Canadian Tax Planning Solutions

While many of us know the importance of tax planning, it’s common to avoid any tax-related issues until it is time to file your taxes, at which point, it is too late. There are a number of significant financial decisions you should make during the year that will have a substantial influence on the amount of taxes owing. Without the organisation and forethought tax planning provides, it is easy to miss or miscalculate income exclusion rules, essential tax credits, retirement plan contribution possibilities, and investment strategies.

As a practising physician, having an effective plan in place is vital as this will allow you to maximise your assets while also ensuring that you achieve your long-term objectives. Let’s take a look at a few tax planning solutions from our experts. 

Why is professional tax planning so important?

Many Canadians don’t think about how they might save money on taxes. The majority will simply file their tax returns at the end of the year and that’s it. Tax planning throughout the year, on the other hand, is what saves you money.

Having a good tax plan in place from the start of each year will save you a lot of work, especially during tax season. One of the most common problems that many physicians have is a lack of time to invest in long-term financial planning. Having a strategy in place will save you time, whether you find yourself contemplating a purchase, or arranging your finances before tax season and attempting to figure out what you owe. In addition to the time saved during preparation, you will also avoid errors and oversights that can occur when filing your tax return at the last minute. 

Your business and tax planning

Tax preparation for your business is critical, and engaging specialists to assist you in growing your business can be extremely beneficial. This will give you more time to concentrate on what you do best: running your practice and helping patients. 

Medical professionals have extremely hectic days, limiting the time you have to oversee your business’s tax preparation and financial planning. Many physicians who are overdue on their filings call us and explain that they are too busy to handle the tax preparation, and seek assistance from our team. In more egregious cases, the Canada Revenue Agency has frozen their bank accounts, which is never a favourable outcome. 

In order to maintain a healthy business without risking interference from the CRA, it’s crucial to take a closer look at some key areas in your practice. This could include what expenses can be deducted in your company, how to pay family members for work done, ensuring payroll taxes are remitted properly, creating a retirement savings plan, and more. 

Your family and tax planning

Our experts recommend filing your family’s taxes collectively rather than individually. In some cases, tax credits are calculated depending on the family’s income, and some benefits can be passed to other members of the family. As a result, every family needs a comprehensive tax strategy. A few hours spent examining your tax status by one of our expert advisors may pay off big time and help you arrange other aspects of your finances. 

Plan for tax season with a skilled expert 

Having a team of specialists who are experts in their fields can assist you in both guiding and educating yourself on the financial and tax preparation side of your functioning practice.

With an expert by your side, this will enable you to fill in the gaps in your own knowledge, make better decisions, protect yourself and your family, and prepare for the future. Let’s get started on your financial path together by scheduling a free consultation now.

About the Author: Alex Powell

CPA CA, Director

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