If entrepreneurs do not understand how to manage or submit their GST correctly says Edmonton bookkeeping, they are putting their business at risk of getting assessed penalties that may be difficult to pay. This is extremely important for entrepreneurs to be aware of ahead of time so that they can create a plan of how they are going to manage and submit their GST in order to minimize errors and penalties.
The first thing that business owners usually ask when it comes to their sales-tax is how often do they have to file? Large corporations over $1.5 million have to file their GST either monthly or quarterly. However, for small corporations and proprietorships, they only have to file once per year says Edmonton bookkeeping. The deadline of when that is does depend however on what entity they own.
Corporations must file their GST three months after their corporate year-end, while proprietorships can file on June 15 every year, alongside their personal tax return. Keeping this deadline was in mind is extremely important for an entrepreneur, especially if they had previously owned a proprietorship and then recently grew their business.
The next thing that entrepreneurs need to know, is if they have a corporation, where GST will be done for their corporate year-end is complete. Edmonton bookkeeping says this is where most entrepreneurs end up creating GST returns with errors in them. If they do not wait until their corporate year-end is done, they could be entering incorrect information, no matter how updated their financial statements are. However, hiring Edmonton bookkeeping company to manage their financial statements can help ensure that the information is as accurate as possible. However, the only surefire way to ensure there are no mistakes is to file late.
Filing late is usually a strategy that many entrepreneurs decide to go with, they just need to keep in mind that they will be assessed interest for the entire. From the time from the date that their file was done, to when they submitted it. If entrepreneurs are going with this strategy, the more tax they owe at the time of filing, will increase the amount of interest that they have to pay. Therefore, entrepreneurs who are planning on filing their GST late are going to make their GST payments to Canada revenue agency in installments, so that they can minimize the amount of interest that they will pay.
By being aware of these limitations, Edmonton bookkeeping says that entrepreneurs can come up with an efficient plan on how to manage their sales-tax throughout the year. By creating this plan, it can often give entrepreneurs a peace of mind that they can use the free time in their business to accomplish all of the strategic priorities of their corporation and to do all of the things that they need in order to grow their business like sales, marketing and ensuring their business can scale up so that they can be successful.
Edmonton Bookkeeping | How To File GST Correctly
It is very important that entrepreneurs learn all of the ways that submitting GST returns are complicated says Edmonton bookkeeping. This can help ensure that an entrepreneur is prepared, and has a plan in place so that business owners can minimize problems that might be associated with filing it inaccurately in the beginning. There are a lot of things that entrepreneurs need to understand, especially if they are deciding to try to manage the bookkeeping of their business themselves.
One of the first things that entrepreneurs need to understand, that if they are counting on simply learning their accounting software really well in order to ensure that they have been managing and filing their GST accurately is going to lead them into problems. The reason why is because accounting software is not able to handle help complex GST is in this country. Therefore, while the accounting software has the capability to handle some of the sales tax requirements, if an entrepreneur is counting solely on the software, they will end up with mistakes. If they are going to use accounting software, they need to find out from the software company in what ways it does not manage in sales-tax properly, and what an entrepreneur can do to make up for that.
How complicated sales-tax is even when using accounting software, Edmonton bookkeeping says that it still might be in an entrepreneurís best interest to hire experts like always bookkeeping to manage their finances as well as their GST on behalf of the entrepreneur. In fact, many business owners do not know that bookkeeping company can actually file GST on behalf of the business owners. All they need to do is send the bookkeeper a form that they caught from Canada revenue agency when they applied to get there GST number, and then sign a consent form. That gives Edmonton bookkeeping companies the authority not only to file GST on their behalf, as well, representing owners for tax purposes also.
Not only can bookkeepers help entrepreneurs understand and manage their sales-tax, but in order to ensure that an entrepreneur has the correct information in order to file their GST properly, they need updated financial statements. Not only do they need to ensure that they are updated regularly, but accurately as well. If entrepreneurs are trying to enter their GST return, and their financial statements are not accurate or up-to-date, how are they expecting to end up with the correct information on their GST filing? By getting and Edmonton bookkeeping company to help them out with that, entrepreneurs can ensure they have the most up-to-date and accurate financial statements possible, not onlyís they can manage GST better, but so that they can make better financial decisions in their business.
By managing their GST effectively can help entrepreneurs ensure that they are prepared to handle the complexities associated with it, even if that means avoiding taking on themselves. If entrepreneurs pay for Edmonton bookkeeping company and avoid penalties that still cheaper than saving money trying to do it all themselves.