“Why do I have to pay so much in taxes?” — This is a question I hear all the time.

In truth, filing taxes, without the right expertise, can be tedious, confusing and—at—times, very frustrating. But here’s the real kicker: Many individuals and businesses unknowingly overpay, parting with cash that could have served better purposes. But in order to build an effective personalised tax strategy, understanding the tax system is key—or at the very least, having a tax expert in your corner.

The good news? There are completely legal ways to reduce your tax burden through Tax Benefits—a mix of tax write-offs and tax credits. These can make a huge difference, yet so many people overlook them.

Some common tax write-offs include start-up costs, capital allowances, interest and bank charges, business-related home expenses, bad debts, and insurance. On the other hand, tax credits often apply to expenses related to Scientific Research and Experimental Development (SR&ED), apprenticeship programs, green energy initiatives, agriculture, and film and video production.

With the right knowledge (or the right expert), you can stop overpaying and start focusing on building real wealth.

The Biggest Hurdle for Black-Owned Businesses in Canada

According to Statistics Canada, 61% of Black-owned businesses in Canada are owned by immigrants. As a result, one of the most significant challenges that these owners confront is cultural differences, particularly when it comes to filing tax. The tax structure in Canada may differ greatly from that of an immigrant’s home country.

This is why it is important to be proactive in learning how the tax system operates in this country. As a business owner, you must obtain suitable information, use government resources, and be willing to act accordingly. As an immigrant, I continue to pursue active research.

So, don’t be afraid to ask questions, maximise government support, and seek advice from professionals.

The Biggest Tax Mistakes Black Business Owners Make

Two of the biggest mistakes Black business owners make when it comes to tax planning are being cheap when hiring experts and improper record preparations.

Firstly, tax planning is a technical activity and usually requires more diligence than meets the eye. Hiring cheap (or opting for the DIY approach) undermines the technical skill set that gives you the best return on your taxes. Your business is highly impactful and deserves expert help and support.

The second oversight that I have observed is that many businesses wait until tax time for the “magic” to save on taxes paid—which is often too late. Tax planning can be more intentional. This is why I suggest all-year-round tax planning and updates as a way to stay ahead of the curve. This can be done through proper bookkeeping, having effective financial systems, and planning for all payroll taxes.

Remember that your taxes are calculated based on the information you give your tax preparer, and when approaching tax planning, more emphasis should be on the word “planning.”

The Biggest Recommendations To Maximise Profits

Taxes are one of the largest business expenses, and tax strategies are key to building wealth—both in your business and personally. As a result, my biggest recommendations are:

1. Invest in financial and tax education to enhance your understanding of your business. The more you know, the more you can plan and take timely actions to propel your business. So build that knowledge by taking courses, attending training sessions, and listening to reputable podcasts.

2. Be clear on your end goal. What is your exit plan? Taxes will depend on your business structure, transactions, the type of workers you have, etc. When you define your long-term goal, you can choose the best business type—e.g., corporation or sole proprietorship—to align with your vision.

3. Most importantly, work with a tax expert or CPA who stays informed on changing tax laws and regulations. As your business evolves, so will your tax strategy, along with applicable tax laws, deductions, and credits. The key is the correct application of tax knowledge, which is why I always emphasize engaging a tax expert or CPA.

The Biggest Solution to Tax Liability—The Cash Lab

The Cash Lab specializes in using comprehensive insightful strategies to enhance and manage cash flow in businesses. We deliver customized solutions and creative change. 

We train, speak and support in various areas of your business such as bookkeeping, processes, change management, employee relations, leadership, finances, accounting and more.

We have done business bootcamps, financial training at varying levels, and we continue to produce articles that enhance financial literacy.

The Biggest Career Advice for Aspiring Black Accountants

Be yourself, be willing to learn, be confident that you don’t know all things and that is ok, you can learn!! There are many career paths and options in this accounting industry – explore and don’t be afraid, have fun!! 

Remember the need to bring value to this industry- be clear on certain key values- integrity, honesty, hard work,  be ethical , make yourself and generations to come proud and set a worthy example for them to follow or exceed!!

Become a disruptor – never accept the phrase “it’s always been done this way.”