Inventory Tracking Matters

If you own a product-based business, keeping tabs on your inventory is more important than you might think. Not paying attention to depleting inventory levels can cost you sales which costs you money.  Here are some important reasons you should be keeping an eye on your inventory levels. Understand your customers’ needs By keeping an eye on your inventory levels, you develop a good understanding of what products your customers are purchasing. You’ll also be able to maintain inventory levels so you have enough product on hand to meet your customers’ demand.  If a product isn't moving, you may want to [...]

By | April 2nd, 2020|Accounting, Business, Technology|Comments Off on Inventory Tracking Matters

COVID-19 Provincial Tax Measures to Help Taxpayers

With everything that has been going on as a result of the COVID-19 pandemic, provincial governments have been acting quickly to put measures in place to help ease the financial burden on taxpayers.  COVID-19 Provincial Tax Measures Summary Many provinces are also offering utility and property tax payment deferrals. Check with your provider if this applies to you. Read about the Federal government tax measures in this post.  As these measures continue to change daily, please see these provincial websites for the latest information: BC Ministry of Finance Alberta Treasury Board and Finance Government of Ontario Click here for the latest [...]

By | March 26th, 2020|Business, Taxes|Comments Off on COVID-19 Provincial Tax Measures to Help Taxpayers

COVID-19 and Taxes: Important Updates

It’s crazy times right now among this COVID-19 outbreak. We want to remind you that we are here for you at Virtual Heights Accounting. The government announced some significant economic measures to support Canadians during this COVID-19 crisis over the past few weeks. The full economic plan is covered here in detail: https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html  Here is a brief summary of measures that may be relevant to you.  Personal Tax Extension of payment deadlines for personal incomes taxes to September 1, 2020; Extension of filing deadlines for personal income tax (T1) returns to June 1, 2020 (we should still file if you have [...]

By | March 23rd, 2020|Business, Not for profit, Taxes|Comments Off on COVID-19 and Taxes: Important Updates

I Haven’t Filed My Corporate Taxes in Three Years: What Should I Do?

Sometimes life gets in the way. It prevents you from meeting your responsibilities as a business owner or the director of a charitable organisation. It happens, and if you find yourself behind on your taxes (or maybe you’ve never filed a tax return), it’s always best to get caught up then try your best to stay on top of things.  The Canada Revenue Agency (CRA) has a number of programs available to help make getting caught up a little easier.  Voluntary Disclosure The CRA Voluntary Disclosure Program provides an opportunity for taxpayers to correct a misfiled return or file a return [...]

By | March 15th, 2020|Accounting, Business, Not for profit, Taxes|Comments Off on I Haven’t Filed My Corporate Taxes in Three Years: What Should I Do?

Do I Have to Keep a Mileage Book?

Yes, you do! But please don't stop reading. There are important things you need to know about keeping track of your business mileage. If you have a vehicle you own personally but also use for business, you must keep a vehicle expense logbook (also known as a mileage book).  Why a Mileage Book is Important You can only deduct vehicle expenses for the portion of expenses that relate to your business.  Keeping track of all your trips (both personal and business) is the only way to know how to split vehicle costs (such as fuel, insurance, repairs, and maintenance) between business [...]

By | March 1st, 2020|Business, Taxes|Comments Off on Do I Have to Keep a Mileage Book?

Fintech: What It Is and What to Watch For

Fintech is financial technology. It's the integration of technology with financial services. While some people are nervous about financial technology, it’s likely that a number of things you already use are fintech. Fintech is less regulated than traditional banking which provides a lot of opportunities and ease of use but brings risks and challenges as well. Common Examples of Fintech  PayPal is likely one of the most commonly used fintech on the market, but things are advancing so quickly there are new apps and programs coming out all the time. Other fintech includes: Crowdfunding like Kickstarter and Patreon, Mobile payments,  Blockchain [...]

By | February 15th, 2020|Technology|Comments Off on Fintech: What It Is and What to Watch For

The Benefits of Paying Wages

An important part of tax planning is determining if you will pay yourself wages out of your company. There are a number of benefits to paying wages, including increasing deductions in your company, contributing to your retirement, and receiving additional tax credits. Here's a breakdown of the advantages that come with paying yourself wages. Reduce Corporate Taxes  When you pay yourself wages out of your company, you can claim a deduction against your company's income.  For example, if you have $95,000 net profit in your company, and you decide to pay yourself $25,000 in wages, your company's income is reduced to [...]

By | February 1st, 2020|Taxes|Comments Off on The Benefits of Paying Wages

Using Xero’s Cash Coding Feature to Save Time on Your Bookkeeping

Innovations in cloud accounting have made bookkeeping a breeze. At Virtual Heights Accounting, our favourite accounting app is Xero. You can do everything from invoicing to producing professional financial reports. It’s also easy to keep your records current.   Not only can you link your business bank account to Xero, but you can also do a number of additional things in Xero that further speed up the bookkeeping process. One of those tweaks is using cash coding.  What is Xero’s cash coding? The cash coding feature in Xero allows you to process bookkeeping transactions in bulk. The screen is more compressed than [...]

By | January 18th, 2020|Accounting, Xero|Comments Off on Using Xero’s Cash Coding Feature to Save Time on Your Bookkeeping

Why Do I Have to Pay Instalments and What Happens if I Don’t?

The requirement for corporations to pay corporate tax instalments is the same as when individual taxpayers have income tax deducted from their paycheque every payday. Just like tax payments sent in on behalf of taxpayers by their employers act like a credit against the amount of tax owing at the end of the year, instalments made by corporations reduce their tax bill when they file their tax return.  What are instalments? Instalments are tax payments you pay before filing your tax return. Even if your company doesn’t meet the requirement to pay instalments, you can do so voluntarily to avoid a [...]

By | December 18th, 2019|Business, Taxes|Comments Off on Why Do I Have to Pay Instalments and What Happens if I Don’t?

Why have I been asked to fill out a W-8 BEN-E form?

If you are Canadian Company providing services to US Companies that has been asked to fill out a W-8 BEN-E form you may be wondering why. You may also be wondering how to complete it. This article walks an active business and Canadian corporation in Canada offering consulting services to a US company on completing this form. This is only relevant to non-financial entities such as a management consultant. What is it? The W-8 BEN-E form is provided by the IRS (the US Federal Tax Agency similar to the Canada Revenue Agency). It is used by foreign entities to document their [...]

By | November 29th, 2019|Uncategorized|Comments Off on Why have I been asked to fill out a W-8 BEN-E form?