Your Guide to Sales Taxes in Canada

By | June 14th, 2020|Accounting, Business, Taxes|

When you first start your business, you have no way of knowing the things you don't know. So it makes it easy to miss things. One thing that is commonly missed (or done incorrectly) by new business owners is sales taxes. Either business owners don't realize they should be charging sales tax, or they aren’t doing it correctly. If this is you, don’t worry! There are volumes and volumes of information written by federal and provincial governments about our sales taxes in Canada. They can get extremely complicated, and we recommend you consult with a professional who understands your business and [...]

Comments Off on Your Guide to Sales Taxes in Canada

Why You Should See Your Accountant More Than Once a Year

By | May 27th, 2020|Accounting, Business, Taxes|

It’s important to see your accountant more than once a year—during tax season. The health of your business could depend on it. Accountants help with so much more than filing your taxes, yet businesses rarely seem to take advantage of this. Not only will you have a better idea of how your business is doing financially, but when you have regular business checkups with your accountant, you also have the ability to make necessary changes to improve business processes, increase profit, and save tax.   There’s No Time Like the Present to See Your Accountant It’s really difficult to plan for tax [...]

Comments Off on Why You Should See Your Accountant More Than Once a Year

Need a Controller but Not Ready to Hire? Try Virtual Controllership

By | May 15th, 2020|Accounting, Business|

Just like we go through awkward stages as humans, as your business grows, it will go through awkward stages too. One of those stages is needing more staff but not yet having the cash flow to hire a full-time (or even part-time) employee to do the work.  While a good employee is well worth it, they can also be expensive. Not only will you pay them wages, but you’ll also pay the company portion of payroll deductions and benefits. In many cases, there’s also the extra time it takes to train someone. That’s where a virtual controller can help. They are [...]

Comments Off on Need a Controller but Not Ready to Hire? Try Virtual Controllership

Correcting Bookkeeping Errors in Xero

By | May 1st, 2020|Accounting, Xero|

Even Xero, one of our favourite accounting apps, makes mistakes sometimes. Because of this, it’s important to check your books, even if you’re using automatic bank feed downloads. There are many parts of the Xero bookkeeping process that are manual, so human error is still a possibility.  Because Xero uses live bank feeds, you can’t simply make a journal entry to the bank account to fix errors. Here are three ways to correct bookkeeping errors in Xero. The method you use will depend on what the error is.   Delete Sometimes Xero shows duplicate transactions coming from bank or credit card feeds. [...]

Comments Off on Correcting Bookkeeping Errors in Xero

Nix the Cash Bonus: Reward Your Employees While Reducing Your Tax Bill

By | April 23rd, 2020|Accounting, Business, Taxes|

Good employees can be hard to find. When you do find them, you want to keep them as long as possible. It can be tempting to pay a cash bonus to show your appreciation. Everybody loves cash. Accept accounts! Here’s why . . . What’s Wrong with a Cash Bonus? Of course accountants love cash too, but paying cash bonuses can make for a bookkeeping nightmare! When you pay employees with cash, there’s no paper trail. There’s no way to prove to the Canada Revenue Agency (CRA) that you incurred those expenses.  As much as you want to show your appreciation [...]

Comments Off on Nix the Cash Bonus: Reward Your Employees While Reducing Your Tax Bill

I’ve Linked My Bank Feed to Xero: Why Isn’t It Reconciled?

By | April 16th, 2020|Accounting, Xero|

One of the amazing time-saving features in Xero is the ability to connect your bank feed. This allows you to see the transactions from your bank account in Xero live in real time.  But what happens when you’ve connected your bank feed to Xero, and Xero is telling you that your bank account isn’t reconciled?  While accounting apps are designed to save you time, they aren’t designed to be completely automatic. They still require a human touch. There are three essential things you need to do when it comes to working with bank feeds in Xero. 1. Reconcile Your Bank Feed [...]

Comments Off on I’ve Linked My Bank Feed to Xero: Why Isn’t It Reconciled?

Inventory Tracking Matters

By | April 2nd, 2020|Accounting, Business, Technology|

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 [...]

Comments Off on Inventory Tracking Matters

COVID-19 and Taxes: Important Updates

By | March 23rd, 2020|Business, Not for profit, Taxes|

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 [...]

Comments Off on COVID-19 and Taxes: Important Updates

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

By | March 15th, 2020|Accounting, Business, Not for profit, Taxes|

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 [...]

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

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

By | January 18th, 2020|Accounting, Xero|

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 [...]

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