How to Get Ready for Canada and US Tax Preparation before Hiring a Professional

Hiring a professional to prepare your tax file is more important than just an accurate record. In fact, it saves you from IRS’ further investigation into your taxes. In many businesses, to save the hustle, it’s considered ideal to hire an income tax expert to deal with the nitty-gritty of the tax preparation, especially in the context of Canada-US aka cross-border tax preparation. But to provide the tax accountant with all the right and organized tax records preferably well ahead of time is a crucial matter.
To avoid penalties, maximize the tax deductions, and getting the return file before the deadline, following information has to be provided to the tax accountant:
Providing accurate business records
• Financial statements including balance sheets, income, and cash flow statements about your business
• In case you have employees, provide payroll information
• Expenses of your business including that spent on advertising, traveling, rent, internet and telecommunications, shipping and raw materials’ cost, etc.)
• Disposal and additions in your assets for the year, such as land, edifice, machinery, vehicle.
• If your home is used as workplace

Previous tax records
• A copy of last year’s tax record (if any) is needed. This point is required if you happen to be a new client
• Paid amounts via installments –if you have made any payments in installments, mention those.
• Notice of assessment from last year
• Other relevant records such as
• Whatever applies to your business, it is important that you mention it before the accountant such as whether your business is a sole proprietorship, partnership (which requires you to file a T1 –personal income tax return), or your business is an incorporated company (here a T2(corporate) income tax return needs to be filed).
• For self-employment and commissions—T4A
• For partnership income—T5013
• Income coming Trusts—T3
• Income extracted from investment—T5
• In case of contribution slips—RRSP
• Useful information about dental and medical receipts, donations from charity and child care information also needs to be provided to the tax accountant

Choosing the professional rightly

The tax preparer is, after all, going to prepare taxes for you. And no matter how much preparation and hard work you put in to aid the preparer, if the professional himself lacks either qualification or experience or the necessary skill to excel at his job, it is going to be a pain in the neck for you. For example, a worst case scenario could be trusting a professional tax preparer with tons of valuable information and documentation about your business and not having them sign the return. This is something you would like to avoid at all costs possible. Some tips to choose the right tax preparer include asking them about their relevant qualifications and experience and doing detailed research on your own about their profile.
Therefore preparing oneself way ahead of time is not only crucial but a fairly smart move as well. It saves the trouble that might otherwise impend in time.

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