7 Tax Deductions For Small Businesses in Canada

Advertising

Advertising is a critical element to promote business and most businesses rely on them to spread the word among their audience. From print to online, several platforms are used by businesses to promote their products and services. You can use this expense to write off your taxes. However, there are certain conditions associated with this tax-saving measure.

• Your advertisement should have appeared in Canadian print, electronic and broadcast media.
• It should have 80 percent of journalistic material and 20 percent of advertisement.
• If you have invested in online advertisements on your website domain or run PPC or banner advertisements, you are eligible to write these expenses down too for saving taxes.

If you need help to plan your taxes, you may consider hiring small business bookkeeping and accounting services by reputable companies such as Apex Accounting.

Donation

If you are channelling a good part of your income to donation, it could serve as a great way to save taxes. It helps to keep the following essentials in mind:

• The donations must be to a Canadian entity registered with the CRA.
• Note that donations made to a not-for-profit organization such as sports teams cannot be claimed as an expense.
• Most charity organizations give out receipts to their donors. Ensure that you have all the receipts for your donations to file your taxes.
• Anything ranging from hard cash to the mileage you travel with your vehicle can be claimed.

For detailed advice, you can hire professional accounting services.

Amortization of Tangible and Intangible Assets

You can claim the depreciation amount of all tangible and intangible assets as expenses. From machinery to computers, the whole range of tangible assets that you use for your business can be claimed under expenses. Intangible assets consist of the brand goodwill that you have built with your target audience and copyrights can be claimed as well.

Bad Debts

If you have declared a certain amount as income but have not been able to collect the debt, you can claim it as bad debt. Similarly, if an account receivable turns into bad debt, you can claim the amount too. As per the CRA, you can claim all bad debts except the ones garnered through mortgage and debts resulting from a conditional sales agreement. Professional accounting service providers can help you understand bad debts and their declarations better.

Employee Benefits

If you have a sizeable number of employees and you offer them benefits such as insurance, you can show these as expenses on your taxes. Employee benefits not only keep your employees happy and motivated but also help you save a significant amount on taxes. To keep a track of the employee benefits you offer, you can rope in professional accounting services.

Insurance

Business insurance is a great way of saving taxes. You can invest in general business liability insurance to protect your business from lawsuits filed by individuals getting hurt on your premises or due to your products or services. The other insurance you can invest in is business property and interruption insurance. This insurance covers all of your building and equipment assets and offers protection in case of damage due to a natural disaster.

Interests and Bank Charges

Another way of saving taxes is by claiming expenses for debt interest and bank charges. If you have any interest on your debts that you have borrowed to earn profits through any sort of dividends, royalties, interest, rent, and more, you can write it off. You can also include the bank transaction charges that you bear as expenses. However, remember that these charges have to be made to the business bank account. If you need expert advice on tax saving, you can get in touch with Apex Accounting – the leading name for small business accounting services.

Reach Out for Professional Bookkeeping Services for Small Businesses!

Apex Accounting offers professional accounting services to help you with all your financial transactions. You can also consult our experts to know more about affordable accounting and taxation services for small businesses. To learn more about our services, contact us by either calling us at (649) 979 7728 or writing to us at info@apexaccounting.ca.