If entrepreneurs end up falling there GST returns to the year, Edmonton bookkeeping says that if they are doing it correctly, they can end up filing their year-end return, owing penalties for calculating their sales-tax incorrectly, and owing more than they have actually paid. There are many things that entrepreneurs can learn to do that can help them ensure that they are filing their sales tax returns properly, as well as paying the correct amount. When entrepreneurs learn how to do this effectively, they can ensure that they will not end up paying penalties for paying the incorrect amount of GST.
The first thing that can help entrepreneurs understand how to stay on top of their GST filing is knowing when they need to file it. Edmonton bookkeeping says that the answer to this question depends on their entity. If they owe a proprietorship or a corporation, the answer is different. Proprietorships, for example, have until June 15 every single year in order to file. However, corporations need to file three months after their year-end, which is three months before their year-end filing is due, or quarterly.
The second thing that can help entrepreneurs understand their sales-tax, is how often they need to file their GST. They can file it bimonthly, quarterly or annually. The most important thing that entrepreneurs need in mind with their annual filing, is this is possible as long as they are making under $1.5 million a year. Many entrepreneurs prefer the option of filing yearly, at the same time as their corporate year-end. Since sales-tax is actually due to be paid with the Canada revenue agency three months before entrepreneurs year-end is due. Therefore, if an entrepreneur is going to file their sales-tax at the same time as their year-end, they should keep in mind that they may incur interest for not filing their GST on time.
There are several things that business owners can keep in mind about filing their sales-tax at the same time as their corporate year-end. Even though they are going to be incurring interest charges from filing it is three months late, Edmonton bookkeeping says that these charges are less then they would pay in penalties if they file that incorrectly. Since an entrepreneur will understand exactly how much GST they owe once they have completed their year-end filing, it may be a lower risk to pay the interest charges associated with paying three months late then paying the penalties associated with filing on time, but making mistakes.
When business owners understand how to file their sales-tax properly, they will be able to avoid making mistakes and errors that could end up costing them more money in penalties. They have any questions about how to stay on top of this information efficiently, they can contact Edmonton bookkeeping company always bookkeeping in order to ensure that they are getting all of their questions answered, they are paying their sales-tax properly.
Edmonton Bookkeeping | Managing Your Sales-tax
Managing the sales-tax of their business is a complicated process says Edmonton bookkeeping. In addition to having to keep track of all of the complexities associated with the sales tax, it can be even more difficult, entrepreneurs accounting software is not always able to handle these complexities. Therefore, it will be very important for entrepreneurs to learn how to manage their sales-tax efficiently so that they can avoid incurring penalties.
Many entrepreneurs aim to file their GST at the same time that they are filing their corporate year-end. However, this means that they will be filing their GST late. The reason why entrepreneurs would choose this is that by waiting until there corporate year-end, they can avoid making errors that would cost them penalties in their business. However, Edmonton bookkeeping says that by filing late, entrepreneurs may incur interest charges. However, business owners can avoid these interest charges if they are paying their GST in installments.
Business owners tend to think that they cannot pay their sales-tax in installments without filing, but this is untrue. Entrepreneurs can make monthly or quarterly GST payments to Canada revenue agency, without filing. This will allow them to keep the benefits of filing once a year, and eliminating the financial administrative burden associated with filing quarterly. This will also allow them to avoid the interest charges associated with filing late.
Even though a business owner will not know exactly how much GST they owe until their corporate year-end is done, which is why they choose to file their GST late, Edmonton bookkeeping says that by having updated financial statements can help an entrepreneur ensure that there GST filing is accurate. By hiring professionals to help them with their financial statements, entrepreneurs can be confident that the sales tax information that has while filing their GST on time will be accurate, and they will be less likely to have to pay penalties for filing the incorrect amount.
In addition to having a professional help them with their financial statements, entrepreneurs can even hire and Edmonton bookkeeping company like always bookkeeping to file GST on their behalf. They will need to give the bookkeepers the GST form that the CRA will send them when they signed up for their GST number. They will also need to sign a consent form that will give the bookkeeping company the authority to file GST on their behalf. The bookkeepers will then have rep ID is going to allow them to represent the business owners to Canada revenue agency for tax purposes, and allow them to file GST.
Another question that entrepreneurs often have when it comes to managing their sales-tax says Edmonton bookkeeper, is if they have a GST number as a proprietor, can they keep that same number when they incorporate? Unfortunately, this is not possible because corporations are considered a separate legal entity. Therefore, an entrepreneur must close the GST number associated with the proprietorship and open a separate one under the corporation.
By learning all about sales-tax, entrepreneurs can ensure that they are filing GST appropriately, and paying GST on time so that they can avoid interest charges and penalties associated with doing it incorrectly. They have any questions, their Edmonton bookkeeping company can help walk them through any troubles they have with managing their sales-tax.