As a small business, staying on top of your accounting can make or break your success. We’ve compiled proven accounting tips to help you stay ahead of the game.
In the February issue: Keep accurate and detailed records of all financial transactions, including income and expenses.
Tip of the Month for March:
Understand and comply with all applicable tax laws, including income tax and GST/HST.
Income tax is the federal and provincial tax that is applied to the income earned by your business. As a small business owner, you’ll need to file a tax return each year to report your business income and claim any deductions or credits that you’re entitled to. It’s important to understand what types of income taxable and what expenses are deductible, as well as the tax rates that apply to your business.
GST/HST, on the other hand, is a value-added tax that is applied to most goods and services sold in Canada. As a small business owner, you’ll need to register for GST/HST if your business has annual taxable sales over $30,000. Once registered, you’ll need to charge GST/HST on your sales and file periodic returns to remit the GST/HST you’ve collected to the government.
It’s also important to note that there are different GST/HST rates for different provinces and territories.
By understanding and complying with all applicable tax laws, small business owners can ensure that they are paying the correct amount of taxes and avoid penalties and fines. It’s also a good idea to hire a professional accountant or tax lawyer to help you navigate the complex tax laws and regulations in Canada.
Want to learn more? Get your FREE Business Fitness Assessment with Expert Accounting today!
For more information:
Jason Good – Manager, Expert Accounting
1 (866) 956-5328
jgood@megagroup.ca
Ron Muller – General Manager, Expert Accounting
1 (778) 477-0040
rmuller@megagroup.ca