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It is very important that entrepreneurs file their sales-tax properly in order to avoid making errors that could end in them being assessed penalties says Edmonton bookkeeping. This is much easier than many entrepreneurs believe, partly because since paying and submitting other taxes like income tax, CPP EI and fuel tax is much easier, they think the same should apply to sales-tax. Also, there are other complexities at work such as having a different filing date then their corporate year-end creates problems that take planning on behalf of the business owner to overcome. If entrepreneurs are going to avoid incurring penalties, they will be able to help ensure their business stays cash flow positive. Since running out of money is the second most common reason why entrepreneurs fail, avoiding penalties can help businesses succeed.

The first thing that entrepreneurs need to understand is not only are GST files do at a different date then their corporate year-end says Edmonton bookkeeping, but the GST is actually due three months before their corporate filing. The reason why this is a problem is that the information on an entrepreneur needs to submit on their GST return can only be found out by completing their corporate year-end. Therefore, entrepreneurs often have the decision between filing their GST incorrectly or filing late.

One thing that can help entrepreneurs make the right decision for their business on whether they should file incorrectly or if they should file late will be what the penalties associated with both are. An entrepreneur that makes mistakes on their GST return will be assessed penalties. However, an entrepreneur that files there GST late will be assessed interest. Which one is hire will depend on how much sales-tax an entrepreneur owes the government at the time of filing. Therefore, if an entrepreneur has been paying their GST and installments throughout the year, filing late can almost always be the better option. Because an entrepreneur will have minimal interest charges, and penalties can be quite severe.

When an entrepreneur has made the decision to submit their GST return late, they need to make that decision at the beginning of their fiscal year and have their Edmonton bookkeeping company be aware of this so that they can be making regular installments without filing. By doing this, entrepreneurs can ensure that they are being proactive to paying their taxes ahead of time and minimizing the interest payments they know that they are eventually going to incur.

By creating this plan proactively and ahead of time, can help ensure that entrepreneurs are managing their sales-tax as efficiently as possible, minimizing problems and avoiding penalties. Having this plan ahead of time can help an entrepreneur simply focus on the most important tasks at hand, which are growing their business and being successful. By spending their time on strategic priorities like sales and marketing, and scaling up their business and leaving the finances to Edmonton bookkeeping companies like always bookkeeping can help ensure entrepreneurs doing everything that they can to be successful in their business.

Edmonton Bookkeeping | What Business Owners Should Learn About GST

It is extremely important that entrepreneurs learn that sales-tax is a complicated matter says Edmonton bookkeeping. Not only are there are many things to keep straight with how to file, but even the type of the business and how much money their business makes changes when they file GST significantly. In order to help entrepreneurs understand this, there are several things they can do. However, business owners may simply be better off in leaving managing their sales-tax and finances to the experts, so that they can focus their time and energy on activities that are going to grow their business.

The first thing that entrepreneurs should understand is regardless of what kind of entity their business is if they are making over thirty thousand dollars in the year, they are required to collect and remit GST on behalf of Canada revenue agency says Edmonton bookkeeping. However, since entrepreneurs also will end up paying less in taxes if they incorporate to once their business hits fifty thousand dollars, an entrepreneur should be making the decision if they should get a GST number for their proprietorship, or hold off until they incorporate, and then incorporate sooner. The reason why is because the GST number they use as a proprietor is nontransferable to their corporation. Edmonton bookkeeping says that a corporation is a completely separate legal entity, and cannot use a GST number that was previously associated with the business owner. Therefore, if an entrepreneur is growing their business they may choose to not get their proprietorship a GST number, and instead, incorporate early and get a GST number at the same time.

If an entrepreneur has previously had a GST number associated with their proprietorship, and they decide to incorporate, they need to understand that they have to close that GST number down. If they simply stop using it, the Canada revenue agency may think that they are still operating their business, and are not filing taxes. If this is the case, Edmonton bookkeeping says that Canada revenue agency will take the amount of GST that the entrepreneur paid last year and assessed them for the same amount. In order for business owners to avoid getting a tax bill unnecessarily, they should ensure that they are shutting down their GST number once they incorporate it.

In order to help deal with these complexities, business owners may simply decide instead to hire and Edmonton bookkeeping company such as always bookkeeping in order to help them manage their sales-tax. Not only will this minimize their chances of filing incorrectly, but a bookkeeper will also help an entrepreneur end up getting up-to-date and accurate financial statements that are going to be able to use in their business to make informed financial decisions.

Understanding how complex GST is can help entrepreneurs employee experts wherever necessary to ensure that they are managing it correctly. By doing this, entrepreneurs can free up their time and energy and put towards accomplishing the tasks that they need in order to grow their business.