5 Simple Tips for preparing and filing your tax returns
No matter whether you are a salaried employee, a self-employed or a business owner or any other professional you need to file your tax returns on a regular basis. This may be a daunting task if you are not familiar with the process. However, it may not be too difficult a process if you are organized and follow a few simple and basic steps. We have been in the field since 2001. We have been providing with accounting and tax related services in Canada. So if you are based in these countries we can help you save taxes. In this blog, we will discuss with you 5 simple steps which can help you prepare and file your tax returns easily.
Simple Steps that will help you save time
- Start your tax planning early
Matters relating to your finance and taxation are those which are of prime importance. So no matter whether you are in business for yourself, a salaried employee or a self-employed professional keeping your tax matters clean will help in running a hassle free business. This is why you need to plan early. You need to understand matters so that you can keep the records clean as would be necessary for the smooth filing of tax returns. For the purpose, it could also make sense to take the help of an expert in the field.
- Keep good records and receipts throughout the year
For proper tax filing maintenance of the actual records is of utmost importance. You, therefore, need to organize and file your receipts as they come in. So you need to maintain a systematic record of all your financial transactions. This would include your tax information slips, as well as supporting documents. It means bills, credit card statements, receipts for the car, home office, and other business expenses, stock transactions, and housing, business and rental property records.
- Ensure that you receive all tax information slips
Along with maintenance of all financial transactions, you need to maintain records of your tax information slips as well. This includes receipts for RRSP contributions and charitable donations. It also includes:
- T4 slip – if you are an employee,
- T4A – if you have received pension income, lump-sum payments, self-employed commissions or annuity income,
- T3 – if you have earned income from a trust, and
- T5 – if you have received investment income.
This will help in the right assessment of the exact tax calculation.
- Decide if you need tax preparation help
Filing the right tax and saving taxes if possible is an important need for all. This is a field which requires expertise. So even if you are to pay a fee for obtaining the valuable service, it may be worth paying. So you need to consult an expert in the field who can provide you with the right advice.
- Prepare summaries and organize your receipts
Even if you are to consult an expert, he or she would require of knowing your financial details. So prior to visiting your tax professional, summarize your different sources of income, and your deductions and tax credits. This will save you money in tax preparation fees.
In conclusion, we hope that the above-mentioned steps would help you to file your taxes. In the case of any further queries or services required on the matter please visit our website.
