Let's face it: managing projects, getting new clients or working on that new big idea take up most of our time, and filing taxes (rarely an exciting activity) gets almost always pushed to the bottom of our to-do list. I, for one, don't look forward to sifting through my shoebox once a month, checking if I didn't miss anything before handing it over to my bookkeeper.
As taxes are part of your obligations, understanding what is involved will save your business money. A recent article in Moneyville (a publication of TheStar.com) talks about 7 tax mistakes people do with their taxes, and among them, claiming out of the ordinary expenses and categorizing a hobby as a business can trigger red flags for the CRA. Canadian Bookkeepers Association also talks about costly mistakes small businesses make - and two of the most common are: not saving receipts less than $50 and miscategorizing expenses.