Discover the Benefits of GST and PST Filing and Preparation
Taxes can be complicated, particularly for entrepreneurs and small business owners. The rules for PST (Provincial Sales Taxes) and GST (Goods and Services Tax) need to be understood in detail to avoid incorrect filings and over or underpayment.
Savvy business owners rely on the help of experienced tax accountants for filing and day-to-day financial reporting. This eliminates costly errors and financially crippling tax bills.
Virtually every business in Canada is required to pay GST for taxable services and goods. There are some exemptions for zero-rated supplies, and rebates may be available for specific items and payments made. Every business has the responsibility of filing returns on time and collecting/remitting taxes on goods and services sold.
There’s More Work Than Small Business Owners Can Handle
The typical small business owner doesn’t have the skillset or even the time to handle tax preparation and filing in-house. Handling taxes efficiently requires year-round financial reporting, preserved documentation, and accurate accounting records.
With the help of bookkeeping professionals, a business can minimize the disruption and time it takes to file GST and PST each year. In many cases, working with an expert will also save money.
- Input tax credits from the Canada Revenue Agency can apply the GST and PST paid on business expenses to the taxes that are owed as remittance to the government.Businesses that generate gross revenue below the $30,000 threshold in a tax year may be exempt from GST/PST remittance. This could apply to new businesses that aren’t yet generating significant income, or businesses that have only operated for a portion of the full tax year.
- The tax paid on business-related expenses like vehicles, computer equipment, office supplies, company travel, and meals, etc. could be applied as input tax credits.
Determining exactly what a company owes, and the credits or exemptions it is entitled to is a serious challenge. Even with up to date accounting records, it could take hundreds of hours to analyze the data and prepare and file taxes.
The Benefits of Small Business Tax Preparation for GST and PST Filing
Some business owners do prepare and file their own taxes, but this is becoming rarer with the changing nature of business and the growing complexity of tax law.
A professional GST/PST tax preparation and filing service can offer significant benefits for small businesses and entrepreneurs.
With an expert, a small business will:
- Discover rebates and write-offs that are available.
- Avoiding missing complex and important rules that could result in costly penalties.
- Reduce stress during the tax filing season.
- Save resources that are better allocated to core operational tasks.
- Reconcile taxes with business financial reports from the past year.
- Learn where operating structure or internal policies could be changed to minimize the tax bill.
- Get help to develop a tax payment plan to eliminate heavy one-off tax payments.
Taxes are essential to support government services and prosperity in Canada. However, managing, preparing, and filing taxes can take business owners away from the tasks that they know best.
Tax filing season doesn’t have to be overwhelming. It won’t be with the help of highly experienced tax preparers and accountants.
Schedule your free consultation to determine the correct bookkeeping plan for your business needs