Working for yourself has its benefits, but when it comes to calculating your taxes, you may run into a few challenges. If you are self-employed and need to prepare your income tax return, figuring out how to claim various business-related expenses may not always be as straight-forward as reporting your income if you are a part of a larger corporation. If you are reporting your income for the first time as a self-employed individual, read on to learn more about the steps you can take when it comes to year-end preparation.
How to Prepare Your Taxes if You are Self-Employed
According to the Canada Revenue Agency (CRA), self-employment income may come from the following: a business, profession, commissions and / or farming and fishing. If you have multiple sources of self-employment income, separating your incomes and expenses by type is a good place to start. Here are some further steps you can take when preparing for year-end as a self-employed individual:
- Gather your personal details including Social Insurance numbers for you, your spouse and any dependents, dates of birth for all of above and any other tax information such as T slips and anything else you would report outside of your self-employment activities.
- Next, you will need to have on hand any self-employment information including the name and address of your business, the industry code and your GST/HST number, partnership number or business identification number if applicable.
- Assemble all your documents that show how much you earned in self-employment income and claim all your business related expenses. If you need assistance, a professional bookkeeper can help.
Contact Us for Comprehensive Bookkeeping Services
Even if you are self-employed, you are not alone. At Tandembooks Inc. we know that running your own business takes a lot of time and effort. Our team wants to help you and your business operations succeed by providing high-quality bookkeeping services to help you manage your finances. In addition to our comprehensive bookkeeping solutions, we also offer business start-up services, where we handle all the administrative aspects of your business including staffing, office location, financials and more.
If you are looking for reliable bookkeeping services for your small business, contact our experienced team of consultants who are here to help you stay on top of your finances and keep you in compliance with any government regulations. Give us a call at 613-800-8822 or fill out our online contact form for more information.
