Back To School
As per my latest blog published in the Ottawa Business Journal, September was Back to School and Back to Business! With that, we find many new businesses are starting to think about their accounting needs.
Here are 5 most commonly asked questions:
Should I Incorporate?
Most people are tempted to do so for the tax savings, but these savings may not apply to your situation! That said, there are four other reasons you may want to incorporate. I suggest you consult with a professional to review your options.
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When should I get an HST account?
Some businesses don’t require an HST account as their product or service may be HST exempt. However, if you do qualify, once you reach $30,000 in income in a fiscal year, you must register. DYK, you can register by phone, yes, it’s that easy. (1-800-959-5525). Food for thought – if you wait, you are “announcing” that you are a small business, making less the $30,000, is that ok?
What does Canada Revenue Agency (CRA) need from me, and when?
It depends on the type of business you start, I don’t mean industry, I mean, are you a sole-proprietor, partnership or Corporation. They could have different yearends. You may have one or all of these: Tax, HST, and Payroll accounts. They all have different deadlines, ie payroll is usually the 15th of the following month, while HST could be monthly, quarterly or annually and tax is annual, but may require instalments throughout the year. You need to be clear on your deadlines as CRA is assuming you know or expect that you’ll get help to make sure you know!
How long do I have to keep my paperwork?
7 years in total, 6 years back and the current year. This includes all things relating to accounting: statements, invoices, bills, cheque stubs, deposit slips, etc. Hint – not sure, keep it!
What should I use to maintain my books?
An accounting software package is best. A spreadsheet may also do the trick but make sure it includes everything you need. It can easily provide The Income Statement information: Revenue and Expense totals which is what Canada Revenue Agency requires for Sole Proprietors and Partnerships. However, a spreadsheet is not recommended for Corporate books because you need to maintain a Balance Sheet. Hint use something popular in your area so you can get training and ongoing support if needed.
There is so much more to share about these questions, and things you don’t even know to ask! That’s why it’s best to get a professional involved at least at start up to ensure you are: setup properly, understand all your requirements & deadlines and be equipped to make educated decisions.
At accountrain – We’ve Got You Covered