The extremely important that entrepreneurs learn how to plan their fiscal year says Edmonton bookkeeping. Planning can help ensure that entrepreneurs are managing their finances correctly, and with the complexities associated with filing sales tax, it will help ensure that an entrepreneurís doing it accurately. If they make critical mistakes throughout the year, they will not realize that it is wrong until CRA sends them an assessment for penalties for doing it incorrectly.
One of the first things that business owners need to plan for is when they are going to file their sales tax. Although the date it does is three months after their corporate year-end, that is three months before their corporate year-end is due. If they end up filing their GST on the deadline, they might discover three months later that they have filed it with mistakes. These mistakes can cause problems, having Canada revenue agency handing out penalties due to the errors.
On the other hand, a business owner can decide to file their GST at the same time as their corporate year-end says Edmonton bookkeeping. And although that would mean they are filing at three months late, that also would ensure that they are not being assessed with penalties. A business owner should be aware that if they file late, they start incurring interest charges from the date their GST filing is due. Which means, they would have three months of interest on the entire amount that they owe if they decide to file at the same time as their corporate year-end.
One thing that can help business owners make a decision on which date they want to file by says Edmonton bookkeeping, is that interest charges are often lower than penalties. And if a business owner is paying installments of their sales tax throughout the year, they can bring down the total amount of money that they owe the government significantly, which will allow them to incur a small number of interest charges.
Making the decision on filing late, and then making installments through the year can help business owners avoid filing incorrect sales tax information and also pay the minimal amount of interest charges. A business owner just has to ensure that they are aware of this from the start of their fiscal year so that they can make sure they are making their installation payments regularly. By doing this, a business owner can eliminate the risk of filing incorrectly and then having to pay interest that they cannot afford.
By being aware of the complexities associated with filing GST can help entrepreneurs create a plan. That way, an entrepreneur can worry less about managing their finances, knowing that it has been looked after so that they can focus on more important things. However, if an entrepreneur has any questions or concerns, they can always reach out to the contact and Edmonton bookkeeping company like always bookkeeping to provide advice or to even help an entrepreneur implement this plan if they need it. That way, a business owner can focus on growing their business.
Edmonton Bookkeeping | Helping Businesses File GST Correctly
It is very important for entrepreneurs to be aware that if they are going to be managing the books themselves, there is a lot of information they need to learn says Edmonton bookkeeping. Not only do they need to learn how to use their accounting software, and how to enter all of the information and get accurate financial statements. Also, entrepreneurs will also need to understand the complex nature of managing and filing sales tax in order to be able to do it correctly.
If they file their sales tax incorrectly or remit the wrong amount, they could face significant penalties that would be very difficult for businesses to pay. Since the second most common reason why businesses fail is that they ran out of money, by avoiding significant penalties from filing incorrectly can help business owners stay cash flow positive.
Something else for business owners to keep in mind, especially if they are managing the finances themselves is that accounting software programs are flawed when it comes to managing sales tax. They all have a built-in capability that can help, but because it is such a complex tax, all accounting software programs have deficiencies. Not only does an entrepreneur need to be aware of how to file and manage their sales tax, but how their accounting software needs to be compensated for. They can always contact their Edmonton bookkeeping company to offer suggestions and advice on how to overcome this problem.
Business owners should be aware that if they make mistakes on running their financial statements, not only will they end up with financial statements that will not help them make informed decisions in their business, but it can also make managing their sales tax difficult as well says Edmonton bookkeeping. The reason for that is because if their books are not accurate, they will not be able to calculate their sales tax accurately. They might end up remitting the wrong amount, or they could end up filing incorrectly. Either way will result in an entrepreneur incurring additional charges in penalties, which could be very difficult for them to pay.
If an entrepreneur has tried to manage this themselves, but ultimately decided that their time is better spent on growing their business, they can always ask and Edmonton bookkeeping company to take over. Not only will they be able to ensure that they are getting up-to-date and accurate financial statements that can help ensure the accuracy of their sales tax. But in Edmonton bookkeeping company will also be able to help an entrepreneur file their GST with CRA. All an entrepreneur has to do is give their bookkeepers a consent form to give them the authority.
By allowing the experts to help them manage their finances and sales tax, can help an entrepreneur focus on what is important to them. Working on all of the strategic priorities of their business including sales and marketing can help ensure that an entrepreneur is spending their time growing their business, instead of activities that are not going to help them make more money.