It is very important for entrepreneurs to come up with a plan on how they are going to manage their sales tax says Edmonton bookkeeping. An efficient system that will ensure that they are doing all of the things that they need to at the right time it takes time and effort to create. As Zig Ziglar has said, when you stop planning and preparing, you stop winningî. Coming up with an efficient plan is an important way to ensure that entrepreneurs are minimizing their interest payments and avoiding penalties.
The reason why filing sales tax requires strategy is that GST returns are due three months before an entrepreneur ís corporate year-end. Since an entrepreneur is not going to get all of the accurate information to populate the sales tax return, they run the risk of having errors on the return if they file it by the due date. These errors could trigger penalties for the business owner to pay, which could be difficult for the entrepreneur to pay.
A business owner can wait to file their sales tax until they have their corporate year-end complete so that they file with the most accurate information. Edmonton bookkeeping says they will definitely avoid incurring a penalty this way but will be expected to pay interest on the entire amount outstanding from the date the return was due, until the date they paid it.
Therefore, business owners can make the decision of what they would rather do, file on time but face potential penalties if there are errors, or file late, and incur interest. Edmonton bookkeeping recommends that entrepreneurs file late because the interest charges are generally less burdensome than the penalties. Also, entrepreneurs with some preplanning can minimize how much interest they have to pay as well.
If a business owner is aware that they are going to file their sales tax return late, they can make tax payments in installments throughout the year, without actually filing their return early. By doing this, entrepreneurs can minimize the amount of money that they end up hoping that Canada revenue agency by the end of their fiscal year, minimizing the amount of interest charges the have to pay when they file late. This is only possible to do when an entrepreneur is aware of the difference in filing dates and comes up with a strategy on how to deal with it.
It is critical that an entrepreneur, first of all, gets expert opinions from professionals such as from Edmonton bookkeeping company always bookkeeping. By finding out all of the facts about their filing, entrepreneurs can make the decision on how they are going to pay their sales tax, and then what strategies they have to implement throughout the year to minimize their risks. By coming up with a plan ahead of time can help entrepreneurs not to worry about their sales tax, and get back to spending the time in their business that is going to allow them to grow.
Edmonton Bookkeeping | Efficient GST Filing Requires Planning
When issue that affects many entrepreneurs, is that they think they are being proactive by filing their GST returns throughout the entire year, and realize after they submit their year-end that they have done it incorrectly says Edmonton bookkeeping. If this is the case, they are often hit with additional penalties that could cause financial hardship to entrepreneurs. Since 29% of all failed entrepreneurs say running out of money is the reason their business failed, having to pay penalties through incorrect sales tax filing can add to that difficulty.
There are many things that entrepreneurs should keep in mind when they are taking care of their sales tax that will help ensure that they are doing it properly. The first thing they need to keep in mind is that most accounting software programs do not have the ability to handle all of the complexities surrounding sales tax. Because of those weaknesses the software, entrepreneurs either have to be aware of which way their software is deficient, and what they have to do to account for that, or they can simply hire and Edmonton bookkeeping company to help them manage their sales tax. Often, even though it is less expensive to manage it themselves, entrepreneurs may find it less expensive in the long run to pay an expert and avoid paying penalties.
Something else for entrepreneurs to keep in mind is that if they are not ensuring that there keeping up-to-date or accurately produced financial statements, that will impact everything to do with their sales taxes Edmonton bookkeeping. From how much they need to remit, to their filing, entrepreneurs are making life difficult for themselves if they are not keeping on top of their financial statement. Again, they can try to take care of it themselves, and if they are unsuccessful, it will result in penalties later on. Or, an entrepreneur can hire and Edmonton bookkeeping company such as always bookkeeping and not worry about whether they are doing it correctly or not. Also, hiring a company to help with that, entrepreneurs end up with more accurate and up-to-date financial statements that can help them make better financial decisions in their business.
If an entrepreneur has decided to hire an Edmonton bookkeeping company, they need to understand that not only can they help do their corporate year-end, up-to-date financial statements and manage their sales tax, but bookkeepers can also file sales tax on behalf of entrepreneurs themselves. They need to get a form from CRA to the bookkeeper, and then sign a consent form. This will give bookkeeping companies the authority to file sales tax on behalf of the business owner, and represent those owners to the CRA on their behalf.
If entrepreneurs understand that while it is more cost-effective to do many things in their business themselves, by getting experts to help them with their bookkeeping, they can avoid paying additional charges and penalties and interest that can end up being more expensive than the cost of the bookkeeper for the entire year by doing this, business owners can ensure that they can focus their own time on areas that is most beneficial, in the tasks that are going to help them grow their business.