Filing a GST payment does not have to be stressful. Staying organized and keeping receipts will make the process manageable. Unfortunately, many Canadian business owners are not ready for the GST season. This lack of preparation can result in unnecessary tax penalties and stress.
With the GST season fast approaching, our team has created a short readiness list to help business owners prepare ahead of time.
Step One: Identify Your Type of GST Filing Entity
Before filing a GST payment, you must know your filing entity type. The most common business structure is a sole proprietorship, which is taxed as an individual. Corporations and partnerships are other common types of GST-paying entities.
Step Two: Organize and Document All Income Earned
You will need to know how much money your business made in the GST season. To do this, gather any invoices, payment slips, or checks for the current GST season. Tally up all relevant income earned, and GST collected during the current filing period, and keep it close by for the filing process.
Step Three: Calculate All Business Expenses Containing GST
With your income tallied up, the next step is to calculate all business expenses that contain a GST tax. The GST paid on business expenses will be used to deduct from the total GST payment. These credits and known as input tax credits.
Any input tax credit claimed must be relevant to a business and the cost must be accurate. Keep the receipt of any GST claim safe in case it is needed.
Step four: Contact a CPA for Assistance
Being prepared for the GST season is a consistent process. Staying organized and on top of bookkeeping will make the process simple. However, sometimes questions or complications arise when filing a GST payment.
When that is the case, it is time to contact a professional. At NaickerCPA, we have extensive experience filing GST returns for small individuals and large businesses. Our services are confidential.
We manage each unique tax filing with care and look for tax-saving opportunities for all our clients. Before filing your GST taxes, contact us to ensure that you are ready for the GST season.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.