Year-End Tax Planning

This is a critical time of the year to start looking at how much income tax you are paying and to consider strategies that help you to keep more of your hard-earned money in your pocket. Planning lets you pay way less to CRA in the new year. Lianne Hannaway is a wealth expert who grew up in Winnipeg with a dream to own a shoe store one day but eventually ended up on a path to becoming a CPA. Raised by immigrant parents, Lianne had the zeal to become financially independent. She has worked with various reputable, successful organizations over the years until she decided it was time to pursue her dream of helping small business owners build successful lives and/or businesses by creating a strong financial path. Her business Wealthnuvo is very passionate about helping women grow their businesses with strong financial backing, so they are set up for long-term success.  Enclosed are her suggestions from our recent conversation.

Women need to know tips as they plan for the new year; the first is itemizing your expenses and getting a handle on your spending because not every dollar that goes through your business is treated equally. Log all expenses according to categories and ensure they are the best use of your funds. Also, organize to work with an accountant, be sure to get a good accountant that can guide you through the process of paying as little taxes as possible and help you plan ahead for the tax bill, so it’s not a surprise.

Have your accountant get you on a program that keeps you on top of your taxes. Remember that accountants have different niches; some are good at taxes, others are more analytical, and some are more tax filers. Figure out which type of accountant you need so you engage the right accountant and one that understands your industry. For business owners, getting an accountant that can help you streamline all the numbers and review those with you monthly or quarterly is essential. Doing this saves you taxes and gives you an idea of where your business is and what you can or cannot afford as you continue to grow.

How you can identify a good accountant is by asking questions! What kind of clients do you work with, how do you like to work, how do you plan to engage with me, how often are we going to meet, and what comes out of our meetings? These questions need to be answered for you to decide to go ahead with an accountant. Asking will help you vet out the most suitable accountant for your business instead of just getting one that will only help file your taxes when it is time. You want to choose an accountant that makes you comfortable enough to have honest conversations about your business and personal finances and get support in return.

Women find it hard to have conversations about finances because they were never really taught about money, and the system only supports discussions about finances. From a young age, many women are taught not to value their work and struggle to charge what they are worth for their services when they start a business. Now women must unlearn some of those narratives and navigate this new reality. It can be challenging because they tend to return to that mindset. With more and more successful women in business, there are great examples women can learn from and be motivated to start taking proper financial steps for their future. Financial traumas are real, and everyone must be intentional about creating wealth and building sustainable, successful businesses that pay them what they deserve.

Take charge of your money today, and let us help you build your financial fortress in these uncertain times. We are happy to have a 30-minute conversation where we delve into a customized retirement plan for you. Please reach out to [email protected]. Also, feel free to share your questions with us here or on our social platforms.