Prepare Early for Tax Time
Thanks CPA BC for putting together three great tips for preparing for tax season! Although April seems like a long way away, it doesn’t hurt to prepare early. Every year tax time seems to “sneak up” on clients, and causes an added stress as they scramble in the last week of April to get prepared. With a few simple tips, tax time can be a whole lot easier & stress free! (Imagine!)
The deadline for the 2019 tax year is Thursday April 30, 2020.
Here are the THREE tips from CPA BC- Link here.
- Centralize (or digitalize) and itemize your files
Gather all tax-related files, receipts, and other paperwork in one place so you have it when you file. Consider scanning your files and saving them securely on your hard drive or cloud storage so you can easily access them. Itemizing and categorizing your files by the type of paperwork, such as medical receipts, tax forms, and charitable receipts, will also make your life easier when it comes time to file your income tax return.
By the way, scanning your receipts on a regular basis may be a good practice so you can not only prepare for the tax season, but also keep a record—just in case the CRA wants to review them later.
*** If you want advice on the best way to organize all your documents or to get set up with Quickbooks, be sure to let us know.
- Keep track of your capital gains and losses
Sold stocks or your home? Keeping track of your capital gains and losses throughout the year is important. Make sure you have records of your buying and selling prices to make it easier to file your taxes.
***Always let your accountant know of any changes that might impact your return. This might also involve a change in marital status, new dependents, etc.
- Don’t delay, start now
Get into the habit now and do not wait until April 30 to look for and review your files. By staying on top of your paperwork now and throughout the year, you can avoid surprises like forgotten receipts and missing documentation that could result in underestimated taxes. Once you have a system working for you, make sure to keep using it after the tax season is over.
***And be sure to get in contact with our office as early as possible to avoid missing important deadlines! Once you have all your documents, get in touch with us so we can get started on your return right away.
Source: CPA BC Website- 2019 RRSP & Tax Tips