Now that we’ve made it through the 2019 tax season, there’s no better time to think ahead about how you can stay proactive about tax planning for 2020. If you want to secure the maximum value possible from your hard work as a business owner, there are a few tips to keep in mind.
Take Stock of Your Business Goals
The journey of running a business is shaped by the objectives you set and the circumstances that arise along the way. These change all the time, affecting various aspect of your financial strategy, including tax planning. With the 2019 tax season behind us, it’s essential to take stock of how you expect your enterprise to change throughout this year. Will its corporate structure or ownership change? Are you anticipating significant and sudden growth or expansion? There are countless developments that can bring new tax concerns into play or open up new opportunities. Whatever the case may be, your tax planning methods should evolve as your company does.
Stay Updated on Tax Policy Changes
As you make your way through 2019, remember that federal and provincial tax policy are dynamic entities. Stay informed on policy changes so that you can adjust your tax planning accordingly. For instance, the federal small business tax rate was reduced from 10% to 9% in January of this year. Additionally, beginning with the 2019 tax year, there will be new limitations on tax deferral opportunities connected to passive investment income within private corporations. The government will also be implementing measures to enhance capital cost allowance deductions for zero-emission vehicles used by businesses. Keep yourself in the loop!
Work with an Experienced Corporate Accountant
The above considerations and all others related to your tax strategy are best optimized with the right guidance. This is by far the most practical and effective way to plan ahead, enhance your efforts, and avoid costly pitfalls. The right specialists can offer corporate tax planning solutions tailored specifically to your business goals and circumstances. It’s particularly advisable to seek CPAs who have experience with businesses of all sizes but can offer a direct and personalized approach. The world is full of chartered professional accountants, but only the best can help your company remain as dynamic and efficient as possible from one tax year to the next.
Cook & Company is dedicated to providing fully up-to-date and effective tax planning solutions for entrepreneurs all across Canada and the United States. Our Calgary-based corporate accounting office has everything you need, so give us a call at (403) 768-4377 to get started!