Entrepreneurs may not consider how complex managing and filing their sales tax will say Edmonton bookkeeping. If they are unaware of this ahead of time, they can end up getting to the end of the year, submitting there filing and realizing that because it was done incorrectly, they have to pay a whole bunch of penalties and interest charges that could have been avoided. Because it is so complex, business owners need to be aware of different issues associated with that in order to ensure that they are coming up with an efficient plan ahead of time, and increasing their chances of finding it properly.
The first thing that business owners need to keep in mind when they are creating their sales tax plan is that there sales tax filing is due three months before their corporate year-end filing is due. This can create issues if a business owner files there GST before their corporate year-end is done. If they have made errors on their GST filing, they can face penalties. Therefore, Edmonton bookkeeping says the choice for the entrepreneur is between if they should file early, and chance doing it incorrectly, or paying late, and to get interest charges.
Most entrepreneurs would opt to file their GST without a plan in place, many entrepreneurs would never want to file their sales tax late. However, after consulting with Edmonton bookkeeping companies such as always bookkeeping, business owners may realize that penalties for filing their sales tax incorrectly are much higher than the interest charges that an entrepreneur would have to pay a by filing late. Therefore, an effective sales tax plan might have an entrepreneur filing their GST return late, and avoiding penalties.
If an entrepreneur has decided to file their GST late, in order to ensure that they have the correct information prior to filing, Edmonton bookkeeping says the next thing that they should keep in mind, is that they can make regular payments of their sales tax to CRA without filing. The reason why they would do this is so that they can minimize the amount of money that they owe Canada revenue agency at the end of the year. This will ensure that they are paying a minimal amount of interest charges possible when they file their sales tax three months late.
By being aware of all of these complex issues, entrepreneurs can create a plan that will ensure that they are filing the most accurate GST return possible, and paying the minimal amounts of interest. However, this is only possible when business owners create an efficient and effective plan with their Edmonton bookkeeping company. When entrepreneurs come up with an effective plan associated with their sales tax, they can ensure they are doing the best thing for their business. Business owners should be creating a plan as soon as they become entrepreneurs to ensure they are as prepared as possible. As zig Ziglar has said, when you stop planning and preparing, you stop winning.
Edmonton Bookkeeping | Paying Sales Tax Properly
it is very important that entrepreneurs become familiar with sales tax as soon as they become entrepreneurs says Edmonton bookkeeping. This is not just because as a business owner, they have to collect and remit sales tax to Canada revenue agency, but also because keeping track of it, and filing it correctly can be challenging due to the complexities associated with it. Therefore, entrepreneurs should learn as much as they can about sales tax, and get help from their Edmonton bookkeeping company as often as they need.
The first thing that entrepreneurs should keep in mind is filing GST is different for proprietors then for owners of corporations. When an entrepreneur owns a proprietorship, there GST filing is due June 15 every year, alongside their personal taxes. All corporations, on the other hand, have the filing deadline of three months after an entrepreneurs corporate year-end, which is three months before an entrepreneur’s corporate year-end filing is due. This is very important to note so that entrepreneurs can create a plan on how to file their GST before they know how much they actually all.
It is also important for an entrepreneur to note that if they own a proprietorship, and have a GST number, once they grow that proprietorship, and need to incorporate, the GST number is actually nontransferable. Not only must they get a new GST number, but they also must close their GST number associated with their proprietorship. The reason why, is if they do not close that GST number and they also note file their year-end with their proprietorship, Canada revenue agency will self assess the business, usually for what they owed for GST the previous year, and hand the business owner tax bill for the proprietorship. To avoid getting this bill that might complicate their ability to operate their corporation, entrepreneurs should ensure that they are closing their GST number.
In order to help entrepreneurs understand the complexities behind managing their sales tax, entrepreneurs may simply hire and Edmonton bookkeeping company such as always bookkeeping to help them not only ensure that they have up-to-date financial statements that will help entrepreneurs have accurate GST filing. But also, there will be able to actually represent business owners for tax purposes with Canada revenue agency and file their sales tax off half of the business owner. This can help ensure an entrepreneur has the greatest chance of filing their GST correctly.
By being aware of all of the various complexities associated with sales tax filing is not remitting, entrepreneurs can plan for what they are going to do to ensure that they are handling it properly, and as efficiently as possible. Whether there plan is what they are going to do on their own, or if their plan includes hiring and Edmonton bookkeeping company, business owners will be able to ensure that they are managing it as efficiently and effectively as possible to minimize interest and penalties. Doing this, can help an entrepreneur plan the growth of their business, and becoming successful.