The Benefits of the HST Quick Method for Canadians

As a Canadian, you understand the importance of filing and remitting your taxes correctly.

For those who are business owners, there is an important choice to make when it comes to how much HST to remit to the government.

The regular method requires tracking of all HST paid on expenses or services as well as what you’ve collected, while the quick method is simpler and more efficient.

Let’s explore why you should consider electing to use the quick method.

The Basics of HST Quick Method

The HST quick method allows small businesses to collect 13% on their invoices but only remit 8.8% of gross sales plus HST to the government.

Under this scenario, you do not need to track the HST you paid out on expenses either; any difference in what you collect and remit will be included as income.

This simplifies the tax process for small businesses that don’t have extensive accounting staff or resources available for tracking and filing their taxes properly. It also eliminates some potential errors that can occur with manual tracking methods.

The Advantages of Choosing Quick Method

There are numerous benefits associated with electing to use the quick method for filing your business’s taxes. It simplifies your reporting process significantly since you don’t have to keep track of all expenses associated with your business; instead, you can file one simple form at year-end containing just two figures—your total taxable sales and total GST/HST collected—and move onto other things!

Let’s Have a Look at an Example:

This streamlined approach also helps reduce tax preparation fees since fewer forms are needed to complete your return; this means more money saved which can be put back into growing your business!

Finally, because many small businesses run on tight budgets, they may benefit from being able to receive faster refunds by using this method rather than waiting months for processing under the regular system.

Will Using the HST Quick Method Help Your Business?

Assuming that your business meets all criteria required by Canada Revenue Agency (CRA), using the HST quick method is an effective way of saving both time and money when filing taxes each year.

Not only does it simplify the filing process but it also reduces potential errors associated with manual record keeping methods; this means faster refunds which can help put money back into growing your business!

So if you are a Canadian who owns a business that meets CRA criteria, considering using the HST quick method. It could be a great option for both reducing tax preparation fees as well as receiving faster refunds from CRA!

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