Bookkeeping: A Secret Weapon for Thriving Startups

Finally, Gupta highlights essential annual filing requirements for businesses, stressing the importance of staying compliant with the CRA. Payroll remittances, including taxes deducted from employees’ pay checks, must be regularly submitted to the CRA. Additionally, businesses are required to file the Harmonized Sales Tax (HST) on a monthly or quarterly basis, depending on their sales volume. 

Corporate taxes are another critical obligation, with the T2 corporate tax return due annually. “Most startups have a December 31st year-end, but other year-ends are possible depending on what period makes sense for you,” Gupta explained, noting the flexibility businesses have in choosing a fiscal year that aligns with their operations. 

Effective bookkeeping is a fundamental pillar of startup success. “Think about it as a foundation, and then you build on the future predictions, assumptions in the modelling, so that you have better results for decision making,” states Gupta. By maintaining consistent and accurate bookkeeping practices, leveraging the right accounting methods, and considering the benefits of outsourcing, startups can better manage their cash flow, avoid costly errors, and position themselves for growth. 

As Gupta highlighted, “Startups should prioritize their financial management from the outset. This will empower founders to focus on scaling their business with confidence, knowing that their financial foundation is solid.” 

MNP is a valued partner of Altitude Accelerator. If you are interested in learning more about this topic or wish to find out more about MNP, please contact us at [email protected] 

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