The reason why it is very important for entrepreneurs to come up with a plan on how to manage their sales-tax along with their Edmonton bookkeeping company is so that they can avoid making costly mistakes. Not only can these mistakes cost them penalties, but those penalties can become a financial burden on an entrepreneur that may cause them to run out of money in their business. This is the second most common reason why businesses fail, is that they run out of money. By avoiding penalties by filing their sales-tax accurately, entrepreneurs can help their businesses succeed and thrive.
The first thing that business owners need to be aware of what they are starting their business is that when there GST filing is due differs from when their corporate year-end filing is due. Their corporate year-end is due six months after their corporate year-end, while the GST is due three months earlier. The reason why is because the Canada revenue agency wants to get there GST remitted as quickly as possible since this is money is owners are holding in trust for the government.
The problem that arises when the GST filing comes before the year-end, is that business owners can often make mistakes on their GST return. If that is the case, the Canada revenue agency may assess them penalties for having an inaccurate filing. These penalties can be very difficult for an entrepreneur to pay, and even if they have updated financial statements, the only way to guarantee that it is accurate is to wait until their corporate year-end is done.
By waiting until their corporate year-end is done in order to file their GST, Edmonton bookkeeping says that means that entrepreneurs are going to be filing their GST late. While entrepreneurs will get assessed interest on all of the taxes that they owe at the end of the year from the moment they should have filed until the day that they do. It is important to note that the interest charges will be a lesser charge than the penalties usually are.
However, a business owner can even minimize how much they will have to pay interest if they know ahead of time that this is the strategy that they are going to use according to Edmonton bookkeeping. By paying their sales-tax intermittently and in installments, can ensure that an entrepreneur owes the minimal amount of taxes at the end of the year when they file late. This minimizes the amount of interest that they are going to be assessed. therefore, an entrepreneur can decide to pay late and then minimize the interest that they will pay.
By understanding these complexities about sales-tax can help entrepreneurs come up with a plan. That plan can help them file accurately, and pay the least amount of money, is that an entrepreneur has as much money available to them to grow their business as possible. Also, by having this plan in place can help ensure an entrepreneur can put their energy and attention on the strategic priorities of their business.
Edmonton Bookkeeping | Common Questions About Submitting GST
The reason why entrepreneurs often end up with penalties when they submit their sales-tax filing says Edmonton bookkeeping is because they do not understand all of the complexities associated with it. Not only do they need to keep organized the filing deadline, but also how to minimize penalties associated with it. This is even more difficult when an entrepreneur has decided that they are going to manage their finances themselves. This is a common strategy for entrepreneurs to minimize how much they have to pay in their business for services. However, this can often backfire and business owners they realize how complicated this is, and how much time it is taking them. Often, a business owner is farther ahead to pay for Edmonton bookkeeping services, and spend their time and energy on growing their business instead.
This is illustrated very clearly when an entrepreneur believes that they are going to be able to use their accounting software to help them accomplish all of the financial obligations of the business. Edmonton bookkeeping says that entrepreneurs may not understand that accounting software is flaunted when it comes to managing sales-tax, because of how complex it is. It is so complex that even computer programs have a hard time managing answers. Therefore, entrepreneurs need to be aware of how their particular software is deficient in managing sales-tax, and finding out from in Edmonton bookkeeping company what they need to do to overcome those deficiencies.
Another thing that entrepreneurs will need to keep in mind if they are going to manage their finances themselves, that if they are not keeping their financial statements updated often and correctly, they may cause themselves problems when filing their sales-tax the end of the year. If their financial statements are inaccurate, how can they get accurate information on how much sales-tax they need to remit and file?
An entrepreneur might decide that it is far easier to hire and Edmonton bookkeeping company like always bookkeeping to help them manage their finances as well as manage their sales-tax. It is even possible for entrepreneurs to get a bookkeeper who can file GST with CRA as well as represent the business owner for tax purposes up with the CRA. Bookkeepers have a proper identification number, and entrepreneurs just need to sign a consent form and that is one less thing that entrepreneur needs to worry about inking about during their day.
By understanding how complex managing sales-tax is, can help an entrepreneur make the decision to hire the best Edmonton bookkeeping company to manage their finances for them. Even though an entrepreneur tries to learn their own bookkeeping in order to save money, the best money that they might be able to save is spending their own time on growing their business and achieving all of the strategic priorities needed to help their business be successful, rather than struggling to understand something very difficult.