“Numbers aren’t the enemy”: 4 things women entrepreneurs wish they’d known about money

1. The HST you collect isn’t yours

Bolt charges HST on everything she sells. Early on, she didn’t set it aside. “I should have had a separate account,” she said, “and taken whatever HST I’d collected that week and put it in there.”

Fear kept her from seeing how much she owed. She skipped her bank account, her bookkeeping software and her tax software. “I was afraid of it,” she said. Looking at the numbers, she now says. “Don’t be afraid of it. It’s the best data you can have.”

Making a separate account has a practical case behind it. Once a business’s taxable revenue passes $30,000 over four consecutive calendar quarters, it generally must register for GST/HST and charge it. That money is owed to the CRA, so keeping it apart shows what’s actually yours.

2. Income isn’t necessarily profit

A payment landing in your account might feel like profit, but it rarely is, said photographers Emily Anderson of EM Anderson Photography and Nathalie Amlani of Pictonat Photography. Getting to a shoot costs money. So does gear upkeep, and so does a long list of subscriptions, from editing platforms to memberships and online courses.

Amlani said she didn’t track expenses or get advice on it early, so she “had to learn quickly during tax time.” Now, they track numbers monthly and compare them with previous years. Their shared rule: “Stay on top of your numbers [and] subscriptions.”

Those subscriptions add up. Anderson and Amlani called them a “hidden expense” that builds over time. The CRA lets self-employed owners deduct reasonable expenses incurred to earn income, and only the business share of mixed-use costs such as a cellphone. The CRA also generally expects supporting records to be kept for six years, so a tidy folder pays off twice. TurboTax Self-Employed guides owners through those expenses, making it easier for them to keep track.

3. A global tax firm isn’t the same as a local expert

Bolormaa Boldbaatar solved her problem by asking a sharper question. Her business helps people around the world heal from trauma. She pays tax in Canada but serves clients abroad, so she hired an international tax firm which lacked core knowledge of her country of origin.

She replaced it with a less costly individual accountant and a Mongolian-based team member, who now work together. “International doesn’t mean that they know your situation or your country,” she said. She advises owners to hire a local accountant early, who can help “stay disciplined about money.” TurboTax’s new expert match can help owners find that kind of support, connecting them with a tax expert who fits their situation.

Her instinct to get specialist help fits how the CRA treats sales abroad. Many services exported to non-residents are zero-rated for GST/HST, but the rules depend on the service and the client, and the seller must keep evidence of the customer’s status. TurboTax Self-Employed connects filers with tax experts who know Canadian returns, not just returns in general.

4. Look at the numbers, and keep looking

Bolt’s system is simple. Once a week, she reviews what came in and what went out. “When you pay attention to it on a more regular basis,” she said, “you can make changes in real time.”

Others keep rituals of their own. Boldbaatar pays her team, pays herself and covers the business expenses. She has an accountant and a bookkeeper, and she still tracks her own money, so she knows “where my money is going in the business at all times.” Anderson knows her break-even figure, which keeps bigger goals from becoming “unnecessary stress.” Knowing the numbers protects an owner’s worth, too. “If you know your numbers, you know that what you’re charging is fair,” Anderson said. “So don’t get lowballed.”

Boldbaatar points to what sits behind the spreadsheet. “Don’t just look at the number, but also look at your emotions inside,” she said. “Are you reacting from lack, or are you reacting from abundance?”

Start before the season does

Self-employed Canadians have until June 15 to file, but any balance owing is due April 30. Incorporated businesses don’t have a specific date. Their deadline is six months after their fiscal year-end, with taxes owing due two to three months after. Starting early leaves room to do it right. TurboTax Self-Employed walks owners through business income and expenses. TurboTax BizTax helps incorporated businesses file their corporate returns.

“As long as you pay attention to it,” Bolt said, “you can actually make it work for you.”