Seven key reasons why owner managed businesses (OMBs) should consider forming a long-term partnering relationship with a dedicated tax preparer instead of “walking-in” to a “shoe-box” accountant for their T1 General return:
1) Incomplete Business Records (half a shoe-box)
2) Large, complex transactions
3) Multiple Income Streams
4) Wealth & Risk Management
5) Incorporated businesses
6) Making the deadline
7) Tax Credits
Fundamentally, a discovery process is needed to deal with these complications. Due to periodic changes and updates in regulations, this may also require the leading of time-consuming investigations with software providers and the CRA (for incorporated businesses, a considerably more complex T2 returns process is always necessary).
The reality is that nearly all OMBs have the potential opportunity to “claw back” tax liability by fully accounting for their costs and claiming tax credits. Continuity and consistency can be expected benefits given that these issues almost always span a number of years of tax submissions, past and present. Therefore a “partnering” approach can work well in terms of collaboratively developing practical controls for record-keeping to ease next year’s burden.
Please note that although tax preparers can range from independent consultants trained in T1/T2 form preparation through to professional services CICA-qualified outfits the OMB may need to file the return themselves. Due to this variation in practice, this “learning snack” is a general cross-industry observation offered without liability.