The One Tip Your Business Needs To Prepare For Tax Season


You may not have thought about tax season yet but it’s soon approaching and we’d like to help! Payfirma’s mandate is to help people build a successful business, which is why we wanted to share a quick tax tip to help you get the most out of your credit card processing. Here’s the tip:

Credit Card Processing Fees are Tax Deductible!

As a Canadian business, your credit card processing fees can be treated as a business expense on your tax return. Business expenses are a known deductible but some merchants may not know that their credit card processing fees qualify as a business expense. Depending on how many credit card transactions you make in a year, your processing fees can be significant. The silver lining is that those same fees can give you a decent tax write-off when you prepare your tax return.

Your credit card processing fees can help you save a bit of coin this year but so can other business deductions. If you’re a new business, you can even claim startup capital used on getting your new business up and running, as well as office equipment, software, and rent on your business property.

Here’s a link to the CRA website with a list of business expenses that can be deducted: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html

All tax preparation should be looked over by a certified tax/accounting professional. When you meet with them, be sure to ask if you qualify for any other business deductions.