When my brother was little, he loved to play hide and seek. When it was his turn to hide, he would just shut his eyes really tight and assume that no one could see him. I apply that same principle to my financial issues. If I don't answer the phone, then the bill collectors don't exist. If I don't open my mail, then I don't have any bills that urgently need paying. And if I don't deal with my taxes, then I don't owe any money. Well, kinda, except when the government decides to freeze my bank account, then it's very real and I am keenly aware.
When you are in business for yourself you have to worry about two kinds of taxes: your personal taxes which you are responsible for deducting and paying, and your business taxes, which you are responsible for collecting from your customers and remitting to the government. It's all very fun.
When you earn income in business, the money is deposited into one account. Keeping the tax collected aside becomes a real challenge when times are tough. It comes down to "do I pay rent, or the government"? "Do I use these last dollars to buy stock to keep my business alive, or do I remit to the government"? It's easy to "borrow" these taxes with the most sincerest intentions of returning them, but weeks and months of poor business pile on top of each other and all of a sudden, it's time to pay the taxman and there is no money in the vault!
The next step on my journey to healing my business is to file LAST YEAR'S tax return - and to file for GST and PST. I am already feeling the weight lifting off of my shoulders!
No comments:
Post a Comment