Year-Round Tax Advice for Smart Planning

Tax planning is not just a once-a-year task. It’s a continuous process that can save you money, reduce stress, and help your business or personal finances thrive. We’ve seen that staying proactive and informed throughout the year makes a huge difference. With the right tax advisory services, you can navigate the complexities of tax laws and make smarter financial decisions.

Let me walk you through some practical tips and insights that will help you plan your taxes effectively all year long.

Why You Should Invest in Tax Advisory Services

Tax advisory services are more than just help with filing your returns. They offer expert guidance tailored to your unique financial situation. Whether you run a small business or manage your personal finances, these services can:

• Identify tax-saving opportunities you might miss

• Help you comply with changing tax laws

• Provide strategies to reduce your tax liability

• Assist with audits or disputes if they arise

  
  

For example, if you own a small business in Ontario, a tax advisor can help you choose the right business structure, optimize your expenses, and plan for quarterly tax payments. This proactive approach prevents surprises at tax time and keeps your cash flow steady.

How to Use Tax Advisory Services Effectively

To get the most from tax advisory services, you need to engage with your advisor regularly, not just during tax season. Here’s how you can make the relationship work for you:

1. Schedule regular check-ins - Meet quarterly or bi-annually to review your financial situation and adjust your tax plan.

2. Keep organized records - Maintain clear and updated financial documents to make consultations more productive.

3. Ask questions - Don’t hesitate to clarify anything you don’t understand. Your advisor is there to help.

4. Plan for major life changes - Events like buying a home, starting a business, or having a child can impact your taxes. Inform your advisor early.

5. Use technology - Many advisors offer online portals or apps to track your finances and communicate easily.

   
   

By following these steps, you’ll build a strong partnership that supports your financial goals throughout the year.

What is the 90% Rule in Canada?

If you’re self-employed or run a business in Canada, you might have heard about the 90% rule. This rule is important for avoiding penalties related to underpayment of taxes.

• CRA generally requires instalments if:

  • Your net tax owing exceeds $3,000 ($1,800 for Quebec) in the current year and

  • In either of the two previous years.

    
    

• CRA provides three instalment options:

  1. CRA-calculated method

  2. Prior-year method

  3. Current-year method

Here’s how it works:

• You must pay at least 90% of your current year’s tax liability or 100% of your previous year’s tax liability through instalments.

• If you don’t meet this threshold, the Canada Revenue Agency (CRA) may charge interest or penalties on the unpaid amount.

• This rule encourages taxpayers to make timely payments and avoid large tax bills at the end of the year.

  
  

For example, if your tax bill last year was $10,000, you should pay at least $10,000 in instalments this year or 90% of your current year’s estimated tax. If you expect your income to increase, paying 90% of the current year’s tax is safer.

Understanding this rule helps you plan your cash flow and avoid unexpected costs.

Practical Tips for Year-Round Tax Planning

Tax planning is a marathon, not a sprint. Here are some actionable tips to keep your finances in check all year:

• Track your expenses carefully: Keep receipts and records of all business and deductible personal expenses.

• Maximize deductions and credits: Know which expenses qualify for deductions, such as home office costs, vehicle expenses, or charitable donations.

• Contribute to retirement plans: Contributions to RRSPs can reduce your taxable income.

• Review your payroll setup: If you have employees, ensure payroll taxes are calculated and remitted correctly.

• Plan for GST/HST: If your business collects GST/HST, stay on top of filing deadlines and input tax credits.

• Consider income splitting: If applicable, income splitting with family members can reduce your overall tax burden.

• Stay informed about tax law changes: Tax rules can change annually. Keep yourself updated or rely on your tax advisor to do so.

  
  

By integrating these habits into your routine, you’ll avoid last-minute scrambling and make tax season much smoother.

How BTS Financial Services Supports Your Tax Planning

At BTS Financial Services, the goal is to be your trusted financial partner. They offer comprehensive tax advisory services designed to help you save money and reduce stress. Their approach is simple:

• Personalized advice tailored to your business or personal needs

• Proactive planning to avoid surprises and penalties

• Clear communication that makes complex tax topics easy to understand

• Support throughout the year, not just at tax time

  
  

If you want to benefit from expert guidance and make the most of your finances, consider reaching out for year round tax advice. Their team understands the Ontario market and can help you navigate local tax regulations effectively.

Keep Your Tax Strategy Flexible and Updated

Tax planning is not static. Your financial situation and tax laws will evolve, so your strategy should too. Regularly review your tax plan with your advisor and adjust it as needed. This flexibility ensures you stay compliant and optimize your tax position.

Remember, the best tax strategy is one that adapts to your life and business changes. Whether you’re expanding your business, investing in new equipment, or planning for retirement, your tax plan should reflect these goals.

By embracing year-round tax planning and leveraging expert tax advisory services, you can take control of your finances and reduce the stress that often comes with tax season. Start early, stay organized, and keep your strategy flexible. Your future self will thank you.