Why You Shouldn’t DIY Your GST Or HST Filing
If you’ve been collecting Goods and Services Tax (GST) or Harmonized Sales Tax (HST) from your customers, it’s important to understand how to remit those taxes back to the government. If you’re a first-time business owner, filing a GST/HST return may seem more complicated than filing your personal income tax. The information required and the process of filing the return are both very different, and you could end up making a lot of mistakes that could end up being costly. As experts in the field, we at Patncat Co Inc have written down why you shouldn’t DIY your GST or HST filing.
Reporting an incorrect number to the CRA
Filing GST/HST returns should be straightforward. However, it’s very easy to incorrectly calculate your GST/HST. You could be recording and reporting the wrong expenses and income. If you report the wrong numbers to the CRA, you have to refile within a fixed time period to fix it. This can be confusing and time-consuming. Also, once mistakes are made, it could lead to various negative consequences.
Overpayment of HST, interest, and penalties from the CRA
As soon as you register for GST/HST account, you must document all GST/HST you collect, as well as any GST/HST your business pays on supplies and services. However, if you haven’t been maintaining and collecting proper records, you could end up paying more or less than you actually need to. Overpayment could lead to you having to file for a refund which is a lengthy process. Underpayment could lead to unnecessary added interest and penalties being put on you by the CRA. Either way, improper filing due to a lack of knowledge and experience leads to a loss of time and money for you and your company.
Do things right - Hire a professional
The GST/HST requirements are complex. The rules governing what is taxable, what is not, what is exempt, and what benefits you can claim are incredibly intricate and everchanging. It is easy to make a mistake in calculating and filing your GST/HST. Use the services of a professional to ensure that you meet your GST/HST obligations and remain in good standing with the CRA. Accountants and bookkeepers have the knowledge, skill, and expertise to help you file your claim correctly and in a timely manner. They can do the calculations, report your HST on your behalf, and talk to the CRA if any issues arise.
If you are looking for a full-service bookkeeping firm in Stoney Creek-Cormac, reach out to us at Patncat Co Inc. We have more than a decade of experience! Over the years, we have continuously focused on improving our skills and qualifications to stay competitive in the market. Through us, you can be assured you have the best bookkeepers in the business and the most up-to-date methods and software. We offer bookkeeping services, tax services, and administration services to clients across Stoney Creek, Hamilton, Burlington, Niagara Region, Cormac, Pembroke, Eganville, Killaloe, Ottawa, Barry’s Bay, and the surrounding areas. To learn more about the services we offer, please click here. To get in touch with us, please click here.