If entrepreneurs are not aware of all of the complexities associated with filing their sales tax return with Canada revenue agency, Edmonton bookkeeping says that entrepreneurs can put themselves at risk of having to pay additional fees in penalties or interest charges for doing it incorrectly. Many entrepreneurs pay so many various taxes including income tax, CPP, EI, that if they think GST will be as straightforward as that, they may be setting themselves up for mistakes. Even entrepreneurs that think that filing their GST returns throughout the year will help them avoid errors are incorrect. When in fact, there are many things that go into an entrepreneur ensuring there filing accurately.
One of the first things that entrepreneurs need to keep in mind in order to ensure that they are filing their GST accurately, is ensuring they know what the filing deadline is. If an entrepreneur owns a corporation, their filing deadline will be different for their GST and to their corporate year-end. In fact, the GST is due to be filed three months before an entrepreneur needs to submit their corporate year-end. The reason why this creates problems says Edmonton bookkeeping, is because an entrepreneur will not know all of the accurate information that will help them file their GST correctly until they complete their corporate year-end.
Therefore, an entrepreneur must make the choice between these two options: filing their GST on time and potentially incorrectly or file their GST late correctly. In order to help them make that decision, Edmonton bookkeeping says there are differences in what they have to pay to Canada revenue agency with these two options. If an entrepreneur decides to file their GST return on time, but there are errors making the filing incorrect, they could be assessed penalties as well as interest charges from Canada revenue agency. These penalties can be financially crippling to entrepreneurs, especially if they are new in the business.
If an entrepreneur has made the decision to file their GST return late, they will be assessed interest charges. The interest charges that they will be assessed is interest on everything that they owe the government at the end of the year, starting from the day they were doing to submit their return, up to the day that they submit that return. How much that ends up depending on how late an entrepreneur files, and how much sales tax they owe. However, Edmonton bookkeeping says that entrepreneurs should keep in mind that typically interest is a much lower amount to pay than a penalty, and if an entrepreneur is aware that this is the option that they are going to go with, then they can be proactive in remitting payment intermittently throughout the year to minimize how much they owe the government at the end of the year, and minimizing the interest that they will have to pay.
By being aware of these options, can help entrepreneurs create a great plan on how they are going to manage their sales tax that will have them avoiding paying unnecessary penalties, and minimizing how much interest they will have to pay as well.
Edmonton Bookkeeping | Helping Entrepreneurs Understand GST Filing
The reason why entrepreneurs typically need help understanding GST filing says Edmonton bookkeeping, is because it is a very complicated issue. Even if entrepreneurs are deciding to manage the finances for their business themselves in order to save money, they cannot count on their accounting software is able to help them create accurate GST returns.
Despite what accounting software that an entrepreneur uses, the sales tax is such a complex issue, that no accounting software has the ability to handle it without errors. Therefore, if an entrepreneur is deciding to handle the finances of their business themselves, they need to find out how they are specific accounting software is deficient in handling sales tax, so that they know what they need to do to overcome it.
Another thing that is important for entrepreneurs to know if they are deciding to manage the finances of their business themselves, is that they need to ensure that they are very diligent in updating their financial statements. Edmonton bookkeeping says that not only do they need to be very diligent, they also need to be careful to do it as accurately as possible. While most business owners understand how important it is to ensure that they are updating their financial statements in order to have accurate information that will help them make financial decisions. But also, because if an entrepreneur does not have up-to-date or accurate financial statements, they will never be able to remit or file the correct amount of GST. If this is a problem, they will be hit with interest and penalties that may because an entrepreneur to run out of money in their business.
A business owner can mitigate all of these errors if they decide to hire and Edmonton bookkeeping company manages this on their behalf such as always bookkeeping. The hiring an expert, entrepreneurs can ensure that they are getting their finances on accurately and that there GST will be filed accurately. In addition to that, a bookkeeper going to be able to actually file GST on behalf of the entrepreneurís as long as the business owner decides a consent form. That gives the bookkeeper the authority to file and represent business owners for tax purposes to Canada revenue agency.
By hiring Edmonton bookkeeping company to manage their finances in addition to managing and filing sales tax can help entrepreneurs free up their time. What they will do with this time, or accomplish all of the strategic priorities and tasks of their business that is going to help their business grow and be successful. When they no longer have to worry about learning sales tax, or keeping their financial statements up-to-date, entrepreneurs can be reassured that their finances are in good hands, allowing them to spend their time on what is going to allow them to grow their business.