If entrepreneurs believe that filing their sales tax is going to be an easy task, and they do not need to come up with a plan ahead of time, Edmonton bookkeeping says that they could seriously put their business at risk of having to pay penalties. Not only is sales tax a complex issue, but there are also things that business owners should keep in mind when it comes to filing it as well So that business owners can do it properly, and avoid paying penalties.
The first thing that entrepreneurs need to be aware of, is that they have a different GST filing deadline then their corporate tax deadline is. An entrepreneur is expected to file their sales tax a whole three months before their corporate tax return is due. The reason why this is important to note is that an entrepreneur might not know how much GST is due until they complete their corporate year-end. If the do not have updated financial statements, and file their GST, they may make errors. These errors might cause an entrepreneur to get penalized for their mistakes.
Even if an entrepreneur ensures that there keeping updated financial statements, even by hiring Edmonton bookkeeping company like always bookkeeping, it is not a guarantee that an entrepreneur is going to file their sales tax accurately. Therefore, there is always a potential for getting hit with penalties for doing it incorrectly. In order to avoid that problem, entrepreneurs can strategize to file their sales tax at the same time as their corporate year-end.
However, an entrepreneur needs to understand that if they are filing their sales tax late, they are going to owe interest charges on everything that they owe Canada revenue agency for the entire amount that they are late. Therefore, Edmonton bookkeeping says that if this is what an entrepreneurís strategy is, it is also within their best interest to be remitting their sales tax regularly to Canada revenue agency, so that they have the least amount of at the end of the year. This is going to minimize how much interest they will owe.
In order to come up with this strategy, entrepreneurs need to first have help in understanding sales tax and devising this strategy, such as talking to their Edmonton bookkeeping company. Then, they need to ensure that there keeping as accurate financial records as possible, and if they do not have the ability to do that themselves, they can get help. The third thing they must do ensures that their remitting payments without filing throughout the year so that they can minimize how much they owe the government at the end of that year.
The coming up with this strategy, entrepreneurs can ensure that they are filing their sales tax accurately and doing it in such a way that is going to minimize the amount of interest that they will have to pay. Without coming up with this plan, entrepreneurs may put their business at risk of penalties, and increased interest that may become a financial hardship to pay.
Edmonton Bookkeeping | How To File Sales Taxes Correctly
This is owners should understand that it is very important to learn how to file sales tax properly says Edmonton bookkeeping. The reason why is because not only is it an extremely complex issue, but doing it wrong can end up costing them even more money. There are a lot of things that entrepreneurs often do not know, that can help ensure that they are paying this tax properly.
The first thing that business owners should understand is when there GST is due depends on what entity they own. Proprietorships will have until June 15 every year to file their sales tax, which is also at the same time that they have to file their personal tax return. Corporations, on the other hand, have a different filing date because they have their sales tax due three months after their year-end, which is three months before their fiscal year-end is due. The only exception is if they make over 1.5 million, then they owe their GST filing quarterly.
Many entrepreneurs wish to pay their sales tax quarterly, and think that it is in their best interest to file it at the same time as well says Edmonton bookkeeping. However, this is not as beneficial as people think. Not only is there an administrative and financial burden associated with filing more often, it also and going to ensure that the final year-end filing is accurate, and it will not help an entrepreneur avoid penalties if they have done it wrong. If filing quarterly and going to ensure that an entrepreneur can do it more accurately, and it will cost them money to do it more often, there is no reason why an entrepreneur should file quarterly unless they are required to.
If business owners also believe that they are going to be able to avoid hiring and Edmonton bookkeeping company to save money and use their accounting software to help file their GST accurately, they are mistaken. Most accounting software does not have the capability to handle all of the complexities associated with managing sales tax. If a business owner is counting on their software, and not getting expert help, they will make errors.
In order to help an entrepreneur manage the sales tax properly, they can hire and Edmonton bookkeeping company not only to keep updated financial statements but to file their GST with Canada revenue agency as well. By signing a consent form, entrepreneurs can hand that entire complex issue over to the experts, who will ensure that not only are they filing accurately, but they’re also getting up-to-date financial statements that can help them in other areas of the business such as making financial decisions. This can help ensure that an entrepreneur is doing things properly while allowing them to focus their own time on all of the strategic priorities that are going to help them grow their business and become successful.