to establish a new corporation, there are certain best practices that you should implement to ensure that your corporation runs smoothly right from the beginning. By being proactive, you can tur ..read more

When you are a business owner/freelancer, there are few things that are better than landing a great client. Ones that ask great questions, respect our work and make us feel happy to have chosen the entrepreneurial route.  Conversely there are bad clients who have unrealistic expectations, are unimaginative and often just plain clueless. Of course, as the service provider, it is also incumbent upon you to provide an exceptional service. Having a client is not dissimilar from being in a relationship and for both sides to get the most out of it, you must also be responsive, respectful, fair ..read more

Many of you leave your full time jobs to become independent contractors.  This could be for a variety of reasons: you might decide you want the freedom that comes with self employment, or your company might decide that they no longer want to maintain employees.  In some cases, you are laid off and find another opportunity , but the business only offers contract positions.  This type of situation is particularly applicable to people in the IT industry but can also apply to a variety of other types of skill sets.  Often, your client will require that you set up a corporation ..read more

In the past advertising for small business owners mostly involved creating an ad for print, television or radio (a catchy jingle is always a good way to go), cold calling (rarely a pleasant experience), sending out flyers or being at a conference.  The problem with these types of advertising is that it is difficult to gage the direct impact of their effectiveness.  Additionally, they are often fairly costly, which for small business owners can be difficult to afford.  Over the past few years the avenues for advertising have grown exponentially. Many types of advertising don’t ev ..read more

Being a small business owner comes with challenges, not the least of which is doing your taxes.  While most Canadian taxpayers have relatively simple tax returns that can easily be completed using software, small business owners have the additional burden of reporting details relating to their businesses.  This can seem onerous, but understanding what needs to be done, and when, can significantly help reduce the stress and ensure that the tax filing process is smooth and straightforward. One of the types of income on which you pay income taxes is what Revenue Canada (CRA) refers to a ..read more

One of the important benefits of having a home based business, assuming you are a freelancer, self employed contractor or small business owner, and not an employee (where a similar deduction is also available) is that Revenue Canada (CRA) and Revenue Quebec allow you to deduct the expenses relating to the space that you use for your home office.  This can result in a reduction in your tax bill for costs that you would incur regardless, which is certainly an incentive to being your own boss.   Related Post: What you need to set up your home office Criteria for Deductibility ..read more

It is the time of year when everyone adult Canadian should be thinking about investing into their registered retirement savings plan (RRSP) prior to the deadline of March 1st. Many of you might think that you are young and have time or conversely that you are older and it’s too late. The truth is that it is never too early or late to start a RRSP. You simply need to set a goal and start doing it. The great benefit of investing in RRSPs, which is the single best tax optimization strategy available to all Canadians, is that it reduces the amount of income taxes that you will have to pay. The tax ..read more

When I was employee, I never really gave much thought to the T4 (and the Quebec equivalent RL-1) process.  I knew that sometime around February an envelope would appear on my desk with a tax document that I would need to reflect on my tax return. I suppose I thought that someone, somewhere pressed a button and the T4s were generated.  When I became a small business accountant, who was now either responsible for preparing this information or providing guidance to my clients, I realized that the process was somewhat more complicated.  Let’s discuss some of the key aspects of T4s t ..read more