• Money and finance

How to get ready for income tax time

Futurpreneur | February 7, 2012

Martin Noury is a partner at the Doucet Noury SENC accounting firm. After working for a number of years at a manufacturing company, the young accountant decided to launch his own accounting business in 2010. Located in Joliette, Quebec, his office offers services in accounting, management accounting, taxation and management consulting to SMEs and self-employed workers. He has this advice for entrepreneurs that are preparing to file their income taxes:

  • Establish the business revenue and expenditure statements;
  • Have your income tax report from the previous year close at hand;
  • Keep a record of the costs related to the business use of one or more vehicles (the portion used for your business is deductible);
  • Keep a record of the costs related to the business use of your home (again, the portion used for your business is deductible).

Martin Noury strongly recommends that entrepreneurs not file their income taxes themselves. “Taxation has become increasingly complex. Someone who is not familiar with the process should not handle any income tax report on their own, even if he or she is equipped with tax software,” said Martin. “As a general rule, the lower the earnings, the more complicated the tax report will be because of the social programs that may be applicable.”

Martin also says that an entrepreneur should meet periodically with his accountant to discuss business accounting. “In many cases, meeting with your accountant on a regular basis can help you to avoid paying too much tax!”