It's a bright sunny morning here in rural Ontario. A great time to blog and soak up a little Vitamin D.
This is $hit my bookkeeper says Part Two
With a continuation of yesterday's post, below are some topics that populate regularly with potential or new clients. Then they soon get trained "Jennie style" to keep their books legit.
I don't have the money to pay my remittance, can I report less and back it next month?
Whisky Tango Foxtrot (WTF) No! The government is not a bank. As a business owner you act as a trustee collecting tax on behalf of Canada Revenue Agency. Be it for HST/GST, Payroll tax, etc. This responsibility is to be taken seriously. After all it's these funds that help our employees retire, or collect Employment Insurance in the event of a disruption of earnings. Not to mention you are able to go to the hospital when ever you please!
So continue to report what you owe and pay it. Falling behind on your remittance can crush you. The penalties and interest alone should deter you enough. Then figure out the real reason why you can remit. That's right look into your cash flow, analyze your profit and make changes! If you don't it will continue to be a cycle.
My business isn't making any money. I can't pay my mortgage.
So many entrepreneurs start a business and all of the sudden become a Martyr too. They suck their personal wealth dry, rack up their personal credit cards in hopes of the big pay cheque once things get going good. This isn't a good approach. Ultimately you'll become unhappy with a business that is running very much the same way you are operating your personal finances. Think of why you started the business. Was it to go bankrupt? Or was it to do something you enjoy? So enjoy it and learn to grow with it. Learn to pay yourself first. Cover that mortgage. Chances are you needed a second mortgage to start up your business. You need to maintain that! Keep involved in your bookkeeping story. Work with a good bookkeeper and or accountant. It's worth the bucks. Find one that will work within your budget. Be honest with them and yourself. Learn to chase profit and not rely on the next big contract. Where do you make money and focus on that.
Check out Profit First written by Mike MIchalowicz. This is a good guide to helping you allocate your business funds to meet obligations.
until next time have fun and profit on! Yeah that was kinda cheesy but that's me.
Need a little help? Contact me, Jennie.