Every tax season, Canadian business owners and individuals must gather all their financial information and go through the process of filing their taxes. For those who choose to file their taxes on their own, even with the help of software, the process can become quite a pain.
There is also the pressure to file on time, which can cause people to rush and do their taxes inadequately. Here’s a look at how you can do your personal taxes without pain, even if you’re filing late.
How Doing Your Taxes on Your Own Can Hurt You
Once you get together your receipts and slips, you can start the tax preparation process. However, only in the most straightforward situations can you file without hassle. If you have anything slightly approaching a complex financial situation, you may encounter many potential questions and issues if you are doing your taxes on your own.
If you are not sure where to start with your taxes, then professional help will make doing your taxes easier. There are several situations in which help will make the process seamless:
- If you don’t know all the deductions you can claim
- If you have a life-changing event that affects your taxes, such as a marriage or divorce
- If you recently purchased a home
- If you have a self-employed business
All these situations create potential issues for individual tax filers. If you have to contend with too much more than just declaring their wages, then it is easier to enlist help.
If you hire an accounting firm, you can educate yourself in some of the things you need to know about taxes, and it can help make your complex tax situation far easier to contend with in the future.
What if you’re Filing Your Taxes Late?
Many people think they’re supposed to wait until the next tax season to file their taxes if they miss the deadline. Understand that you can file your taxes at any time.
Some people procrastinate because they know they owe, and know they are not currently in a position to pay. It is always better to file on time, even if you cannot pay.
If you do file late, you should still file as soon as possible. CRA penalties for late filing and interest increases each month. So the sooner you get to it, the better. Professional help is the one thing that can make your taxes as pain-free as possible, even if you’re filing late.
You may also like: Getting Ready for Making Tax Digital (MTD) with Cloud Accounting Software
About the Author: Gerald Hunt
After graduating from the University of Calgary with a Bachelor of Science degree in Computer Science, Gerald joined KPMG (Formerly Thorne Riddell) as a Computer Accounting Customer Service representative. In this position, Gerald installed accounting systems in over 200 different small to medium-sized companies over a 6-year span. In 1989, Gerald left KPMG to continue working with small business clients in his own corporation, installing computer accounting systems. While in this role, the DeVry Institute of Technology in Calgary engaged him to teach various courses. In time, Gerald moved up through the ranks of DeVry until he attained the position of Director of Finance for the Calgary Campus. He also acquired his Masters of Business Administration from City University of Seattle, Washington in 2001. Gerald’s career has always been focused on small business, accounting, and education. Need accounting help? Visit Padgett Business Services, and book a free no-obligation one-hour consultation.