Working with your Corporation Part 2: Bookkeeping & GST

In this blog, we’ll go through some guidelines you should know about Bookkeeping and GST remitting. 

Bookkeeping:

Businesses must be looked after on a regular basis.  Bookkeeping should be done regularly, preferably no less than monthly.  Kustom Design has packages that include bookkeeping. However, you may also choose to do your own bookkeeping.  Many realize that is not a wise use of time when they could pay a small fee for monthly bookkeeping and utilize those hours marketing their business, or running their core business.  It is good, however, to at least understand the process of bookkeeping.  It is also very important to look at basic financials of your business each month to see if you are headed in the right direction or not.  Training and seminars on Bookkeeping are offered by Kustom Design for this purpose - to provide business owners with the basic knowledge of the bookkeeping process.  Whether you choose to do your own bookkeeping or have Kustom Design do your bookkeeping, we are here to help you!

GST remitting:

GST is required for a business when the business’ gross income is over $30,000 in a year, whether a sole proprietorship or a Corporation.  The business can also voluntarily register for GST.  GST can be remitted annually, quarterly or monthly for larger businesses.  This must be decided when you first apply for the GST number. It is best to file annually and make installments quarterly, if necessary.  The GST owing is simply calculated by the GST collected minus the GST paid on expenses (unless you are on quick method).  Kustom Design includes GST remitting with all 3 of our accounting packages.

Important Note on GST: Always keep your GST filings up to date!  If you fall behind CRA may Notionally Assess you, which means they pick an amount that you owe, and they will then collect it from you, even if it means freezing your bank accounts and trying to collect from your clients!

Next week, we’ll discuss payroll remitting, corporate year ends and annual returns.