Death and taxes are the two things that are guaranteed in life. Unfortunately, the scare of tax lingers on even after a person dies. After your death, Canada Revenue Agency would be interested to know how much money you earned in the year you died. Your loved ones need to file a T1 personal income tax return. This return is known as terminal tax return or more commonly as date-of-death return.
The amount of tax to be paid by you after your death depends on the type of assets you owned, whether you named any beneficiary or it was a joint ownership. It is better to hire an accountant to review the estate and ascertain the tax bill payable. We must prepare ourselves so that we can pay the tax debt later before we hear that bad news. The Tax Return should be filed by 30th of April, like it is done by everyone else. These are some of the requirements and benefits of filing tax returns.
- If the person died from January 1 to October 31 then the return should be filed by April 30 in the following year. For deaths that happened from November 1 to December, the return should be filed within six months from the date of death.
- If you did not file the tax return for last year, then it should be filed within six months from the date of death, and pay any tax you owe. You can have the necessary forms from CRA, T4 / T5 are the necessary tax information slips you need to have for this.
People want to what are the benefits of filing tax returns and how they can claim for twenty-five hundred dollars towards Canadian Pension Plan Death Benefit. For the deceased, the final tax return should not be included in the CPP death benefit.
- On the other hand, if the entire proceeds of the estate are received by one beneficiary, then the concerned person has to pay personal tax return. But if there are more than one beneficiary, T3 trust income tax return should get included in CPP benefits for filing tax returns.
Many people want to know does their accountant need to make the final tax return. The fact is you can prepare the tax return on your own. But if you hire an accountant he or she may be able to give valuable inputs.
Along with personal return T1, you are also required to file return for the estate itself, through T3 income tax return. CRA is interested in knowing what your income through estate is. You are required to file this tax every year in order to have the benefits of filing tax returns.
This needs to be done within three months after the death of the person, till the time estate proceeds are completely distributed. And for the partial year, the last T3 return is also required, till the distribution date. Benefits of filing tax returns are that our government has the financial input to implement its plans.
It is very important for the person who has a dream of becoming a successful entrepreneur to follow a proper business start-up strategy to achieve his in a proper and regulated manner. It all depends upon the approach and strategy of business plan which he uses to execute his dream of becoming a successful business owner. One should have a proper strategic planning of the business so that the critical points of the business are indentified at an early phase.
To plan the business idea into the proper strategy, one has to approach every ked area associated with it in order to ensure the optimum and desired results. Here is an overlook of some of the key areas which should be approached for the business that has just started:
Define your Business and vision:
It is the first and foremost thing that is needed for business start-up. Defining the business and vision is indeed as very important stage and must be stated carefully and without any ambiguity so that the person associated with is can have a clear picture of our vision and goals. The phase majorly focuses on the targeted audience, product services, business clients, plan of the growth. These questions can be solved and typically implemented if vision and business is defined in an appropriate manner.
Goals of Business:
Goals of the business is nothing but a strategically plan which is made in order to achieve success in a very short span of time by following the goals which has to be achieved. If the business is newly started it is extremely important to define the short term goals say for a period of 6 months rather than long term goals. The phase will provide the outlook what the business wants to achieve in the above stated span of time in terms of growth, quality and services
Understand your Targeted Audience and customer:
It is essential for every business to focus on his targeted audience or customer in order to make them satisfy and fulfill their requirements as well as expectations which they desire being a customer. Every business should work on having a large customer base as they are the ones which will enhance the growth of the business in a quick around time. Performance of the business will also depend upon the customer’s satisfaction level.
Learn From the Competitors:
For a good business start up strategy, it is essential to learn and grasp lot of things from the competitors in order to have a fair idea of the customer needs and requirements which will provide you the definite aid to understand the market.
Finance is one of the most important areas of any business and should be handled with extreme care. It is important to define it in a regulated manner by defining break-up points as well as profit margins which indicates the growth of the business.
Plan Your Marketing Strategy:
Every business should identify the market trends and even various methodologically strategies, tools and processes to achieve it for proper growth of the business.
Canada Child Tax benefit is a tax which is imparted to the families living in the Canada by the Canadian Government. It is basically a tax free monthly payment given by the Government to all those families or parents who needs money to raise their children up to the age of 18 years. It is majority divided into two main components one focuses on the low and middle class Canadian families and the other one provides definite assistance and help to the low income families having a necessity of acquiring this help from the Government in the form of tax benefit.
Eligibility Criteria to avail this tax benefit
Canada Child tax befit cannot be provided to everyone. It is given to only those Canadian families which meet the proper eligibility criteria as stated by the Canadian Government in order to avail the tax benefit.
- A person must be the Canadian resident.
- Must be the primary caregivers of the child under 18 years of age.
- If a person is not Canadian resident then one can avail the tax benefit if a spouse or partner is:
- Canadian resident.
- Protected person
- Permanent resident.
- A temporary resident who is residing in the county of Canada from the last 18 months.
These are some of the criteria which need to be fulfilled by the person in order to ensure the benefit of the Canada Child Tax.
After the eligibility criterion has been met by the Canadian family, another important criterion is to fill the application form to apply for this benefit either through mail or by applying online. One can fill the relevant and necessary information in the application form as provided by the Government under the proper guidelines in order to have a benefit of the Child Tax.
The amount paid under the Canada Child Tax benefit plan majorly depends upon two things which is income tax and benefit returns. The amount paid under this tax can be even adjusted in case the size of the family increases during the end of the year and some other issues.
Dates and Deadlines
The Canada Child Tax benefit is issued for the Canadian family very 20th day of the month and even one week earlier in December. For more specific dates one can visit to the official website and can keep a track of their status of issuing the tax benefit plan. It is always advisable to the individuals belonging to the Canadian family who has applied for the Canada Child Tax benefit plan to contact to Canadian revenue agency in case one do not receive his CCTB within five business days after the issuance of the tax befit plan.
Therefore, this is a brief overview on the Canada Child Tax benefit (CCTB) for the Canadian residents and families provided by the Canadian Government. One can take the required information from the official website to apply for the Canada child tax benefit plan.
Many people will agree that it is really difficult to sustain ones business in this period of tough economic recession. Companies are looking at every corner to cut down their expenditure, and one such effective way is to outsource as much work as they can. Many companies have implemented this technique and are able to survive in this tough period. Outsourcing need of Accountants and Bookkeepers in business is now different.
Still many companies are unaware of the benefits of growing outsourcing sector. Moving out IT work to other companies has been practiced for decades, but outsourcing bookkeeping is still unheard by many. Here we highlight some benefits of outsourcing the need of Accountants and bookkeepers in business.
- Save Expenses – saving money is the first main reason of outsourcing work. But this should not be the main objective of moving out work. On an average a company is able to save nearly 20% of in-house bookkeeping expenditure. The fact that you are not required to pay the bookkeeper every month saves you money. Moreover, you don’t have to train an outside accountant. Small and medium size business feel the need of Accountants and Bookkeepers in business but for some it is too much expenditure. They can save considerable money by hiring a bookkeeper service.
- There will no expenses related to employment – You can save much more than just the salary by outsourcing your work. You are not required to make government contributions, pay employees taxes and other benefits. You will save yourself from employees’ compensation, health insurance, retirement benefits, government contribution, travel insurance, retirement, and vacation.
- Less Office Equipment – When you employ an accountant you have to provide him office space. You have to buy software license and computer systems and related things, all this will add to the expenditure. You have to update software license as and when required and train your employee accordingly. This is too much to ask from a small or medium size business. By outsourcing the need of accountants and bookkeepers you can save on these costs.
- Professional Advice – outsourced accountants are not directly attached to your business. Hence, they will not form part of office politics. This means, you will have impartial, unremitting and error free accounting services. This is particularly important during tough fiscal times and the need is to make tough decisions.
- Free Time for you – for business owner, bookkeeping can be a time consuming and tedious work and it can be quite frustrating at times. Thanks to improved infrastructure and technology, outsourcing organizations are quite effective in bookkeeping services. You don’t have to train outside bookkeeper and it will save you 50% of the cost. These trained experts can be exploited by your finance managers at a reasonable cost. You will have more control on outsourced bookkeeping. They will update the software of their own, and satisfactorily fulfil your need of Accountants and Bookkeepers in business.
Small Business Accounting will help you to run your business function properly and smoothly. Accounting is a key factor which is essential for very every business whether it is small sized or medium sized. It is indeed a very important aspect for every business as it helps to keep a track of financial records and expenses for business which depicts the growth of the industry.
Tracking the financial records in an accurate and appropriate manner by the accountants having vast experiences and sound knowledge will help to achieve long term success for the entire business. Managing them properly is a complex and tedious task if it is not done by any professional in this field as the professionals accountant will only have a proper expertise and understanding of all these in-depth processes and will help the business a proper growth in a lowest turnaround time in a best possible way.
As many small business owners try to manage all the accounting and bookkeeping by themselves, but it is indeed very difficult for them to achieve this task as they being a owner has many important tasks to deal with. It is therefore a responsibility of the professional accountants and bookkeepers to maintain the financial records and expenses in proper documents and prepare monthly financial reports in order to depict the whole picture of the small business scenario. This is possible only if the small business owner through his undemanding and knowledge hires professional accountant from outside which can provide them definite aid and perfect solution regarding all the major problems faced by the business in the early beginning phase of the business.
The task of hiring the professional Accountant and Bookkeeper is not easy for the small business owner but it is quite important to hire them as they play a very important role in upbringing the whole business. Their vast and diversified knowledge will help business to achieve the optimum results in a quick around time. In today’s scenario, there is much software accounting software present in the market which makes the process and task of bookers extremely simple and easy as they are the one which is responsible for creating a proper database with proper security. But these softwares work properly and efficiently only if they are managed by some capable and efficient professional person otherwise it does not reveal reliable results.
It is advisable for the small business owner to have a separate account for the deposits and business expenses in order to have a clear over view of the finance in the business which will not let mix the business and personal transactions in any case possible. Further this will also helps to track the financial records quite easily and simply in a regulated manner. This is the major role played by the accountants and even plays a major role in depicting the growth of the industry by filling the summarized information on the tax returns file in order to have a benefit of tax returns and ensures tax savings as well.