We all know that running a business can be hard but following these tips can help our business be successful.
- Pay yourself first! try to stick with a reasonable amount each month and avoid taking all the money in the account. Let your business run for several months to that you see the pattern before taking more money.
- Set up a Savings Account to keep all of your tax money! Transfer all the HST that you charge your customers to this account. It is also important to put approx. 25% of your “pay cheque” into this account so that you don’t get the surprise at tax time of how much you owe.
- Set up a Business Account! Use this account strictly for business purchases and deposits. Your personal purchases etc. should never touch this account. If you are in need of the business funds, transfer the money to your personal account only. You will glad you did if you ever get audited.
- Hire an Accounting Department like Watkin Small Business Services! Hiring the right company will be the best investment decision you can make for your business. A good accounting department will always be around to answer questions and give you advice. They can also help you with your Financials, Payroll, HST et. and leave you time to run your business.
- Use a good Accounting software program like Quickbooks! You will be able to do estimates, invoices, sales receipts and expenses and email direct to the client or print off at the time of the sale. Keeping good records will be helpful at tax time as you can export a few files and forward them to the accountant at the end of year.
- Keep all your receipts! The CRA requires you keep your records for 6 years. Take pictures of all receipts and upload them to Dropbox. Place all paper receipts in monthly files and put them away in a file box.
- Incorporate the business to save money! Talk with your Accounting Department to see if the business is earning a decent income and would make sense to incorporate. Incorporating is more expensive to set up but worth the tax savings in the long run.
Following these steps will help your business succeed and grow. Running a business is extremely hard but starting off with the right “partners” will definitely keep your business on track and running smooth.