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SBA: Tax Season

Location: Toronto (ok, Mississauga if you're that picky), Ontario, Canada, Earth.. blah, blah.

Challenge:  Tax Season end is nearing and I have never done taxes (yes, yes, call me spoiled. Whatever).
Furthermore, with my own small-side ISV business startup (~1 year running, sole proprietor), the tax stuff scares me and am looking for not only assistance in filing, but some form of guidance (aka. education/tips).

Objective:  Finding a good (aka. patient, ethical, and trusworthy  (am I asking for too much?), and  cheap* "very-small business" accountant.

I have my stuff in fairly good order but the paperwork still needs to be done.  My focus is my business, and not becoming a CA.  There is much terminology and other details for me to learn.  I plan to take a course or something, but after this tax season.

I've noticed there are some locals here and am trying my shot at networking through referrals.

sedwo
Friday, April 16, 2004

Well define cheap, most accountants will charge you in the $1000-$1500 range to do T4s, GST return, federal and ontario corporate returns, and two personal returns (you and the wife). If you are in that range, I have been very happy with Peter Wesiner in Newmarket. His website is located here (http://www.taxhome.net). Very thorough and pleasant to deal with.

Gerald

Gerald
Friday, April 16, 2004

Thank you.

But too expensive.  Maybe when the company makes a much higher profit.

sedwo
Friday, April 16, 2004

Keep in mind that your company, not you personally, should be paying for this, so that is a virtual 50% discount (i.e. if you paid yourself the equivalent amount you would have to pay 50% to the government in payroll taxes). Of course this is only useful if the company actually has any money in it's bank account :)

To be honest I probably would not trust someone who was willing to do it  for a lot less, you get what you pay for and one thing you don't want to get screwed up is taxes. Another option might be to use something like QuickTax and do it yourself but one advantage of using an accountant is your less likely to get audited (CCRA and accountants have a bit of an incestuous relationship on this matter)

Gerald
Friday, April 16, 2004

As a sole proprietor, you do not have to do most of the things that Gerald mentioned.

You will need to do T1 a return, T4 return (assuming you have employees -- you should have done this by Feb 28), no T2 return you are not incorporated, GST return if you have registered to collect GST (you must do this if you have over $35,000 in gross income), PST return if you registered for this (generally you need to sell shrink wrap for this).

If you are still in the early part of the startup process with mainly expenses and very little income you should fill in T2124 -- Statement of Business Activities with your T1 return.  (see http://www.ccra-adrc.gc.ca/E/pbg/tf/t2124/t2124-03e.pdf for an idea of the form).

Unfortunately I cannot recommend anyone for you.  I do my own taxes...and no I don't want to do yours...

O Canader
Friday, April 16, 2004

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