Dreaded Tax Time P1

Hi everyone!

Today I want to focus on a more general topic - taxes. Not necessarily the most interesting topic but yet relevant to all. Now I just want to begin with saying, I think all of you should consult an Accountant if you are having any questions, concerns, etc. At the end of the day, I am not an accountant, I have merely done taxes for my former business as well as did more specific research. However, it is nice to get some comfort by being able to understand why your accountant may have suggested something in particular.

First off, if you work for someone else then they will give you a T4 and you won't have as much to do. BUT if you work from home, rent out a chair, or own a business and make $30,000+/year then sorry Darling, you are going to have to do your taxes.

'They' say you don't need a GST number if you don't make more than $30,000 within a 12 month period, however it is one of those things that I would suggest being cautious about. If you are near that range, be safe and not sorry. Plus it is possible that the Government will owe you money so it is important that you file your income tax.

Whether you are getting a GST/HST number or not, there are some things you need to get in the habit of. Keep all of your receipts - this is very important. If the tax you pay on that product outweighs the tax you charged then you will be getting a tax return. On the flip side, if you charged more tax then you paid out then, yeah… you owe money… not so fun, but it unfortunately makes sense.

Which means, not only keep your receipts but keep detailed records… I'm talking daily/monthly sales, your customers - what do they get? Are they new or repeats? How do they pay? Each transaction should be recorded with the time of day, the date, the customer and their payment method, along with how much the service/product costs and how much they paid in tax.

I will separate this post into two, making it easier to absorb all the information. Next post you wont want to miss, it has a lot of good material in it!

Elise xox