PROFESSIONAL INSIGHT: WHY INCOME TAX RETURNS & FINANCIAL STATEMENTS ARE IMPORTANT DOCUMENTS FOR SMALL BUSINESS OWNERS WHEN APPLYING FOR MORTGAGE OR BUSINESS LOANS IN CANADA?
Filing Income Tax Returns (Corporate or Personal) are more than just paying tax to the taxman. In Canada, small business owners are not only obligated to file annual income tax returns to the Canada Revenue Agency (CRA), they also need to ensure their returns are presentable to their bankers if they want to obtain a mortgage / business loan towards a major purchase, either commercially & personally.
Lack of understanding & overlooking the bank’s requirements will likely disqualify the applicants from getting a loan.
The banker will also likely request the applicants to provide them a set of Financial Statements that are prepared professionally by their accountants (i.e. ) to verify their business income.
Taking action to correct or modify the tax returns & financial reports after banker’s rejection is not effective. It doesn’t give the applicants enough time to put a solution in place. If the changes are unreasonable, we can also expect an auditor to pay the taxpayers a visit or just get more reasons to disqualify the loan application.
If you want to learn more about how our accounting & tax return preparation services can fulfill your bank loan requirements, contact us now to obtain a free, no-obligation consultation.
We’re dedicated to providing you an unique personalized accounting solution that is Bank & Taxman-Ready, with tailored tax & financial advice. We will show you how proper planning can help you to get the loan you need.
Let us be your accountant to support your personal & business growth. Our services are simply designed to fit your unique business needs.
Bonus: Come and ask us about how to establish a clean, accurate & timely set of books that is Taxman & Bank-Ready; so that, you can sleep well & enjoy your life while growing your business.This article also appeared on Neighbours of Dundarave Magazine (November 2022). an exclusive magazine for the residents of Dundarave, Ambleside, Altamont, Westmount, West Bay and Bayridge.
~ Alice Cretelli, CPA ~