You may not have begun with the intentions of starting a part time business but an opportunity came along and you just couldn’t resist. Perhaps you are a crafts person and your finished products are becoming in demand where you have developed a market for them. Or maybe you have become the neighborhood babysitter and this is becoming a regular routine. Both of these and many other money making opportunities can put you into a part time business situation.
Now you have to begin to think like a business person. Not only do you have to fulfill your duties according to the type of business you are doing, but you now have some administrative obligations and most likely some new tax responsibilities. These tasks are not money makers but are a necessity when it comes to operating a small type company, even though you are just a sole proprietor.
The first thing you want to do is get organized with your new office chores. All of the paperwork that relates to your business must be kept organized. You may want to designate a small area of your home to your new office space. You won’t need much but you should have access to your computer in this area as it is a great administrative resource.
Even though you may consider your part time business as small you will be amazed at how fast the paper work can accumulate. You will thank yourself for getting organized right from the start when you discover you don’t have to run around like mad trying to gather all the necessary documents come tax filing time.
You may be excellent at the service or product you are providing but have no clue when it comes to the administrative responsibilities the business brings. You can easily learn the basics for this, keeping in mind organization as we mentioned, but also developing a system for record keeping of your income and expenses. A simple spreadsheet may be all that you need. In addition to this you will need to have some understanding of what expenses you are allowed to claim against your business in regards to your tax implications. There is a lot of free resources that you can utilize to learn this. When in doubt be sure to keep your receipts.
What you may want to consider is hiring a Toronto accountant who specializes in small business. This is an affordable expert that can really help you to stay on track with your business administrative obligations and your responsibilities to the CRA.
