It may be a very complicated issue for business owners to keep all of the various taxes they need to pay his an entrepreneur organized says Edmonton bookkeeping. Not only do they have to ensure that they are being income tax, CPP and EI, from withheld funds from their staff, but they also have to collect GST from their customers on every purchase that they make. How an entrepreneur manages that money that they are collecting on behalf of the government, is very important. I am always they have to ensure that there collecting it and remitting it correctly, but at the end of the year, filing it correctly is extremely important as well.
In order to help business owners understand how to file their GST, is the most commonly asked questions that can help business owners on how to do it correctly, so they will not incur any additional payments. The first question that entrepreneurs have is when do they need to file their GST? It depends on what type of entity they own, as well as how much money they make in a year. Proprietorships have until June 15 to file their sales tax, which is the same day is filing their personal tax return. If entrepreneurs own corporations however as long as they are making less than $1.5 million per year, they can file yearly, three months after their corporate year-end. However, if they make more than that, they will be required to file their sales tax quarterly.
Financial manures wonder if there are any advantages to filing annually, over quarterly. Edmonton bookkeeping says the biggest advantage is business owners do not have to bear the administrative burden that is associated with filing quarterly. Not only does filing quarterly not guarantee an entrepreneur is going to have an accurate year-end filing, but the additional costs associated with paying a bookkeeper to take care of that filing is not worth an entrepreneur paying more, and not guaranteeing or accuracy.
Another question that entrepreneurs often have is can they pay their sales tax in installments without filing? Answer to this question is yes, and it is a great strategy that business owners can use in order to ensure that they are remitting the appropriate amount of sales tax, and not worried about mismanaging the funds for the year. But as well, this can help ensure that an entrepreneur owes the least amount of taxes than they file their sales tax. The reason this is important says Edmonton bookkeeping, is so that entrepreneurs will incur the lowest amount of interest charges on the taxes that they do end up owing.
By understanding the answer to all of their most common questions about managing sales tax can help entrepreneurs ensure their doing it accurately. However, if business owners have any questions about managing sales tax, or filing they can contact their Edmonton bookkeeping company, always bookkeeping whose experts can help them ensure that they are filing and remitting properly so that they can get back to focusing on growing their business.
Edmonton Bookkeeping | Most Common Questions About Filing Gst
While entrepreneurs might not have a problem in collecting sales tax from their clients says Edmonton bookkeeping, however, if they have issues completing their year-end filing, they may end up paying penalties for filing incorrectly. There are several things that entrepreneurs need to know about filing their sales tax that can help them file properly so that they do not incur any additional payments that may cause their business financial hardship.
In order to save money, many entrepreneurs choose to do the bookkeeping of their business themselves. If they are doing that, they should keep in mind that what accounting software programs they use may not be able to handle all of the complexities associated with sales tax. Because of that, if entrepreneurs are relying solely on their accounting program to help them avoid problems, they may be making a mistake. They can find out all of the weaknesses their program has with sales tax as long as they are asking the right questions.
Another thing that business owners should keep in mind if they are managing the bookkeeping themselves, is that they need to ensure that they are updating their financial statements correctly as well as timely says Edmonton bookkeeping. The reason for that is not only so that it can help entrepreneurs make more informed financial decisions in their business so that they know how much money they need to remit to Canada revenue agency for sales tax, and so that they have the most accurate information possible for creating their sales tax return. If they do not have up-to-date or correct financial statements, they will be making errors that could be very costly.
If business owners are having a difficult time calculating sales tax with their accounting software, or in ensuring they can update their financial information as timely as they need to, an entrepreneur might want to consider hiring an Edmonton bookkeeping company like always bookkeeping to do their bookkeeping for them. This way, an entrepreneur can be certain that everything is being done correctly, and timely while allowing the entrepreneur to focus on all of the activities they need to do to grow their business.
By understanding the complexities around managing and filing their sales tax, entrepreneurs may choose to hire an Edmonton bookkeeping company instead of trying to do it themselves. By allowing experts to keep the books, up-to-date financial statements and even file GST on their behalf, entrepreneurs can stop worrying about doing it properly, and instead ensure that they are spending all of their time and energy on all of the activities they need to do to grow their business. Whether that is sales and marketing, scaling up their business, an entrepreneurís time is often best spent working on all the strategic priorities of their corporation, and not on struggling to learn how to manage their sales tax when they can pay someone to do that for them so that they can grow their company.