Personal income tax season may be over, but many entrepreneurs and small business owners are nervous about what their tax bills will look like this year.
Shadi McIsaac is the CEO and Founder of Ownr, an RBC Ventures company that supports entrepreneurs to create and manage their businesses. She said many first-time small business owners are confused about how to properly file their returns.
“It’s difficult to know where to start. Over the past couple of years the deadlines have shifted. On top of that, federal and provincial relief programs have evolved or fluctuated. This is adding a level of trepidation about filings and what small business owners may owe.”
A survey conducted by Ownr found that 30 per cent of small business owners are concerned about providing proper records or are confused about deductions they’re eligible for while 31 per cent are fearful of the sheer tax burden their business will face this year.
Each business has its own filing deadline as corporate income tax returns must be filed based on the end of their tax year. Returns must be filed no later than six months after the end of each tax year. McIsaac recommends business owners work with certified tax professionals to ensure their filings are correct.
Once the stress of tax season is over, entrepreneurs will still be faced with inflationary pressures. Ownr’s survey found 33.5 per cent of small business owners rank inflation as their biggest worry and 38.9 per cent are concerned about cash flow.
But it’s not all stress and gloom for entrepreneurs.
Natasha Acuba-Bailey is the owner of Manilla Kitchen in Vancouver. Driven by a desire to showcase traditional Filipino culture and cuisine, she started jarring her family’s adobo recipe during the pandemic.
Her business grew to the point where this year, she quit her job in retail to pursue the business full-time. Acuba-Bailey knew how to make her product, had no problem putting in 16-hour days and getting her product to customers — it was the business administration side of things that was a challenge.
“I didn’t know who to go to. I just really had to do my own research,” she said.
Acuba-Bailey said it was initially confusing to find the information in one centralized place, however, Ownr helped her find everything she needed to make her filing easy.
“I wish there was something like an entrepreneur page from the government,” she said. “When I was incorporating my business I went to OneStop BC but I was like okay I don’t know how to file these, I don’t know where to go. Then I came across Ownr. It was so seamless for everything I needed.”