Ways to Avoid a Small Business Tax Audit

Small businesses, due to their very nature, are under close scrutiny by the CRA. While there is no way to ensure you’ll never be selected for an audit, there are some ways you can decrease your chances. Read on for five ways to keep the auditors at bay.   1. Avoid Revenue Discrepancies When submitting your business revenue, consistency is key. If there are any discrepancies in your business income across any tax forms, that is a big red flag for the CRA and will usually warrant a further investigation. 2. Understand Industry Risk If you are in an industry ...Read More

4 Ways to Avoid A Personal Tax Audit This Season

Ah, the dreaded tax audit. While few taxpayers will ever actually face an audit, we all fear receiving that notice letter. Undergoing a personal tax audit can be a stressful and time-consuming experience - so how do you avoid it? While there is no sure fire way to ensure you never get audited, there are a few steps you can take that will minimize the chance of the CRA knocking on your door; read on to learn more! 1. Know Your Risk Certain industries have been flagged as “high risk” by the CRA. Contractors, restaurant serving staff, and mechanics are ...Read More

The 5 Biggest Retirement Planning Mistakes You Can Avoid

Planning for your retirement is arguably one of the most important financial goals you’ll ever undertake. Unfortunately, it’s easy to make a mistake now that might hurt your financial security down the line. The good news? These mistakes are easy to avoid! Read on to learn five common mistakes when it comes to planning for retirement, and how you can avoid them. 1. Not Having a Plan in Place According to a study done by the Employee Benefits Research Institute, 48% of workers have not calculated how much money they need to save for retirement. How can you reach your ...Read More

What’s a Tax Audit?

While the auditing process is meant to help maintain public confidence in the fairness of Canada’s tax system, it can be a stressful and onerous experience on a taxpayer. There are two main types of tax audits: business audits and personal audits. Read on to learn a bit more about each type, what you can expect if you’re selected for an audit of your own and how Liu & Associates can help. Business Audits A business tax audit is a process in which the CRA closely examines small and medium-sized businesses’ books and records to ensure they are complying with ...Read More

How to Plan for Retirement

Transitioning into retirement takes careful planning, so make sure you give yourself as much time as possible to prepare. While financial planning may seem daunting, there are many resources available to help ease the stress. Read on for a couple of tips on things you can do ahead of time to make sure that when the time comes for you to retire, you are ready to go! Apply for Government Benefits It’s a good idea to learn the timelines of certain government benefits, like CPP, so you can make sure you get your payments on time. Applications for CPP can ...Read More

Why You Should Consider Hiring an Accounting for Your Startup

Many startup owners will choose to manage their own accounting in order to save money wherever possible. However, if you aren’t experienced with business accounting, you could be making mistakes that could potentially affect the success of your business. Read on to learn how outsourcing your business accounting can save you time and stress. What Can an Accountant Help With? Accountants can offer their expertise at all business stages, from starting up to expanding. Business Formation During your startup’s early days, an accountant can help you with steps like: Selecting the proper business structure from a tax and legal perspective ...Read More

Tax Implications of Rental Properties

Owning a separate rental property or renting out a space in your home can be a great way to make some additional income; however, it’s important you understand the tax implications that surround this type of endeavor. Read on for Liu & Associate’s guide to rental properties, taxes and more!           Claiming Rental Income Regardless of the type of property you are renting (a room, your basement, a separate property), you must report all rental income to the CRA on a yearly basis. You’ll need to fill out a T776 - Statement of Real Estate Rentals ...Read More

What You Need to Know About Filing a Late Tax Return

  Filing your tax return late should be avoided if possible, because doing so can end up costing you big - especially if it happens year over year! A late tax return can come with interest, penalties and even interest on your penalties! However, if you have missed the April 30 deadline, don’t dismay - Liu & Associates can help! Read on for what you need to know about late tax returns. What Fees Are Associated with Filing My Taxes Late? If you owe taxes to the CRA and you fail to meet the April 30 deadline, penalty charges and ...Read More

Corporate vs. Personal Accounting: What’s Right for You?

If you are looking to start your accounting career, one of the main decisions you’ll need to make early on is if you’d like to work in a private or public accounting setting. While similar in some regards, the two areas differ in a number of aspects. Read on to learn the difference between the two, and see which one suits your personality best! Private (Corporate) Accounting Private accountants (also referred to as corporate accountants) are employed by an individual company and look after accounting needs for that company only. Private accountants will generally need to have some background knowledge ...Read More

When Do I Have to Submit My Corporate Taxes?

It’s a common questions among new business owners: How soon after my business’ year end do I have to file my corporate taxes? Read on for Liu and Associates breakdown of Canadian corporate tax filing deadlines. Canadian Corporate Tax Returns The basic rule when it comes to filing your Canadian corporate tax return is that you must submit your return no later than six months after the end of your business’ tax year. This means that each business’s T2 return date will differ depending on their fiscal year end. Example If your business’ year end is September 30, your Canadian ...Read More