Understanding the Risk of a Personal Services Business

By | November 18th, 2020|Accounting, Taxes|

It's important to consider the risk of a Personal Services Business (PSB). If the Canada Revenue Agency (CRA) declares your corporation a PSB, you could lose most of your tax deductions. Worse, you may be on the hook for a large tax bill to make up for tax deductions claimed in previous years. What is a Personal Services Business? The CRA considers a business to be a PSB when it exists to provide services to another entity (person, partnership, corporation, etc.) that an officer or employee of that entity would normally perform—essentially an incorporated employee.  To ensure your company stays on [...]

What You Need to Know About 2020 T4 Preparation

By | November 10th, 2020|Accounting, Taxes|

Due to the Covid-19 pandemic, employment income reporting on 2020 T4 slips will be a bit different in 2020. To validate Covid-19 benefits claimed by taxpayers, the Canada Revenue Agency (CRA) is turning to employers for help. When to File 2020 T4 Slips As a reminder, the T4 slip must be completed if you withheld payroll deductions such as Canada Pension Plan, Employment Insurance, Provincial Parental Insurance Plan, or income tax from an employee's pay. Any employee paid more than $500 during the year will also require a T4 slip. Employment income is reported during the year it was paid, not [...]

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Essential Accounting and Finance Tasks . . .

By | October 25th, 2020|Accounting, Business, Taxes|

And when to do them. When it comes to making sure your business is running smoothly, there are a number of essential accounting and finance tasks you don't want to miss. If you haven’t already done so, consider adding these tasks to a checklist or system to make sure they don't get forgotten. While there are many accounting and finance tasks to be done on a regular basis, today, we're highlighting essential tasks you can complete weekly, monthly, and annually to keep your business healthy and growing. Weekly Accounting and Finance Tasks Although these tests are labelled as “weekly,” some of [...]

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How to Rock Your Annual Accounting Review

By | October 10th, 2020|Accounting, Business Coaching|

First of all, at Virtual Heights Accounting, we recommend your accounting review be more often than annually. A bi-annual check-in is much more efficient. Reviewing your business tax and accounting records at mid-year, gives you time to see how your year is going and plan for any changes, such as paying more tax than the previous year.  If you’ve never had an annual or bi-annual accounting review, there are many advantages to doing so, especially if you’re considering changes in your business.  What is an Annual or Bi-Annual Accounting Review? An accounting review—whether it's annual, biannual, or something else—is where you [...]

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Xero Shortcuts You Need to Try

By | September 26th, 2020|Accounting, Xero|

If you’ve read any of our other posts about Xero, you're probably aware of the time you can save a by linking your bank account to the app. But there are a number of Xero shortcuts that offer even more time savings.  Try some of these common Xero shortcuts to reduce your bookkeeping time so you can get back to the part of your business you enjoy the most. Xero Shortcuts for Bookkeeping  Bank Rules Bank rules allow you to set parameters on money spent, money received, and transfers. Once a bank rule is set up, Xero will recognize the rule, [...]

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How to Ask Your Accountant a Question in Xero

By | September 22nd, 2020|Accounting, Xero|

Have you ever wondered how to ask your accountant a question in Xero? If you’re new to Xero, you might have questions as you get started using this amazing cloud accounting app. Even if you’re not new to Xero, you may come across something in your bookkeeping you haven’t seen before or aren’t sure how to properly record. Thankfully, Xero makes it really easy to ask your accountant a question without leaving the app, saving you precious time. But before you can start asking your accountant questions in Xero, you’ll need to make sure your accountant has access to your Xero [...]

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Common KPIs and How to Monitor Them in Xero

By | September 10th, 2020|Accounting, Business, Xero|

Common KPIs (key performance indicators) are whatever numbers you determine are critical to your business’s success. They can vary depending on your industry and how you run your business. An online marketing company isn’t going to have the same KPIs as an automobile manufacturer.  Choosing the right KPIs can be tricky. Start by looking at your financials. Are there any numbers that jump out at you as being way too high or low? If so, you’ll want to keep an eye on those.  Do you notice any trends when comparing the same numbers over different time periods? This is something else [...]

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Lesser Known Xero Features You Need to Check Out

By | August 27th, 2020|Accounting, Business, Technology, Xero|

Xero is truly a time-saving accounting app. Most Xero users are aware of the ability to link Xero to their business bank and credit card accounts to speed up bookkeeping, but there are a number of other time-saving features included in Xero.  Here are some of the lesser known Xero features you need to check out to make the most of this accounting app. Items Items can save you a ton of time when invoicing customers by creating a list of the services and products you offer. Under the “Business” tab select “Products and services.” Click the button on the left [...]

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Grow Your Business with Xero

By | August 20th, 2020|Accounting, Business, Xero|

What in the world is Xero and how can you grow your business with it?  Xero is an accounting app that can save you time and money. With Xero, you are able to link your bank accounts and credit cards to the app, so your business transactions are automatically downloaded to Xero. Why Grow Your Business with Xero? Because Xero saves you time and money with your bookkeeping, you can focus on the key activities that will help you grow your business. Instead of spending hours sorting and recording receipts, you can touch base with your customers and find out what [...]

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Get Paid Fast with Xero Mobile Payments

By | July 30th, 2020|Accounting, Business, Xero|

Being a business owner sometimes means doing things you don’t enjoy like making “The Call.” You know, the one that starts with idle chit chat and quickly leads to, “So, any chance you’ll be paying your invoice in the next week?” Nobody likes having to hunt down customers who haven’t paid. Avoid having to make The Call with Xero mobile payments. What are Xero Mobile Payments? Xero mobile payments use Xero invoicing together with Stripe and/or PayPal integrations so you can accept debit card, credit card, and pre-authorized debit payments directly in Xero. Instal the Xero app on your cell phone, [...]

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