If you filed your GST/HST return in the last few days, you might still be recovering.
Maybe you spent a weekend digging through your truck for receipts. Maybe you logged into your bank to figure out what a charge from July was for. Maybe you filed on time and still aren't fully sure the number was right.
That's not a problem at all. It's also very common, and it's usually not because the return itself is hard. It's because everything got left until the deadline.
Here are five simple habits that make the next one a lot easier.
1. Know your next due date
Your deadline depends on your reporting period. If you file monthly or quarterly, your return and payment are due one month after the period ends. Most annual filers have three months after their fiscal year end, with a different deadline for some sole proprietors.
You can see your reporting period and due dates in your CRA account. Take a minute to look yours up and put a reminder in your calendar two weeks ahead, so you have time to deal with anything that's missing.
2. Keep your receipts as you go
The GST/HST you pay on business purchases can generally be claimed back as input tax credits, but you need the right information to support them.
The details required depend on the size of the purchase. Once a purchase reaches $100, you need the supplier's GST/HST number. At $500 or more, you need a few more details, including your business name and a description of what you bought.
The easiest habit is to snap a photo of each receipt the day you get it. If you use QuickBooks Online, you can easily take the photo right through the app. A screenshot of an emailed invoice works too.
This helps both you and your bookkeeper. You won't have to chase a supplier months later, and your bookkeeper will have the receipt when it's time to match it to the transaction.
3. Set aside the GST/HST you collect
The GST/HST you charge customers isn't really your money. You're collecting it on the CRA's behalf, even though it lands in your bank account with everything else.
A separate savings account can help. Each time a customer pays you, move the GST/HST portion over. It's a small step that keeps the payment from catching you off guard when your return is due.
4. Spend 15 minutes a week on your books
Fifteen minutes a week is a lot easier than a full weekend every quarter.
Use that time to record your invoices, match your expenses, and ask yourself what any unfamiliar charges were for while you still remember. By the time your return is due, most of the work is already done.
5. Keep business and personal spending separate
When personal purchases run through your business account, every transaction has to be sorted out later. That takes time, and it makes it easier to claim something you shouldn't or miss something you should.
A dedicated business bank account and credit card make your records much cleaner. If something does end up on the wrong card, make a quick note of it so it's easy to sort out.
One last thing: file even if you had a quiet period
If you're registered for GST/HST, you need to file a return for every reporting period, even if you had no sales or have nothing to remit. Missing a return because business was slow is an easy mistake to make, and a nil return is usually much less work than dealing with one that's overdue.
Want it off your plate?
If you'd rather not think about any of this, we can help. Shingatok Bookkeeping Services works with small businesses across Canada, and GST/HST filing is included in our fixed price bookkeeping packages.
No pressure at all. If your books have fallen behind, that's okay too. Reach out and we can talk about where things stand and what would help most.
Sources
Reporting requirements and deadlines: File your GST/HST return, Canada Revenue Agency
Input Tax Credit Information (GST/HST) Regulations, Justice Laws Website
