2 Ways to Deduct Your Taxes if You Are A Restaurant Owner in Mississauga
October 11, 2021 | Written by: Sohail Afzal
It’s the time of the year for paying taxes again. We understand that it could be a lot of hassle to prepare and file the taxes yourself if you are a restaurant owner in Mississauga. However, let us tell you that you might save lots of money by knowing about the way by which you can deduct the taxes. And, you can do that by figuring out the deductions to decrease business income. Although, it is not too difficult to know about the deductions and pay the taxes. But, if you contact the accounting firm, they would help you guide you through everything about how you can save on taxes if you are a restaurant owner.
In this article, we will discuss some of the ways by which you can save on your taxes. But, It’s always good to know and familiarize yourself with taxes, as every individual has to pay taxes in Canada. If you are up to date about how you can file taxes as a restaurant owner, you’d be able to do it by yourself and even if you don’t want to get into the hassle of preparing and filing the taxes. You can outsource it to an accounting firm and have them handle it for you, and you can have a check on them and see if everything is done properly and on time.
There are many expenses which the restaurants would consider deducting if they are ordinary and necessary for the business situation.
Let’s take a look at some of the deductible business expenses.
As a restaurant owner, advertisements are necessary, and you may have done a lot of advertisements to run the business. You are allowed to deduct the advertising expenses. It includes various mediums used for advertisement, like social media. And also, the promotional events for your restaurant.
The driving expenses can also be one of the expenses which you can deduct. It includes your expenses and your employees.
For instance, it could be a trip to buy some food or supplies for the restaurant. And, it can also include delivery to customers.
Types of taxes for Restaurants
Although, you can contact the accounting firm to handle all things related to taxes, including preparing and filing the taxes. But, it’s always good to know about these taxes that you’d be paying to the CRA. The restaurants in Canada would pay taxes which include:
- Beverage (nonalcoholic)
- Beer and wine (alcoholic)
- HST and GST
- Payroll and employee benefits
- Tip income
There must be a little confusion regarding the tipping taxes. But, let us tell you that if you are the restaurant owner, you can either accept or reject the tips. However, it has become a custom in Canada, and the customer usually pays the tips, and you need to pay taxes on it.
There are many ways to deduct your taxes if you are a restaurant owner in Mississauga. Some of them have been listed above. Apart from the taxes deducted, we have also discussed the types of taxes so that you are well aware of them if you are running a restaurant business in Mississauga.
Contact us now to get to know more about it.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.