1. Invest in Your Clients
In business, it’s no secret that you’ve got to spend money to make money. And in this case, the Canadian Revenue Agency tends to agree. Entertainment expenses incurred to entertain clients or win business such as concert tickets, or treating an out of town prospect to a premium steak dinner, can all be used to reduce your business’s taxable income.
2. Thank Your Clients
Not sure how to thank a client for their continued business and support? Take into consideration the fact that gifts to clients are considered a taxable expense when you’re selecting which items to add to their Christmas basket.
3. Consider Incorporating
Is your business set up as a sole proprietorship? You may want to consider incorporating to reduce the amount of tax you pay. In Canada, corporations and sole proprietorships are taxed at different rates and making the switch may end up adding to your bottom line. It’s important to note that there are a number of additional implications when a business changes its business structure, so it is important to have a discussion with a professional when considering this shift. To speak with one of our Chartered Professional Accountants about whether incorporating is right for you, connect with us here.
Related: 4 Powerful Benefits of Switching to Cloud Accounting
4. Employ Your Family
Do you own a professional landscaping company that could use an extra set of hands this summer? Could your University student use a bit of spending cash? Consider employing a family member within your business – the wages you pay reduce your taxable earnings.
5. Invest in Advertising
Have you been trying to grow your business? It’s no secret that the competitive landscape is fierce in today’s day and age. Why not consider an updated marketing plan? Consider having a social media strategy developed or hire a digital advertising professional to create and run some online ads for your business. By investing in your business’s growth by increasing your advertising spend, you can effectively reduce the tax your business may have to pay.
Chartered Professional Accountants in Edmonton
Gallo LLP Chartered Professional Accountants are proud to provide professional accounting services to Edmonton, throughout Alberta and Canada-wide. To learn about how Gallo LLP can help your business, connect with our team of Chartered Professional Accountants today.