Having to pay taxes as a business owner is a significant part of what entrepreneurs have to do says Edmonton bookkeeping. Therefore, when it comes to all of the various taxes that an entrepreneur must collect, as well as remit and file, having a plan can help ensure they are doing it correctly. Without a plan in place ahead of time, the business owners might find that at the end of the year they have collected, remitted or filed it incorrectly, and as a result, they are hit with penalties and interest charges. This is avoidable the great plan, as well as ensuring business owners can count on experts to help them out.
The first thing that entrepreneurs should understand, is when there sales tax is due to be filed. If they have a corporation, there GST is due three months after their year-end, which is actually three months before their corporate year-end filing is due. The reason why this is something that business owners need to take note of is that if they file at three months before they finish their corporate year-end, they may be filing it with mistakes. Canada revenue agency once the filing to be done so soon because they consider the money that an entrepreneur has collected as trust fund money, that needs to be accounted for as soon as possible.
Because the GST filing is due ahead of actually figuring out if it is accurate or not, business owners need to be aware of this, so that they can ensure that they are managing their taxes properly throughout the year, to avoid having there GST filing be incorrect. Therefore, using an Edmonton bookkeeping company to help keep updated financial statements can help a business owner have up-to-date books so that there GST filing has more chances of being correct.
Many entrepreneurs who wish to avoid having an incorrect annual GST return filed, they may think that filing their GST on a quarterly basis can help eliminate that problem. Unfortunately says Edmonton bookkeeping this is not the case. Quarterly filing is not as accurate as of the year-end filing, and there is also the administrative and financial burden associated with filing quarterly. This can cost a significant amount of that entrepreneurs time, and money especially if they’re losing and Edmonton bookkeeping companies to file or even manage their books. It may not be more than entrepreneurs while to file quarterly, in order to avoid mistakes. Especially when filing quarterly is not proven to help them avoid mistakes.
Important that entrepreneurs are aware of these issues when it comes to filing sales tax so that they can come up with a plan ahead of time on what they are going to do to minimize errors, and file as accurately as possible. By doing this, entrepreneurs can ensure that they are not putting financial stress on their business by incurring penalties that were actually completely avoidable from the start. Successful business owners are going to have a plan.
Edmonton Bookkeeping | Filing Sales Tax Accurately
The reason why business owners need to be aware of file their sales tax says Edmonton bookkeeping, is so that they can do it correctly. Even though every business owner must collect and remit sales tax, it is actually a very complex issue that can be difficult to manage if not planned in advance. Therefore, an entrepreneur must be aware of how to collect, remit and file their sales tax to Canada revenue agency effectively properly to avoid problems.
One of the biggest mistakes that entrepreneurs make, is thinking they do not need to make a plan on how they are going to pay and file their sales tax because they know their accounting software quite well. While most accounting software is like zero, Sage and QuickBooks and QuickBooks online all have the ability to manage sales tax directly within their software. However, none of the accounting software can handle all of the complexities associated with sales tax. The result is if people are depending on the software alone to manage sales tax properly, there will be errors. Therefore, regardless of what accounting software and entrepreneurs using, they also have to be aware of the great features that will help a business owner manage sales tax, and in which way each software is goal and able to manage it well. If an entrepreneur is simply relying on their software alone, they are going to end up with an accurate year-end filing.
The next thing that entrepreneurs should know, is as long as an entrepreneur under $1.5 million a year, they can file their GST annually. Once they get over $1.5 million, they will have to file monthly or quarterly. Filing more often can be a financial and administrative burden, therefore business is that is not making that threshold yet should plan to file annually, and be aware of what they need to know in order to file annually correctly.
When entrepreneurs are filing annually, Edmonton bookkeeping says that they should be able to keep in mind that they can actually make payments of their sales tax to can agency as often as they want. Allowing them to ensure that there remitting all of the money that they are collecting, and minimizing the amount of interest that they have to pay at the end of the year when they submit their annual sales tax filing. Since the amount that they will owe interest on is the entire amount owed for the three months that they are late, the less a business owner owes, the blessed interest that they will have to pay.
Managing sales tax can be made simpler, by knowing all of the complexities associated with it, as well as ensuring they are using experts like Edmonton bookkeeping company always bookkeeping. Their professionals are going to be able to help business owners ensure that they are filing as accurately as possible while minimizing any additional money that they are going to have to owe Canada revenue agency.