When we meet new clients, one of the most common places we can help them save money right away is with GST/HST.
Many companies are filing more often than they need to be and are therefore often paying unnecessary late-filing penalties. Or else they are paying their bookkeeper every quarter or every month to file a GST return. Either way, filing more often than once per year is a waste of money for most companies. Simply by switching you over to an annual GST/HST filing that matches your fiscal year end, we can save you money.
Even greater savings can be found in the GST Quick Method. This is a calculation that you can elect to use that will often save you money. If you own a company that sells products with a high profit margin; if the majority of your expenses are wages, insurance, or purchases from outside Canada; or if you offer a service where you bill by the hour, you may be a particularly good candidate for the Quick Method.
The advantage for this calculation is that you don’t have to total up your Input Tax Credits (GST/HST paid on your expenses). Your GST you remit is just calculated at a lower rate – assuming that your credits are average for your industry.
If your accountant hasn’t explained the Quick Method to you or if you are wondering if it could save you money, contact us and see if we could be saving you money next year.