Itís very important that business owners learn how to manage their sales tax efficiently says Edmonton bookkeeping. The reason why is because if entrepreneurs end up making mistakes, they could potentially cost themselves more money in interest and penalties. In order to be efficient with filing sales tax, entrepreneurs need to understand when they need to file and how often they need to file their sales tax.
The first thing that business owners need to know is when it is the right time to file their sales tax. This is dependent on what entity they own. If they own a proprietorship, they have until a June 15 deadline to file their GST. If they own a corporation, the business owner has until three months after their year end, or quarterly. The biggest thing that entrepreneurs need to understand if they are filing their GST once a year, that the GST will be due three months before their year-end is due.
Edmonton bookkeeping says that it might be an issue for some business owners to have to file their sales tax before completing their year end. The issues that might arise from this, is if an entrepreneur files there GST, but then realizes three months later when they complete their corporate year end, that it was done incorrectly. In order to avoid paying penalties associated with this, many business owners choose to pay their GST in installments, so that they do not owe any tax by the time there GST filing is due. Then, they will file it at the same time that they file their corporate year-end. They may have interest charges on any remaining outstanding balances, but that is preferable over having penalties.
Many entrepreneurs wonder how often they are able to file their GST. Edmonton bookkeeping says they have options of paying bimonthly, quarterly or annually, as long as the entrepreneur makes under $1.5 million. Bein paying g intermittently is what many business owners prefer to do so that they do not have to hold onto all of their sales tax for an entire year. It is easier to manage and will help an entrepreneur avoid paying interest from filing late.
There are great advantages of only filing once a year as well, business owners will not have to deal with the administrative burden associated with filing quarterly. They can make the choice to pay GST in quarterly installments, but then only file once a year. The benefits of filing their GST at the same time as their corporate year end, is that it eliminates the possibility of an entrepreneur making a mistake on their GST filing. While it might end up with an entrepreneur paying interest, that interest is lessened if an entrepreneur has been making payments in installments, as well interest is preferable to pay over penalties.
By understanding how to manage their sales tax can help entrepreneurs on time, and avoid making mistakes at their year-end that could cost them penalties. If entrepreneurs have any questions about how to efficiently manage their GST payments and filings, they can contact Edmonton bookkeeping companies always bookkeeping to help sort through their tax questions.
Edmonton Bookkeeping | Effective Sales Tax Strategies
Many people have questions about their sales tax payments and filing says Edmonton bookkeeping. Not only that, but even entrepreneurs who are familiar with their business finances struggle with understanding it because of the complexities of it. Even accounting software that can help entrepreneurs with a lot of their taxes do not always have the capability to handle the complexities associated with sales tax. Because of that, entrepreneurs have a lot of problems and a lot of questions when it comes to managing their sales tax.
One of the first questions that many entrepreneurs often have for Edmonton bookkeeping is can they make their tax payments in installments without filing first? Business owners can absolutely make instalments without having to file their sales tax. In fact, this is a great strategy for entrepreneurs who want to submit payments on a regular basis, but are going to file their GST along with their corporate year end. Since sales tax filing is due before a business owner corporate year-end, by paying in installments, is owners are minimizing the interest that they will have to pay by filing late.
One thing that can significantly help entrepreneurs is by ensuring that they have updated financial statements because that will allow them to have more accurate sales tax information. If they are going to file their sales tax on a quarterly basis, having the most up-to-date and current financial statements in their business will minimize the potential of having errors on their GST when they complete their corporate filing three months later. If business owners are struggling with keeping their financial statements up-to-date, they will be able to get their Edmonton bookkeeping company to help them out with that, not only so that they have updated statements to help them make financial decisions in their business, so that they can minimize errors on their GST filing.
If business owners would like some help in their sales tax filing, they should also be aware that Edmonton bookkeeping companies can file sales tax on half of the business owners. When people set up their GST number for the first time, the Canada revenue agency will send them a form that they can then give to their bookkeepers. Their bookkeepers will require them to sign a consent form giving them the authority to file with the government on their path. They will then have the lab identification number that will enable them to contact Canada revenue agency on their behalf and represent the business owners for tax purposes in addition to filing sales tax.
There are many complexities dealing with the sales tax that entrepreneurs can have trouble understanding unless they employ the help of a great Edmonton bookkeeping company like always bookkeeping. By working with professionals, entrepreneurs can ensure that they are taking the right amount of sales tax from their customers, and then remitting and filing it appropriately. By working with professionals, entrepreneurs can avoid making costly errors, reducing the administrative burden and minimizing what interest they have to pay when they do file.