Page 20 - INSIGHT MAGAZINE_April2025

ADVERTORIAL

Tips to Simplify Next Year’s Tax File

Lucci Racolta is a Chartered Professional Accountant and partner at Racolta Jensen LLP.
He draws on his experience to deliver public accounting services in assurance, accounting
and taxation to small to medium sized businesses and non-profits, with a focus on excellent
client service.

Organized files is only half the battle when it comes to preparing If you work from home, you can deduct a percentage of your
your taxes every year. Here are some tips you can put into action living costs so keep track of your utilities, telephone, insurance,
throughout the year to make next year’s tax data collection simple property tax and mortgage interest or rent expenses. The costs
(and ensure you do not miss claiming any expenses). have to apply to the workspace specifically, so if you fixed the
Stay on top of bookkeeping. ceiling in the kitchen but your workspace is in the guest bedroom
you can’t claim any part of the maintenance cost.
If you have a bookkeeper or a financial team then bookkeeping
is their top priority, but it’s still recommended that you meet with Keep last year’s tax file handy.
the team regularly to ensure they have everything they need, and Not only will it make finding your Notice of Assessment a lot
taken care of. If you’re a small business owner or contractor, easier – you need some of the information from that, particularly
tasks aside from paying bills and sending invoices may get put if you work as freelance or as a sole proprietor – but it’s a thorough
off, “until we have a lull.” You don’t want a lull, so it’s best to reminder of the documentation you need to provide again.
plan your bookkeeping strategy to perform smoothly around busy Hire an accountant.
times.
Keep track of your kilometers regularly. While you only have to focus on your tax file once a year, Racolta
Jensen LLP focuses on it every day and can provide you with a
At least monthly, but weekly is better. Maybe the last thing you complete list of deductions and credits, as well as help you avoid
do every Friday is tally up your kilometres and sip one more penalties by filing on time. We’re also up-to-date on changes to
coffee before you head out into rush hour. This will make the task the federal and provincial tax programs. View our offered services
much easier, particularly if your meetings are spread out across then visit our office at 47 Dickson Street in Cambridge, Ontario
Ontario. Trust us, your administrator doesn’t have time to go back or call (519) 622-1485 to book an appointment.
through your calendar tallying up the distance traveled to a year’s
worth of meetings, and neither do you.
File receipts as you get them.
Rather than tossing your receipts into a box, or filing them
alphabetically, file according to the Chart of Accounts. Business
expenses have differing percentages assigned when it comes to
taxes. For example you may be able to deduct 50% of your meals
but 100% parking fees from your gross income. This is a highly
generalized example, and there are conditions put on every aspect
of the Chart of Accounts so these expenses have to be entered
separately anyway. Your bookkeeping software will have an
itemized list ready for you, but as a sneak peek you can expect to
see meals, fuel, vehicle maintenance, software/apps purchases,
office supplies and computer software and maintenance, just to
name a few.

47 Dickson Street, Cambridge, (519) 622-1485
general@rjllp.ca | www.rjllp.ca

20 Spring 2025 www.cambridgechamber.com