The common public does not welcome taxes with open arms, the reasons being ever-increasing financial burden and complexities associated with the tax laws. What certainly brings smiles is the income tax refund. This is free money. Rather than splurging money on unnecessary items, you can build up an emergency fund. It is a relief to know that the tax legislature entities the citizens to certain benefits. These enable one to deduct certain expenses from one’s income or even from tax bill through exemptions also termed legislative grace.
One could consult public accounting practices. Companies or individuals specialized in tax accounting offer the following services:
â¢Personal Financial Planning also referred to as tax planning
â¢Decreasing taxes and increasing returns
â¢Estimation and preparation of taxes
â¢Representation of an entity at tax audit
â¢Business loans and mortgages
â¢Assisting with tax rate analysis
Besides, these professional also offer help to business houses in the areas of starting up partnership or proprietorship, acquiring investments, tax reporting, implementing strategies during tax return and planning processes.
For many, money takes centre stage in life. The way it is perceived by one strongly influences the way it is spent and handled. It is very important for one to educate self about financial planning.
One can consider the idea of signing up with brokers and creating an investment plan, thus building up a portfolio. The initial steps to building a portfolio are to open a brokerage account. This account enables one to purchase stocks, bonds, mutual funds and other investments by paying the professionals to buy or sell the items one directs them to. Once the account is opened, one can kick start with investments. All brokerages provide the option of setting up automatic monthly withdrawals. This implies that a specified amount is transferred each month from the savings account to the brokerage account. This becomes an easy way to start building up one’s equity. The principle is very simple. If you don’t see it, you won’t spend it.
There is no need to come up with a big amount prior to making investments. In recent times, scenarios have changed. One can start with investments with very little money up front. One can invest in companies by purchasing stocks.
The accounting professionals would also advise one to invest in a Retirement Savings Plan. This is qualified as a tax deduction. One could consider Guaranteed Investment Certificates and bond investments. Every individual must set financial goals in life. This enables one to spend money wisely and for a purpose. One must first make avenues for saving and then spend money. One must resist the urge to splurge. One must avoid getting into credit and loans.
Mutual funds are a good investment option. Alternatively, one could consider buying shares of an ETF. Unlike a mutual fund that may impose a minimum initial investment, ETFs trade like stocks. These have a specific share price and can be purchased through any broker.
The author works with Common Accounting Business Services, a company that provides dedicated services in the area of tax planning in Toronto and can help with Personal tax return.