Top 6 Most Commonly Overlooked Tax Deductions For Canadian Small Businesses
A small business may earn significant revenue but still has tax liabilities to pay. Many business owners find a hard time finding ways to lower their financial obligation without knowing how often they overlook various tax deductions.
A tax deduction or tax write-off is an expense that a business owner can deduct from their income to reduce taxes due. Identifying all business expenses and those that are tax-deductible is one of the easiest ways to make a small business more profitable.
Some of these expenses may be business expenses, but some may be eligible for a tax deduction. Taxes can be stressful, and for small business owners, it might feel unfair to give more than enough of their hard-earned business income to the government.
Moreover, in this time of uncertainty, there are various challenges that businesses will encounter in this year’s tax season, and it is expected to be more challenging and complex compared to the previous years.
Fortunately, technology can help address these challenges. One of the best tools that small businesses must have is a small business bookkeeping app. Financial bookkeeping is a complicated and time-consuming process.
Many business owners find it challenging even to cover the basics. A great business bookkeeping app can ensure that all business expenses are accounted for, meaning it can also determine which costs are eligible for tax benefits and tax deductions.
Having this tool can also help business owners focus on their core business responsibilities and minimize errors associated with manual operations.
Small businesses should also consider having a free invoice maker app. An invoice-making system can enable a business to reduce costs from using resources associated with paper-based systems. It can also help save time for processing, payments and can increase productivity.
Here in this infographic from KIPPIN discusses the most overlooked tax deductions for Canadian small businesses. Read on!