Mistake#4: Not filing and paying taxes on time
Filing and paying taxes late is the most significant tax blunders small businesses make, which subject them to penalties and fees—unnecessary costs that can easily be avoided.
Always try to file and pay your tax on time. Submit quarterly filings to keep up with the payments. You may even end up receiving a refund.
Keep tabs on the filing due date. If your small business is struggling and you can't file on time, ask for an extension.
Mistake#5: Not Tracking Expenses Accurately
Last but not least, inaccurate records of expenses can lead to erroneous tax calculations and incorrect financial reporting, leading to adverse consequences.
You must keep detailed business records and ensure every expense is correctly entered into the system to avoid reporting inaccurate tax figures.
The problem is usually faced by small companies that don't employ accountants due to financial constraints, but it can hurt their business in the long run.
How a CPA Firm in Edmonton Can Help
Having a reputable CPA firm in Edmonton by your side can help your small business ensure accurate accounting and tax records.
Professional accountants will avoid these mistakes when filing taxes for your small business and use smart strategies to minimize your tax liability.
If you are looking for a professional CPA firm in Edmonton, get in touch with Duggal Professional Corporation today! We're a full-service accounting firm that focuses on providing all accounting, taxation,business reporting, and consultancy services to small businesses. Call +1 780 863 2224 to get started.