What does a financially confident business owner look like? They take advantage of every write-off, maintain a solid paper trail and automate their payments and savings. Their taxes, accountant and lawyer? Covered. Their will and insurance policies? Up to date. They sleep well at night, knowing their finances are in order.
Sounds like a dream? Here are six practical steps you can take to build your financial confidence this year.
1. Schedule your instalments
January is the perfect time to set up all your instalments through online banking. Missed instalment payments can lead to interest charges from the government, so staying on top of them is key.
- For dividends: Check your personal tax return for your instalment schedule.
- For wages: Ensure monthly payroll remittances are scheduled.
- For GST or corporate taxes: If you owed more than $3,000 last year, you likely have quarterly (or monthly) instalments. Check your notice of assessment for details.
2. Maximize write-offs and be audit-ready
Confident business owners know their expenses inside out and are always prepared for an audit. Start by keeping a tight paper trail: pay for all business expenses with a business card and keep receipts organized — digitally or physically. Apps like ReceiptBank, Hubdoc or Scanbot can help.
Pay personal expenses separately, using personal cards. Track business kilometres with apps like MileIQ to claim the full $0.72/km without disputes. And whenever possible, make your travel business-related to maximize deductions.
Need a refresher on what you can write off? Check out our guide to small business write-offs.
3. Automate monthly investing
As Wealthsimple says, "Get rich slow." Start investing a small portion of every cheque. Platforms like Wealthsimple make it easy: fill out their investor profile questionnaire, and they’ll recommend a mix of investments tailored to you. Then, they’ll automatically invest your money on payday.
Set up a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). Remember, the RRSP contribution deadline is March 1. The sooner you start, the better — time is your biggest ally.
4. Automate rainy day savings
A financial cushion can save you from stress when life throws curveballs. Tangerine offers free savings accounts, allowing you to set up automatic transfers.
Pro tip: Create separate savings accounts for specific goals like a new guitar, vacation or home renovation. Automate small transfers each payday — you’ll be surprised how quickly it adds up.
5. Save for taxes regularly
Taxes are a reality for every business owner, but late payments don’t have to be. Work with your accountant to determine what percentage of your income to set aside for taxes. Saving regularly ensures you’re prepared for tax season without scrambling. Not sure where to start? We’re happy to help.
6. Automate credit card payments
Paying interest on credit cards is like throwing money away. Avoid it by asking your banker to schedule automatic payments for your credit card balance. This way, your bill is paid before interest begins to accrue — saving you up to 20% and giving you peace of mind.
Ask your banker to schedule your credit card balance to be automatically paid immediately before interest begins to accumulate. Avoid the 20% and give yourself peace of mind.
You don’t have to tackle all six steps at once. Start with the ones that resonate most with you. Some of these changes are free and can improve your cash flow immediately. Others might feel aspirational but could fit into your 3-to-5-year plan.
At the end of the day, financial confidence isn’t about perfection; it’s about progress. Every step you take brings you closer to a stable, secure future — and a good night’s sleep.
Let’s talk
Our team of Chartered Professional Accountants is here to help you achieve financial confidence. Whether it’s scheduling instalments, maximizing write-offs or building a savings plan, we’re just a call away. Contact us to book an appointment and let us support you in becoming financially fit.
Read more about Small Business Basics topics that may be helpful to you and your small business.
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