Tip of the day #22 - Managing GST Payments
Barbara Steckly
GST out of sight out of mind - in the bank
Ah the torture of GST tax time!
The pressure to pay back money you probably no longer have…
Next year, why not get prepared?
Start a separate bank account for your GST at another bank so you won’t be tempted to touch it. What you don’t use, you can’t lose.
Transfer the 5% you collect on every sale to this account before making any other outgoing payments. It quickly adds up!
At the end of the quarter, when you file your GST, you will benefit from those nice deductions youreceive based on the GST paid on your purchases, which will ultimately leave some of the tax money you collected still in the account.
How handy to have that extra amount there building every quarter that you could use to pay your corporate taxes at the end of the year!
GST revenue - out of sight out of mind - in the bank!
What you can’t attain, …amasses more gains!
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