How to Leverage your HST Collections

When you’re a new business owner, you’re inundated with information and generally have people around you telling you that you NEED to spend money to make money. You need a location, you need people, you need insurance, you need contracts, you need to market, the list goes on.

So where does the money come from?

·       Investors?

·       The Bank?

·       Your personal Savings?

What about CRA!?!

Generally, when you start a business you can set your HST filings to annual. This means as you’re collecting HST from customers you are only required to remit it 90 days after your fiscal year-end. That gives you 15 months of lead-time!

Now remember, if you’ve over extended yourself when that money is due, CRA isn’t lenient on interest/penalties so make sure you’ve budgeted accordingly in year one.

 

For more perspective or speaking engagement opportunities, contact adam@singersteinberg.com

Taxes, Taxes, Taxes.

April 30th has come and gone and June 15th is here. Nerd-o accountants like us know that these are the two busiest days of the year for the CRA tax filing CRA department.

This year we helped a few of our clients pop champagne as they got their tax refund for the 2016 year…but why the celebration?

The biggest misconception with taxes is that ‘getting’ a refund is good. Where it’s certainly not bad to get money from the government, this is not an instance of the government giving you their money. This is the government giving you back YOUR money.

Refunds are provided to people who have overpaid taxes for the year. This means your hard-earned money was being held by the CRA with a juicy return of 0% all year, not great.

So, next time you file your return and your balance owing/receiving is zero…we’ll have real champagne celebration.

For more perspective or speaking engagement opportunities, contact adam@singersteinberg.com

Group Benefit "Tax"

Recently the Ontario government backed down from mimicking the ‘taxable’ concept that Quebec residents faced with receiving Group Health and Dental benefits…and let’s hope that concept is left off the table for a long time.

What most people don’t realize is that the demographics and usage of the group largely determine the cost of the group benefits. So essentially the single 21-year old who never uses the plan helps the ratings of the 62-year old’s family of five. Now this is a good thing for sharing costs and risks, but the taxation of this starts getting complicated and inequitable. 

So, what happens if these plans become taxable in the long-run? There’s a myriad of answers, but my crystal ball says employee costs will soar…if you tax someone for a benefit, they’re going to start using it and if they start using more benefits, costs will rise.

For more perspective or speaking engagement opportunities, contact adam@singersteinberg.com