Accounting Services For The Self-Employed And Related Tax Laws In Canada

Posted on: 4 May 2019

Being self-employed certainly has its perks. You can work when you want, and you get paid when you need the money and have enough to cover business expenses. Most self-employed people also work from home, making it easier to manage household tasks and being present for their children and spouses. However, not everyone is able to manage the accounting that comes with having their own business and being self-employed. There are accounting services for these folks, and there are related tax laws in Canada that cut breaks for the self-employed. Here is what those services and breaks entail. 

Keep ALL Business-Related Receipts 

In order to help you with your accounting, a small business accountant needs to see all of your business-related receipts. If you buy a printer and several reams of paper for your home office, that is a receipt you must keep. If you buy a desk and office chair, that is also a receipt you have to keep. If you bought a candy bar and a pen, you could keep that receipt, but you really do not have to unless the candy bar was for a business client and the pen was used to sign contracts with that client. If it comes even close to being something you bought and used for your business, keep the receipt.

Your Accountant Can Meet With You Once a Week

Being self-employed, you should probably take stock of your business's profits and expenses at least weekly. When you hire a small business accountant, you can discuss the frequency with which the accountant will come and work on your books. This is why you should be saving every receipt, all week long. It gives the accountant a paper trail to work with as he/she balances your books. 

Tax Season in Canada for the Self-Employed

The self-employed in Canada have some nice breaks when it comes to tax season, too. While everyone else has to file taxes and report income by April 30th of each year, the self-employed have until June 15th to file--a whole month and a half longer than everyone else. This also extends out the late filing date for self-employed individuals who might be lagging because they need professional help to manage their books and file their taxes. Currently, it is past the deadline for everyone else, but if you are self-employed, you have time. Still, it behooves you to hire an accountant now so that you do not have to file your self-employment taxes late and you can get all of your business finances organized. 

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Keeping Your Finances In Check

When I started working from home, I realized that my pay was going to be a little more unpredictable than it had been in the past. However, I realized that with a few proper money management skills, I might be able to make my financial situation work--no matter when I got paid. I started keeping a very strict spreadsheet about all of my finances, and it was amazing to see how much that simple act helped. My blog is all about helping you to learn how to keep your finances in check, so that you don't struggle with decisions about money.

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