Who does this apply to?
This applies to the newly incorporated and self-employed business owners who want to minimize their record keeping headaches, learn what's involved in managing your CRA business account and authorize a representative.
What do I do first?
Now that you have a business number, you’ll want to be able login to your CRA My Business Account. This part will take a few days as the CRA will mail you a code to be able to log in. Full directions on how to set this up can be found here.
Why am I doing this?
Being able to administer your CRA account is critical. From it, you can pay your tax owing, and receive CRA Mail. You also have access to prior filings and tax balances. Most importantly is you will be able to authorize a representative (this is where I come in), who can handle most of the issues with your tax account.
This feels like a lot of work. Do I have to?
Everything is optional. For businesses though, the CRA is moving towards a self-serve model, and you can no longer sign an authorization which will grant your accountants immediate access to your business number. Even when you do, you still have to log into your CRA My Business Account and complete the authorization.
Yes, we’re still mad about it too.
But without access to your account, you will miss critical notifications from the CRA, and possibly end up with a reassessment because you didn’t respond to their correspondence. And that’s frustrating for everybody.
Ok. You’re now an authorized representative, what does that mean?
It means I can make sure payments are allocated correctly, and I can keep track of any correspondence and filings. I can open and close new business numbers, file certain returns (e.g. HST/Carbon Tax), respond to reviews, file amendments and objections, and in the worst case, represent you at audit.
And Christmas came early, so I can once again update the addresses associated with the company. I can also add my email to the notification addresses, so you don’t have to check when there’s new mail. Since you’ve authorized my business number, I can do this online (efficient!) or on the phone (less efficient) for all tax years.
I can’t change your banking information and I can’t pay the tax for you.
In short, I can deal with the CRA for most issues, allowing you to focus on growing your business.
What do I have to do now?
Set up your bank accounts for each program so that you can schedule payments for filings and installments.
Standard Disclaimer: This is intended to be a guide and not binding tax advice. If you need that, call me.