Intuit-CGA Ontario Survey Confirms Small Business Compliance;
Tax Filing Will be Next Challenge
MISSISSAUGA, ON, Nov. 17 /CNW/ - It took some time and help from others, but the majority of Ontario's 890,000 small business owners believe they are now HST-prepared. While more than one-third (34 per cent) say they spent one to three months getting everything in order, the overwhelming majority (90 per cent) are confident in their ability to keep business transactions compliant with the new tax regulations.
These are among the findings of a joint survey released today by Intuit Inc., makers of QuickBooks, and the Certified General Accountants of Ontario (CGA Ontario). The survey reveals a dramatic increase in HST-readiness among small business owners since the new regulations became effective on July 1, 2010. At that time, a similar Intuit survey revealed that more than half (54 per cent) of respondents felt that most small business owners in Ontario would not be ready to comply.
What changed? Aid from accounting professionals may have helped many get over the hump. More than half (55 per cent) from the joint survey say they conferred with an accounting professional for assistance, while 39 per cent consulted government or business publications.
"We are pleased to see so many small businesses are confident in being HST compliant," said Ted Wigdor, vice president, government and corporate affairs, CGA Ontario. "HST was designed to be easy for businesses to work with and is commonly viewed as the most efficient form of sales taxation around the world."
Concerns Mount as Tax Deadlines Approach
While the majority of small business owners in Ontario surveyed express confidence in their ability to be HST compliant, many tell a different story when it comes to accurately filing their year-end business taxes. Almost 40 per cent say they are very or somewhat concerned about filing incorrectly and facing fines. Nearly the same number (37 per cent) believe HST will complicate tax filing.
"There are HST benefits to be had," said Wigdor. "For anyone still getting up to speed, we recommend consulting with an accounting or finance professional to ensure they collect the proper amount of tax. Otherwise, they will be liable for the difference."
Technology to the Rescue
Ontario small business owners are increasingly turning to technology to manage their finances. Fifty-nine percent of those surveyed who are confident in their ability to be HST compliant use financial management software. Of those who were prepared on or before the HST deadline, 67 per cent said they used software, such as QuickBooks.
"HST-ready software, with tax remittance tools, streamlines the work and eliminates many of the concerns business owners have about tax filing," said Chris Davey, a senior marketing manager in Intuit's Accounting Professionals Division. "Combining this technology advantage with the support of a trusted accounting advisor and filing could prove to be the easiest part of dealing with HST."
To locate a CGA, businesses can reference CGA Ontario's accountant referral service at http://www.cga-ontario.org/applications/accountantreferral/default.aspx
Additional HST resources include:
About the Certified General Accountants of Ontario
Certified General Accountants of Ontario is the self-governing body that grants the exclusive right to the CGA designation, and controls the rigorous professional standards of accreditation and professionalism in accounting for its 20,000 CGAs and 8,000 students who are working towards their CGA designation in Ontario, in protection of the public interest. www.cga-ontario.org / www.cga-domore.org
About Intuit Canada
Intuit Canada ULC is a leading provider of business, financial and tax management solutions for small- and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including Quicken®, QuickBooks®, QuickBooks® Enterprise Solutions, SuccèsPME, TurboTax, and ImpôtRapideMC, simplify personal finance, business accounting, and tax preparation and filing.
Additional offerings include ProFile®, a professional tax preparation software suite, the QuickBooks ProAdvisor Program and the Intuit Developer Network for professional users and developers. All are provided by Intuit Canada or through its partners.
Intuit Canada has employees located in Edmonton, Calgary, Mississauga, Montreal and Ottawa. Intuit Canada is an affiliate of Intuit Inc., which is listed on the Nasdaq stock market under the symbol INTU. More information can be found at www.intuit.ca.
About the Survey
Angus Reid Public Opinion conducted an online survey from Oct. 26-27, 2010, among 200 randomly selected, Ontario-based small businesses. The margin of error—which measures sampling variability—is +/- 6.9 per cent, 19 times out of 20. The results have been statistically weighted according to the most current education, age, gender and region census data to ensure a representative sample. Discrepancies in or between totals are due to rounding.