TAX TIME
Be Organized At Tax Time
BY : JACKIE DABLEH-HAKIMIAN DAYE KELLY & ASSOCIATES
We all know how fast time flies . It always seems like “ it ’ s that time of year again ” when we need to meet with our accountant to get our corporate or personal taxes filed . If you find you are always struggling at the last minute to gather your information and meet with your accountant before the filing deadline , the following information will hopefully get you motivated to get organised early and know ahead of time what information your accountant requires .
Not all incorporated businesses have the same year-end , but it is important that you stay organised and on top of everything so that you can have everything ready for your accountant within a month or two after your yearend . You have six months after your year-end date to file your corporate tax return . Please keep in mind that if you owe taxes , you will need to pay within two or three months after your year-end date ( corporate ) in order to avoid any interest on balances owing .
Why wait until the last minute ? The following are a few tips to help you stay organized and gather the correct information :
• If you use QuickBooks , Simply Accounting , other accounting software , or even Excel , make sure your bank and credit cards are reconciled monthly .
• At year-end , review your accounts receivable list and identify any that may be potentially uncollectible .
• If you have any investments , ensure you have statements for the full year , with details on any new purchases or disposals and the income earned in the year .
• Ensure you have receipts for all capital assets purchased in the year .
• Review your accounts payable listing and make sure it is accurate and current at year-end .
• If you had any new loans during the year , provide copies of all new loan agreements and amortization tables .
• If you made any changes to banking agreements , provide copies of the new agreements .
• If there is any major change in revenue or expenses from the prior year , make sure to have a discussion with your accountant as to the reason why this has happened .
• Reconcile your wage expense to your annual T4 filing .
• Additional information accountants may ask for include property tax and insurance documents , lease agreements , and the like .
• At year end , count inventory
For personal taxes , the filing deadline is April 30 . For those who are self-employed , the deadline is extended to June 15 . If you owe personal taxes , interest will start accumulating as of April 30 .
The following is common information you will need to provide to file your personal taxes :
• If any of the following information has changed , please provide details to your accountant : marital status , home address , telephone number , the birth or adoption of a child , and direct deposit information
• If you sold your primary residence in the year , provide the year of acquisition and proceeds of disposition
• All T slips ( T4 , T5 , T3 , T4RIF , T4RSP , T4A , T4E , etc .)
• Medical receipts ( Tip : You do not need to bring in every single prescription receipt . If you go to Shopper ’ s Drug Mart [ or wherever you obtain your prescriptions ], the pharmacy can give you a printout of all your prescription orders for the entire year .)
• Medical premiums paid
• Interest on student loans
• Child care expenses ( For 2017 child care and camps , there is no fitness or arts credit .)
• Investment details ( sale of shares , investment counsel fees , and similar items )
• Details of rental and business income and expenses
• Details of foreign investments ( only if the aggregate cost is greater than CAD 100,000 )
• Are you or any of your dependants disabled ? If yes , provide form T2201 – Disability Tax Credit Certificate .
• RRSP contribution slips
• Donation receipts
This list is by no means exhaustive . Every business and individual is different , but these are just a few general items to consider when gathering your information . For further information , please contact your local accountant . +
Jackie Dableh-Hakimian , BBA , CPA , CGA joined Daye Kelly & Associates in 2004 and has been a partner since 2015 . Jackie has a wide range of experience in financial statements , accounting and audit services , and personal and corporate tax . Jackie is currently a facilitator and mentor for CPA Atlantic School of Business . Jackie has previously been a member of the EPR Canada Assurance Standards Committee , has volunteered for several organizations and continues to volunteer when the opportunity arises .
26