A common issue has resurfaced time and time again in discussions with people who are in sales or are self-employed. They tend to enjoy spending time growing their business and cringe when they have to do any form of administration. Eventually the workload becomes so overwhelming that it simply gets set aside, neglected, ignored and pushed away. Unfortunately, this is one of the reasons why people get overwhelmed with tax debt.
Below are a couple of best practices to help people get on top of their bills and their HST filings are the following:
Spend 30 minutes (or more) A WEEK reviewing your receipts from the week, preferably on the weekend or other free time when you do not have any competing interests.
Organize and file the bills by type, (i.e. utilities, gas, car maintenance, meals, etc.)
Prepare a master spreadsheet with a running count of all your bills and save the file in the cloud so you do not lose it.
Use online banking to review transactions and save your monthly statements in a secure place.
Review your work on a monthly basis to see if there is anything that you missed or if you need to change what you are doing.
Spending time on a weekly basis to do administration will reduce your overall workload. You will also find it a lot easier to complete your HST filings or your income taxes, because you won’t be forced to do everything all at once. It should also limit a number of expenses that may have otherwise been overlooked which will allow you to claim various deductions to reduce your tax liability.