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Randall Dang Explains Three Money-Saving Tax Tips for Small Business Owners

Portrait Of Owner Standing In Coffee Shop


Next month, business owners in Canada will be submitting their tax returns if they have not done so already. Accountants like Randall Dang help people who have started their own home-based businesses or new start-ups understand how to file their taxes correctly and practice money-saving tips to ensure they don’t pay too much in taxes. This is especially important if your business is new as you probably don’t have the money to spend and could use it elsewhere. If this describes your situation, here are a few things to keep in mind:


When In Doubt, Always Proceed On the Side of Caution: If there’s one thing, Randall Dang, an accountant in Canada would probably suggest, it’s to keep your business and personal expenses separated if at all possible. Don’t use the business credit card to make personal transactions and vice-versa. There are too many situations where you can be found doing something wrong, and you will get penalized. Make sure to keep your records as detailed as possible and avoid any gray areas.


Take a Partial Salary: Some accountants in Canada would suggest that you take part of your pay in dividends to avoid a higher tax bill. If you’re young and starting out and don’t have many financial necessities, it might be advantageous to take some or even all of your pay in dividend income as dividends have a lower tax rate. You can make changes yearly to address


Hire an Accountant: Seriously, the biggest money-saving tip may be just to spend the money and hire an accountant. You may be able to avoid expensive penalties, receive the correct credits and deductions, and rest assured that your return was done correctly. In addition to that, you will be able to concentrate on other aspects of the business that might be more pertinent and fit your skillset.

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