There are many questions that business owners often have when they start their business about how to collect, pay and file their sales tax says Edmonton bookkeeping. The reason why there is many questions is that sales tax is a complicated issue, and even companies with lots of experience and knowledge can struggle in this area. Therefore, many business owners have lots of questions to ensure they are handling this issue properly.
One of the first questions that entrepreneurs often have is when do they need to file GST? Business owners who own proprietorships have until June 15 every year to file, but if an entrepreneur owns a corporation, they have until three months after their corporate year-end in order to file.
The second question that entrepreneurs have is how often should they file their GST? They may file as often as bi-monthly, quarterly or annually, as long as they are making under $1.5 million. Business owners that are making under that threshold have the option of filing as often as they want, or yearly if they choose. Edmonton bookkeeping says that business owners need to be aware that if they are filing nearly, there may be issues that come up by filing three months before they finish their corporate year-end. They have the choice of filing it before their corporate year-end is done, and potentially file it incorrectly and have these. Or, they can file it late so that they can ensure its accurate as per their corporate year-end filing, but then they interest in.
The third question that business owners will have when it comes to filing their sales tax is: one of the advantages of filing annually? The best advantage of this is that there is no financial or administrative burden associated with filing quarterly. Whether they are managing it themselves, or hiring and Edmonton bookkeeping company to help them with it, if they are filing quarterly, it is additional work and additional cost. Also, the second advantage that comes with filing annually, is if they file once a year, in conjunction with their corporate year-end, they can ensure that they are sales tax filing is accurate.
The fourth question that business owners have is there can they use accounting software to help with their GST filing? While this is definitely the case, most accounting software does not have the ability to handle all of the complexities with the sales tax. They need to be aware of all the ways that their software may be deficient in handling sales tax. However, they can always contact and Edmonton bookkeeping company in order to help manage their sales tax on their behalf, and then I do not have to wonder about how their software will not be accurate.
When business owners are aware of all of the complex issues associated with managing sales tax, they will be able to come up with a plan at the beginning of their year, in order to manage it properly, knowing that they can always get help from their Edmonton bookkeeping company if they have any troubles. Doing this, entrepreneurs can maximize their chances of filing and remitting sales tax properly, and allowing their business to benefit as a result.
Edmonton Bookkeeping | Common Questions About Sales Tax
Coming up with an effective plan about how they are going to collect, remit and file their sales tax is important to ensure their doing it accurately says Edmonton bookkeeping. Business owners are not able to count on their accounting software to be accurate, because the issue is so complex. Therefore, would entrepreneurs are learning how to handle it themselves, they often have many questions that will help them ensure their doing it accurately.
One of the first questions that entrepreneurs often have, is can they make payment installments without filing? Business owners understand that it is a financial and administrative burden to file their GST regularly. However, they may want to pay GST on a regular basis for a number of reasons. In order to ensure that an entrepreneur is not mismanaging the money that they are collecting for sales tax, and also to ensure that they are paying it throughout the year so that they can minimize interest charges when they will file it at year-end. Edmonton bookkeeping says that this is absolutely true, they can make payments as often as they want, and only file annually
The next question that entrepreneurs often have is if they have updated financial statements, let help with their GST filing? This is extremely important, if an entrepreneur is not ensuring that their financial statements are being kept up-to-date regularly, that can impact how accurate there GST filing is. If their books are not kept up-to-date through the year, the instalments that they are paying throughout the year might be incorrect, leading to problems when they get to the end of the year. Therefore, business owners may want to hire and ten bookkeeping company such as always bookkeeping to help ensure that they are keeping their financial statements up-to-date monthly so that there GST has a higher chance of accuracy.
The next question that business owners have is if they are getting their Edmonton bookkeeping company to manage their financial statements for the year, can they also file GST to Canada revenue agency on their behalf as well? This is absolutely the case, bookkeepers can file sales tax on behalf of business owners as long as they have received a signed consent form. This can help business owners minimize how much work they have to do managing sales tax themselves, and ensure that it is being filed as accurately as possible as well.
There so many various things that business owners need to keep in mind when it comes to managing and filing their sales tax with the government. There so many things that they need to know about, and to do throughout the year to ensure its as accurate as possible. By being aware of these, coming up with a plan ahead of time can help ensure that an entrepreneur is managing there GST is efficiently and accurately as possible so that they can avoid issues at the end of the year.