Ready to take the plunge and start your own business? Here are ten steps to successfully set up your small business:
- Register your business with the province of Ontario. Google “register a business Ontario” – make sure to use the ontario.ca page
- Think about setting up your systems for future growth now. It’s easier to set up the systems and processes once – set it and forget it.
- Register for the HST by calling CRA 1 800 959 5525. HST registration is mandatory when revenue exceeds $30,000. HST registrants can claim the HST paid as Input Tax Credits which lowers your cost of sales.
- Open three separate bank accounts for the business. One to deposit funds and pay expenses (Operating), one to save for taxes/HST (taxes), and one to set aside your profit (profit).
- Open a separate credit card for the business – not only will this let your track expenses, but it will also save you transaction fees in your business banking accounts
- Use an online accounting tool like QuickBooks Online or Xero to track your accounting. QBO allows you to send email invoices, collect payments directly, and automatically download transactions from your bank and credit card. The automation included in QBO is well worth the monthly fee. If you sign up for QBO, please invite us as your accountant.
- When sending an invoice to your client, include your address, your HST number, and the customer’s name and address. Unless your industry has long credit terms, make all invoices due upon receipt.
- Keep a kilometer log for your business mileage – QuickBooks Online has a free utility, There are other apps such as MileIQ, but a notebook will also work fine.
To have more details on this subject, watch the video below or click on the contact us link.