Understanding the Difference Between Spend Money and Bills in Xero

By |2022-11-30T23:14:57+00:00November 30th, 2022|Accounting, Xero|

As a small business owner, it’s important to keep track of your expenses and pay all your bills on time. One of the most popular accounting apps for small businesses is Xero. This app offers two features—Spend Money and Bills—to help you manage your finances. But what is the difference between these two features? Let’s break them down so you can make sure you are using them correctly.  Spend Money  The Spend Money feature allows you to enter individual transactions into your Xero account. This feature lets you quickly enter expenses that do not need a bill or invoice. For example, [...]

Where did all the Volunteers go?

By |2022-11-23T18:51:23+00:00November 23rd, 2022|Not for profit|

“I hope we get some new faces at the Annual General Meeting to fill some of these open positions.” Have you ever heard that or said it? It is unfortunately common with not-for-profit and community organizations of all types. This is true whether you’re a larger economic not-for-profit organization or a regional softball association. Where did all the volunteers go? (And how can we bring them back) I have heard numerous explanations and they all make logical sense. The basic answer from various articles and research I have done: In the past, there was more volunteer time in the home. This [...]

Should I Charge GST/HST on My Remote Work?

By |2022-11-17T04:41:56+00:00November 17th, 2022|Accounting, Taxes|

We work with a lot of consultants, and we find this question coming up a lot: “Do I need to charge GST/HST on the services I perform for clients in another country?” Usually, they are referring to clients in the US. The simple answer is no! Place of Supply In Canada, the Canada Revenue Agency (CRA) deems the place of supply for services to be the location where your client is based. This holds true even if you perform the work remotely from your office in Canada. However, there are some exemptions to the place of supply rules. Whether the exceptions [...]

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3 Common Financial Mistakes Small Business Owners Make (and How to Avoid Them)

By |2022-10-28T04:04:29+00:00October 28th, 2022|Accounting, Business|

Being a small business owner is tough enough without having to worry about money troubles. Unfortunately, financial difficulties are all too common for small businesses—but they don't have to be. In this blog post, we'll discuss three of the most common financial mistakes small business owners make and what you can do to avoid them. Mistake #1: Not Keeping Track of Expenses One of the most common financial mistakes small business owners make is not keeping track of their expenses. It's easy to let expenses get away from you when you're busy running your business, but it's important to keep a [...]

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The Many Benefits of Working With a Virtual Accountant

By |2022-10-15T16:43:32+00:00October 15th, 2022|Accounting, Technology|

For small business owners, keeping on top of their finances can be a full-time job in and of itself. That's where virtual accounting services come in. Virtual accountants can handle all of the nitty-gritty financial details of your business so you can focus on growing your company. Here are just a few of the many benefits of using a virtual accountant. Virtual Meetings With a virtual accountant, you can hold meetings online or over the phone instead of in person. This can be a huge time-saver, especially if you have clients or employees who are located in different cities or provinces. [...]

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Dividends or Wages: Which is Better?

By |2022-09-12T03:40:04+00:00September 12th, 2022|Accounting, Taxes|

Did you know the tax treatment of dividends and shareholder wages differs? In Canada, dividends are considered investment income, whereas wages are employment income and subject to payroll taxes. There are advantages and disadvantages to both. In this blog post, we'll explore the differences between dividends and wages, and help you decide which is better for you. Dividends are payments made to shareholders of a company out of its profits. The amount you receive depends on the number of shares you own. Wages, as you are probably already aware, are payments made to employees for their work. As a shareholder, you [...]

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What are Eligible and Non-Eligible Dividends?

By |2022-08-28T23:27:10+00:00August 29th, 2022|Accounting, Taxes|

When it comes to dividends, there are two main types: eligible and non-eligible. Eligible dividends are those that meet specific criteria in the Canadian Income Tax Act (ITA). To the contrary, non-eligible dividends do not meet those criteria. This can be confusing for business owners and investors. Let's take a closer look at what makes a dividend eligible or not. Eligible Dividends Eligible dividends are paid by a corporation to its shareholders from its "general rate income pool" (GRIP). To be considered part of the GRIP, earnings must come from business activities in Canada. Usually these dividends are paid by public [...]

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What is a Shareholder Loan?

By |2022-08-20T22:36:18+00:00August 15th, 2022|Accounting, Taxes|

If you have a company, you may have heard the term shareholder loan. You may even know the current balance of what your company owes you. If you have no idea what a shareholder loan is or whether you have one, that’s okay. In this post, we’ll explain what a shareholder loan is and why the money you withdraw from it isn’t always tax free. What is a shareholder loan? A shareholder loan is, simply put, a loan that a shareholder makes to their corporation. The Canada Revenue Agency (CRA) doesn’t consider this money as income for the corporation, so there’s [...]

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The Business Accountant: Can They Help You Manage Your Money?

By |2022-08-15T20:05:09+00:00August 8th, 2022|Accounting, Business|

Every business owner knows that cash flow is key to a successful company. But keeping track of your finances can be daunting, especially if you're not familiar with accounting terms and concepts. That's where a business accountant comes in. They can help you manage your money and keep your business on track financially. In this blog post, we'll discuss the benefits of working with a business accountant and how they can help you manage your cash flow. What is cash flow? Cash flow is the movement of money in and out of your business. It's important to track your cash flow [...]

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No-Code Accounting: What It Is and Why You Should Use It

By |2022-08-16T15:25:00+00:00July 20th, 2022|Accounting, Business, Technology|

No-code accounting is a term that you may have heard floating around the internet lately. But what does this mean? Simply put, no-code accounting is an approach to accounting that doesn't require any coding skills.  You may be thinking, but I have never had to know how to code when bookkeeping before. You are right, individual software does not require coding. The term "no-code" refers to building connections between apps that are not already connected.  This can be a huge advantage for small business owners who don't have time to learn how to code or don't want to spend the money [...]

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