Establishing clear procedures for processing returns and issuing refunds ensures accurate financial reporting and maintains customer trust. It is essential to record each return promptly in your accounting system, linking it directly to sales transactions to reflect genuine revenue adjustments. Implementing a standardized protocol helps prevent discrepancies and streamlines reconciliation at the end of each […]
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Running an e-commerce business in Canada offers numerous opportunities to reduce taxable income by claiming eligible expenses. From inventory purchases to marketing costs, understanding which expenses qualify ensures you don’t leave money on the table. Proper documentation plays a vital role in supporting your deductions, so keep detailed records of all business-related expenditures. Paying attention […]
Understanding how sales tax and income tax apply to your dropshipping business in Canada can significantly impact your profitability and compliance. Registering for a Goods and Services Tax (GST) or Harmonized Sales Tax (HST) number is essential once your revenue exceeds $30,000 in a calendar year, and failure to do so can lead to penalties. […]
Include shipping and fulfillment costs directly into your product prices to avoid unexpected expenses during checkout. Research shipping rates for various regions across Canada and set a standard fee or integrate real-time calculation methods based on destination, weight, and size. Clearly communicating whether these costs are included in the product price or added at checkout […]
Reducing transaction costs is pivotal for maintaining healthy profit margins in Canadian bookkeeping. By selecting payment processors with transparent fee structures and negotiating with providers, you can significantly cut expenses. Compare processing rates regularly to identify cost-effective options tailored for your business volume and payment types. Understanding the breakdown of processing fees–including flat rates, percentage […]
Engaging customers across diverse online marketplaces can significantly increase your revenue streams and broaden your brand presence. Selling on several platforms allows Canadian businesses to tap into different customer bases, each with unique shopping preferences and behaviors. Data shows that multi-platform sellers experience an average sales increase of 30% compared to those focusing on a […]
Maintain accurate sales records for at least six years to comply with Canada Revenue Agency (CRA) regulations. This includes detailed documentation of all transactions, including invoices, receipts, and shipping records. Keep receipts and invoices organized and accessible to support your filings and facilitate audits. Using digital storage solutions that ensure data integrity and easy retrieval […]
Accurate filing begins with understanding which tax forms your e-commerce venture must submit. Register for a GST/HST number if your annual revenue surpasses $30,000, and ensure you file the corresponding returns each quarter or annually, depending on your reporting schedule. Submit the T2 Corporation Income Tax Return if your e-commerce business incorporates. This form reports […]
Registering for GST/HST becomes straightforward for non-resident digital businesses that meet specific sales thresholds. If your total taxable sales to Canada exceed CDN $30,000 in a calendar quarter or over four consecutive quarters, registering is mandatory. Actively monitor your sales volume to ensure compliance without unnecessary delays. Once registered, collect GST/HST at the applicable rates […]
Track all Amazon FBA sales transactions meticulously by establishing a clear system that separates sales, refunds, and fees. Utilizing accounting software that supports real-time data sync with Amazon ensures you do not overlook any income or expenses. Integrate your Amazon seller account with your accounting platform to automatically import sales data, reducing manual entry errors. […]