Entrepreneurs may think that they are handling their sales tax efficiently and effectively says Edmonton bookkeeping, they are collecting it regularly, remitting it throughout the year. However, if entrepreneurs are not managing it properly, they can get the end of the year and realize that it has been done incorrectly. At this point it is too late to fix, and not only do business owners have to pay more tax than they thought, they also have to pay penalties from filing sales tax incorrectly in the first place. There are many things that business owners need to understand in order to ensure that there managing there GST properly, and filing it correctly.
While large companies have to submit their sales tax filing on a quarterly basis, as long as a business owner is making less than $1.5 million per year, they only have to file their sales tax return once per year. It is due three months after their fiscal year-end, which is three months before their corporate return is due. This is important to note says Edmonton bookkeeping, because there can be problems that arise from the two separate filing dates if an entrepreneur is not prepared.
One of the biggest problems that entrepreneurs will face from the separate filing dates, is that a business owner will not have all of the most accurate information for their sales tax return until they complete their corporate year-end. If they file without having this important information, that can result in incurring penalties that could cost an entrepreneur a significant amount of money.
If an entrepreneur waits until they have their corporate year-end in order to file their sales tax says Edmonton bookkeeping, they will incur interest charges on the amount of taxes that they owe CRA during the period that they are late. If an entrepreneur is making payments in installments, that can significantly minimize the interest that they will be assessed.
Therefore, it is in an entrepreneurís best interest that they are deciding at the beginning of their fiscal year how they plan on filing their sales tax. By knowing how they are going to file, can ensure that there keeping the most up-to-date and accurate financial statements and that they are making payments throughout the year. The coming up with the strategy ahead of time can help business owners ensure they are on top of managing there GST.
Entrepreneurs are having difficulty coming up with a strategy for this, they can always contact their Edmonton bookkeeping company who will be able to help them figure out what is the best strategy for them so that they can avoid finding out that they have made errors at the end of the year. This strategy can help business owners stop worrying about how to manage their finances, and focus on working on all of the tasks they need to do in their business in order to help them scale-up and grow.
Edmonton Bookkeeping | Frequently Asked Questions Regarding Gst
If business owners are not aware of all of the various issues associated with managing there GST says Edmonton bookkeeping, they could create problems for themselves. Especially when an entrepreneur is trying to save money in their business by taking care of their own books. Not only do business owners have to be aware of how to use their accounting software, but they also need to create a plan, so that they can ensure that there avoiding making costly errors in their business.
One of the first things that it is important for entrepreneurs to be aware of when they are taking care of their own bookkeeping is that accounting software is not an error-free solution to managing their sales tax. Because it is such a complex issue, business owners should not depend on their accounting software. By being aware of all the ways their program is deficient can help ensure that an entrepreneur or making concessions and fixing what the program gets wrong.
Another way that entrepreneurs might end up being unable to manage their sales tax themselves is if they are unable to not only update their financial statements on a regular basis, but if they are unable to take the time to fix mistakes, and ensure the accuracy of the information, that will spell trouble when they get to filing their GST return at the end of their year. It might be a lot easier for an entrepreneur to hire and Edmonton bookkeeping company to not only update their financial statements but to keep track of all their sales tax as well.
When entrepreneurs hiring someone to take care of their finances, business owners should also keep in mind that they can even file GST on their behalf as well. Simply by signing a consent form, will give Edmonton bookkeeping company the authority to not only file GST on their behalf, but also represent business owners as well. While it might be very tempting for entrepreneurs to save money by taking care of the books themselves, the interest and the penalty charges that they face from doing it incorrectly might persuade business owners to hire experts to help them out. By paying for companies that know what they are doing to help a business owner out with this, can end up being a lot less expensive than themselves, but having to pay penalties.
When entrepreneurs can understand sales tax, and all of the complex issues that are associated with it, will be able to manage their sales tax efficiently. However, an entrepreneur is often best to spend their time accomplishing all of the strategic priorities of their corporation, especially because nobody else will be able to help them with that. By hiring an Edmonton bookkeeping company to manage their finances and sales tax will allow a business owner the time and energy to focus on the areas that they need to help their business to scale up and grow.