While a lot of people wait until tax season comes around to get everything ready, we here at Wales Accounting believe it’s important to plan ahead. A lot of people assume that the accounting process for taxes will be easy, but the rules are changing every year and the last thing you want to get stuck doing is being audited and getting notices for reassessments left and right. 

Unfortunately, when it comes to taxes, one little mistake can be the difference between a good tax return and no tax return at all. So today, with the help of our team, we would like to discuss some of the ways to plan ahead so you’re fully prepared when tax season swings around again.

Track Your Expenses

Tracking your expenses is vital in making sure that your taxes are filed perfectly and you have the necessary receipts to back yourself up in case anything goes wrong throughout the process. This will include any records of your payroll, expense report, purchase orders, invoices, etc. Also make sure to store these receipts in a safe location where they don’t get stolen/damaged. While some of these expenses will be tax deductible, you will only be able to properly receive these deductibles if you have the proof to back it up. Make sure to keep everything & organize it so the documents are easy to access.

Keep Record of Your Earnings

One of the greatest ways to make your tax filing process easier is by tracking your earnings in addition to your expenses. When you keep accurate data of your income, you can navigate your taxes with ease in the most efficient way possible. This means, just as we stated previously when it comes to your expenses, you should store these records safely so they do not get stolen/damaged. Income statements, cash flow statements, balance sheets and other documents that are along the same page are vital to keep a hold onto.

Organize Your Documents

Now that we’ve established some of the documents you should hold onto to prepare for the upcoming tax season, it’s time to figure out how you’re going to organize them. When it comes down to it, the only way you’ll be able to efficiently navigate your taxes will be when you’ve organized your documents as well. In most cases, storing them away isn’t enough if you want this process to be simple and quick. Luckily, with the easy fix of a filing cabinet and labels, you can organize these documents in a jiffy, ensuring you’re fully prepared for what’s ahead.

Work With a Professional Company

While keeping track of your records as well as organizing them effectively helps you navigate your taxes, sometimes even this is not enough to figure out the complicated world of taxes. This confusion can lead to delays, mistakes and potentially, audits and other consequences from the CRA. If you’d like to avoid all of this and be 100% certain that your taxes are being taken care of the right way, be sure to work with a professional accounting company such as ours here at Wales Accounting.

With the help of our accounting professionals you can get affordable, high quality accounting assistance in no-time. With a deep care for each and every one of our clients, we make it our mission to give people the opportunity to get the best out of their taxes. To learn more about our tax services in Richmond Hill, be sure to call our front desk at (905) 508-9262 today!