What are some HST Best Practices?

HST is never your money. Just like personal tax, don't spend it; open up an account just for HST, and one for personal tax. You can do monthly, quarterly or annually, depending on your business or volume of sales. Monthly is nice if you're worried about cash flow, as is quarterly.

Going to a higher frequency would also force you to do your books more frequently. Note: you need to be diligent, as if you miss your filing you'll be listed as a late filer and will incur a penalty, and you'll be charged interest on your overdue account.

 

Tips for newer entrepreneurs

Engage with an accountant before you get into business. They will be able to help provide ideas to help you structure things in terms of the banking side of things, keeping things separate, optimal pricing strategies, etc.

Get set up with a proper bookkeeping system. You need to understand your books in order to understand your business and its profitability.

 

Keep track of your books all the time. Keep your books up-to-date. It is one thing to have a system, but if you don't use it then you are sabotaging yourself.