Finances, if they are not the most stressful aspect in your life, they definitely rank pretty high on the list of stress causers. Sticking to a budget, making monthly payments on time and saving money for vacations and emergencies can all be daunting and sometimes feel hopeless. And if you’re self-employed, keeping personal and business finances separate can be a nightmare. And then there are taxes. Having to organize your income and figure out your taxes ranks right up there with getting pulled over for a traffic violation. It’s a necessary part of society and while filing taxes may be painful, they are worth it. If you’re self-employed and worried about filing taxes or have questions about revenues and expenses or audits and appeals or whether you should buy or lease your company car or would like help filing your personal taxes this year, finding an office specializing in tax and accounting services may help to eliminate any unnecessary stress.
Self-Employment FAQ’s
Taxes are confusing. Rules and regulations seem to always be changing, so if you’re not a tax professional, filing your taxes as a small business owner or a self-employed worked can be stressful. Here are answers to two common self-employed questions:
Which Business Accounting Method Applies for Me? Accrual or Cash?
The Accrual business method is dependent on revenues being reported when they are earned, which is more often than not before the cash is in hand. This is the same for expenses. Expenses are reported on an income statement when they occur, which is usually before the payment is made.
The Cash Method allows you to declare revenues on your income statement when you have cash in hand from your customers. And expenses are declared on your income statement when they have been paid for.
Should I Buy or Lease a Company Car?
This is a fairly common question and can be confusing, but the major difference is that for cars costing over $30,000, it is advisable to lease due to HST (Ontario’s Harmonized Sales Tax) restrictions.
The Reason Why You Need Advice
If you are new to being self-employed or just don’t like doing your taxes, it’s okay. Accountants have jobs for a reason. Like lawyers, there are ever-changing laws and taxes to keep up with. Even if it’s a one-time appointment, finding tax and accounting services in Toronto, Ontario can be a huge help in assuring you get the most out of your finances, income and business.
For more information about tax and accounting services in Toronto, Ontario, visit The Taxperts Group.
