Operations and financial management can be complicated and time-consuming. To make things simple and digestible, we’ve compiled the most important details that will help you get started.
What you need to know about accounting and bookkeeping
While often grouped together as the same thing, accounting and bookkeeping actually serve different purposes in business.
So what’s the difference? Well, in short, accountants are responsible for preparing budgets and loan proposals, as well as working with the costs and prices of a company’s products or services. Accountants may also provide important financial information and analysis.
On the other hand, Bookkeepers are responsible for sorting, organizing, and keeping track of all of your financial paperwork. Bookkeepers input your data into an accounting program and ensure that you save copies of all of your receipts.
Learn more about Accounting Versus Bookkeeping and check out our Basic Bookkeeping guide.
What to know about taxes
As a business owner in Saskatchewan, you are required by law to pay taxes. Keeping financial records is good business practice and is a requirement for tax calculations.
There are two primary forms of sales tax that you should understand as a business owner – PST and GST.
Provincial Sales Tax (PST)
In Saskatchewan, a provincial sales tax rate of 6% applies to the purchase, importation, or rental of certain goods and services. When appropriate, a business must apply 6% provincial sales tax to the total retail price (excluding all other taxes).
Goods and Services Tax (GST)
In Canada, GST is a tax that almost everyone pays on most goods and services. When appropriate, a business must apply 5% GST to the total retail price (excluding all other taxes) of goods or services.
Learn more about PST and GST in Saskatchewan, including how to register for PST and how to open a GST account.
How to know if your business is profitable
“Am I turning a profit?” is the question every business owner wants the answer to. But the answer isn’t always as simple as whether or not you’re selling a product or service.
Using tools such as our Profit Pricing Guide and Break-Even Analysis are relatively simple ways to plan and understand your business’ finances and determine if your business is profitable.