While running a small business can be extremely rewarding and fun, it can also be challenging, particularly when it comes to managing the finances. Regular bookkeeping for any business is essential, no matter its size, as there are a number of financial obligations all businesses must meet. Where there isn’t someone experienced to take over this, professional help should ideally be sought.
If you’ve been muddling through with your business bookkeeping, or are seeking to make your bookkeeping processes more efficient, bookkeeping services in Surrey can help you minimize your taxes, make financial decisions that are better informed, and generally avoid a big headache over money.
In the absence of a professional bookkeeper, here are some things business owners can do to stay on top of their financial obligations:
Know exactly what your tax obligations are
Understanding the two primary taxes that will have an impact on your business: GST/HST and income tax, is crucial if you’re to avoid interest and penalties from the CRA. A bookkeeping service can help you get to grips with them both, and file on time.
Keep your personal and business finances separate
Never mix your personal finances with your business finances, or you may find it confusing when it’s time to file your taxes, manage your cashflow, and track expenses.
Use accounting software
Technology can help small business owners massively, and accounting software can make the tracking of income, taxes and expenses, a lot easier.
Be organized with your receipts
Did you know that the CRA requires all Canadian businesses to keep their income and expenses records for a minimum of six years? Fail to do this, and you put yourself at risk of an audit or may face losing deductions.
Meticulously track cash flow
Even if your small business is profitable on paper, without enough cash to pay all of your bills, you could still run into trouble. Managing cash flow responsibly will help you make better decisions related to spending, investments and growth, while keeping your business solvent.
Keep up-to-date with employee payroll and taxes
Business owners with employees in Canada must remit source deductions for all employees, including employment insurance (EI), Canada pension plan (CPP), and income tax from employees wages.
Put money aside to cover taxes
As well as tax-tracking as you go, it’s also important to put some money aside to cover your tax liabilities. With a pay-as-you-go system here in Canada, every business will need to make payments periodically, according to its earnings.
Regularly review your books
Instead of forgetting all about your finances until tax season comes around, with a little time spent every week or month on reconciling accounts, tracking expenses, and making sure everything is updated, you can easily keep on top of your finances, all year round.
Use professional bookkeeping services
With professional bookkeeping in Surrey, you can make bookkeeping blunders a thing of the past. Having a bookkeeping service manage your finances on a daily basis, will alleviate much of the work, leaving you free to focus your attention on other aspects of running your business.
No small business can operate successfully while staying on the right side of the CRA, without accurate and updated bookkeeping; it’s simply one area of running a business that it’s impossible to cut corners on without your business suffering. Investing in professional bookkeeping services could save you time, money, and a whole lot of headaches.