Even though many entrepreneurs are familiar with the sales tax, Edmonton bookkeeping says that it does not make them experts at filing sales tax with the Canada revenue agency. It is actually a very complex issue, that entrepreneurs need to be able to understand properly in order to file their year-end sales tax return properly. There are several things that they should know, and many questions that entrepreneurs have when they are learning this in their business to ensure their doing it accurately.
The most common question entrepreneurs have when they are learning to manage their sales tax is: when is the filing deadline for sales tax? The answer to this question depends on what type of entity a business owner owns, proprietorships have a filing deadline of June 15 every year, which is the same as their personal tax return. However, when entrepreneurs corporations, their sales tax filing deadline is three months after their corporate year-end, which is threefold months before their corporate year-end filing is due.
These filing deadlines are for businesses that are making under $1.5 million in a year. Entrepreneurs that are making more than that, need to file their sales tax quarterly says Edmonton bookkeeping. While entrepreneurs making under that can file quarterly as well, it is typically considered an administrative burden, that is not necessary for smaller businesses.
The second question that entrepreneurs often have when it comes to understanding their sales tax is: are there advantages of the filing only once per year? The answer to this question is while Business owners can file whenever they want, the extra work that filing more often creates is not usually worth an entrepreneurís time. The reason why, is because it typically costs more in bookkeeping fees to file more often, and it does not guarantee that there year-end filing be any more accurate. Therefore, if entrepreneurs are not required to file quarterly, it is not in their best interest.
The third question that entrepreneurs often have is can they remit payment quarterly, but without filing? This is a great way that business owners can ensure that they are not mismanaging the taxes that they are collecting from their customers, but also this is a way they can help avoid paying additional interest charges. If an entrepreneur files their sales tax rate, in order to file it at the same time as their corporate year-end says Edmonton bookkeeping, by making payments in installments, entrepreneurs can minimize how much taxes they owe at the end of the year. The less than an entrepreneur owes at the end of the year, means the less interest that they will owe on that amount then they file late. This is a great strategy for business owners to implement in their business that can help them save money in the long run.
When business owners are able to understand the complexities with filing sales tax, they can create a plan that will allow them to minimize additional payments and penalties that they have to pay either by filing late or filing incorrectly.
Edmonton Bookkeeping | Most Asked Questions About Gst
One of the reasons why entrepreneurs often have many questions when it comes to managing there GST, especially when it comes to filing says Edmonton bookkeeping is because it is a complicated topic. I also am trying to save their business money by doing all of the financial record-keeping themselves, which leads to asking several questions to help them understand.
One of the most common questions that entrepreneurs have when they start managing their finances in their business, is: will and accounting software help with filing GST accurately? This is an important thing for business owners to understand, that even if they are very well-versed in using their accounting software, they would have the ability to deal with everything to do with the sales tax in that accounting software. It such a complex issue, that none of the accounting software programs that entrepreneurs can purchase are able to perfectly handle sales tax. Depending on which program and entrepreneurs using, they need to be aware of those programs weaknesses that they can overcome it.
The next thing that business owners often ask is: cannot updated financial statements help with GST filing? This is another very important question if business owners are unable to ensure that they are updating their financial statements regularly, or accurately, this will create problems with their sales tax. The reason why, is if business owners do not have updated financial statements, they will not have accurate information on how much sales tax they owe. This could end up underpaying Canada revenue agency, and making mistakes on the sales tax that they file. Edmonton bookkeeping says that this could end up with an entrepreneur getting penalties for filing incorrectly.
if a business owner is having a hard time keeping up-to-date with their monthly financials, they might want to consider hiring an Edmonton bookkeeping company to help them with that aspect of their business finances. That way, they can ensure that they have updated information in order to make financial decisions in their business, but also so that they can minimize the errors that they have on their GST filing.
When entrepreneurs using Edmonton bookkeeping company to help keep their finances updated, that bookkeeper can even file sales tax on behalf of the entrepreneur. By signing a consent form, is owners can then have someone take care of filing taxes on their behalf, so they can be certain that it is being handled more accurately than they could do a loan.
By allowing experts to help ensure that they have updated financials, as well as help with managing to file their GST, entrepreneurs can free up more of their own time. By not having to worry about taking care of their financial records, entrepreneurs can spend the free time that they have, accomplishing all of the important tasks that they need to do in their business that will help them achieve all of complete all the tasks they need to do to grow their business.