Last updated: Nov. 8, 2017
What a Tax Professional Can Do for Your Family Business
Family businesses, big or small, are the backbone of the Canadian economy.
In fact, approximately 80% of all businesses in Canada are family-owned. On top of that, family-owned businesses are responsible for the majority of the country’s gross domestic product (GDP).
What are some of the key factors that help family-owned businesses succeed and prepare for the future? There are a number of effective ways to handle crucial aspects of the business, such as family and business tax planning, bookkeeping, and financial planning.
While many family businesses have an informal management style, when it comes to business taxes, it’s best to hire a professional accounting service.
Many business owners may balk at the notion and think an accounting software program will suffice, but it won’t. Hiring a tax specialist can:
- Help manage the business accounts
- Maximize profits
- Help find tax loopholes
- Save the business money
Here’s what else tax professionals can do for you.
They Understand Your Business
Tax experts understand the different business cycles and can be there for each stage of development.
When a business is in the startup phase, a tax expert can advise on what type of company to form, provide guidance on the business plan, and help make decisions related to personal finances.
If the family business is operational, tax professionals can help manage the day-to-day bookkeeping, find cost savings, manage tax preparations, ensure business changes will not hurt the company financially, and help with succession plans.
During a growth period, a tax professional can provide financial reports and insight on opportunities, help with expansion plans, and even safeguard against an audit with the Canada Revenue Agency.
In the unfortunate event the family run business is facing financial difficulty, they can help identify problem areas, design plans that get finances under control, and work with creditors.
Maximize Tax Deductions
When it comes to running a family business, not all tax professionals are alike. That’s because there are different tax rules for different types of businesses.
Tax experts that work exclusively with small businesses, farm operators, and contractors are going to be able to help you maximize your tax deductions. Because they know all the legal family-business loopholes, they can minimize your tax burden, decrease the amount of taxable income reported by the business, and reduce your overall tax liability.
One way a tax professional can prevent an audit is to keep the books up-to-date; this ensures the businesses income and expenses are in proper order and the information is correct.
A professional tax consultant is also up-to-date on Canada’s ever-changing tax laws and knows what the business can legally deduct. Helping you find legal loopholes to lower your taxes is what they do.
If the Canada Revenue Agency calls with a question or is looking for additional information, it’s nice to know the tax professional who prepared and filed the taxes is there to help.
Using someone who is not familiar with Canada’s extensive tax codes could result in liberal deductions that, according to the Canada Revenue Agency, is tax evasion.
FBC, Helping Businesses with Family Business Taxes
Most family-run businesses in Canada are concerned, first and foremost, with running their business and making it a success. An accounting professional can help lift some of the burden by looking after your business needs. That’s why family-run businesses in Canada turn to the tax experts at FBC.
Since 1952, the tax professionals at FBC have worked exclusively with small business owners, farmers, and contractors. Since then, we have helped tens of thousands of Canadian businesses owners from coast-to-coast minimize their business taxes and maximize their assets.
For more information on FBC and the services we offer, call us today at 1-800-265-1002 or submit an online form and an FBC tax specialist will contact you at your earliest convenience.