What is SRED and How Do I Track It?

By |2022-05-06T18:04:34+00:00April 27th, 2022|Taxes|

Have you ever heard the term SRED and wondered what it was all about? The Canadian government provides tax-reducing incentives to companies conducting qualifying Scientific Research and Experimental Development (SRED) work. It is important to understand the various tax credits available to support SRED work, so that you may take advantage of them. These tax credits are often overlooked. Businesses don’t know they exist or they don’t realize they qualify for them. The Canada Revenue Agency (CRA) has made a number of changes in recent years. One of these changes was to the SRED program. The SRED program allows businesses to [...]

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What is a Virtual Accountant?

By |2022-04-02T02:04:37+00:00April 2nd, 2022|Accounting, Business, Taxes|

The short answer is, a virtual accountant is the same as any other accountant. Accountants choose to work virtually due to a variety of reasons. Here at Virtual Heights Accounting, we see the value of technology to save time and money, so we’ve been one-hundred percent virtual since day one.  There are many types of accountants. Some work in public practice at an accounting firm. Others work for companies as controllers, CFOs, or any number of aptly named positions. The lingo for this type of accountant is one who works in industry. The main difference between public practice and industry is [...]

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Do I Need a Corporate Lawyer?

By |2021-11-27T19:58:31+00:00November 27th, 2021|Business, Taxes|

Unless you are a lawyer yourself and understand corporate law, then yes, you need a corporate lawyer. A main advantage to incorporating your business is the corporate structure. You need someone who understands how this works. While there are many legal documents you can file yourself, incorporation documents should be handled properly by a lawyer. What does a corporate lawyer do? When we say you need a corporate lawyer, we don’t mean you need a lawyer on staff. While that may be the best option for some companies, most businesses only need a lawyer periodically.  One of the first things a [...]

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What is HST?

By |2021-11-20T02:53:35+00:00November 20th, 2021|Business, Taxes|

As a business owner, you are likely familiar with GST, but what about HST? And is it something you need to worry about? The answer to this question depends on where you are doing business and whether or not you ship products to other provinces. The most common place you see a reference to HST is on the form you need to file with the Canada Revenue Agency (CRA) reporting your GST for the period. The same form is used to report HST and the official name of the form is the “Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return.” Each [...]

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GST Basics

By |2021-11-03T02:40:31+00:00November 3rd, 2021|Business, Taxes|

When it comes to goods and services tax (GST) basics, one of the most common questions new business owners want to know is whether they need to charge GST. As with most tax questions, the answer depends on a number of things.  It’s important to note that GST is collected on behalf of the government via the Canada Revenue Agency (CRA). The GST you collect is not yours to keep. As consolation, the CRA allows you to claim the GST you pay in the course of business activities as a form of payment to you for collecting the GST on their [...]

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GST: Exempt vs Taxable Supplies

By |2021-10-24T09:52:58+00:00October 10th, 2021|Business, Taxes|

When you’re first setting up your business, one of the things you might ask is if you need to charge GST. Chances are you don’t have time to sift through the Canada Revenue Agency’s massive guide for GST registrants to find the answer. You’re in luck, because this month on the blog, we’re answering some of the most common GST questions we get.  When it comes to determining if you need to charge GST, you need to decide if you’re providing a taxable supply. Supply is the language used in the Income Tax Act to refer to what you’re selling. This [...]

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Have You Thought About Selling Your Business?

By |2021-10-24T09:52:59+00:00September 29th, 2021|Accounting, Business, Taxes|

Now that you’ve completed a checkup on your business, if you’re close to retirement age or just looking for a change, you may want to consider selling your business. Depending on your business, selling could earn you a nice lump sum of cash.  Among the top reasons business owners don’t sell are that they didn’t know they could or it seemed too confusing. It may be confusing, and sometimes it can be a lot of work to sell your business, but depending on your goals, it can also be worth it. Read on to learn more about selling your business.  Before [...]

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Year End Questions: Why Does My Accountant Ask so Many?

By |2021-10-24T09:52:59+00:00June 8th, 2021|Accounting, Business, Taxes|

If you’re new to working with an accountant, it can feel a bit off-putting to have to answer so many business year end questions. However, without asking all these questions, your accountant can’t do their job properly and in compliance with industry standards.  Frustrations around answering questions can be eliminated by understanding why your accountant is asking these questions. Once you understand why your accountant is asking all these questions, you will also be more prepared for meetings. Below, we discuss some of the questions your accountant may ask you and why. Initial Consult Just like when you meet anyone for [...]

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2021 Federal Budget Implications for Corporate Tax

By |2021-10-24T09:52:59+00:00May 22nd, 2021|Business, Taxes|

The Canadian government introduced the 2021 Federal Budget in April. This year’s focus is on ending the fight against COVID-19 and ensuring economic recovery by creating jobs and growth in Canada. Business related budget themes include job creation, small businesses, and growth.  What does this mean for you as a business owner? Here are some budget highlights worth considering as they relate to you and your business.  Immediate Expensing of Certain Property Canadian-Controlled Private Corporations can now expense certain eligible capital property. In the past, capital property was expensed over the useful life of the asset, allowing only a portion of [...]

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All You Need to Know About the GST Quick Method

By |2021-05-12T23:18:12+00:00May 12th, 2021|Accounting, Business, Taxes|

Have you heard of the GST Quick Method? It’s a faster way to calculate the amount of GST or HST you owe the Canada Revenue Agency (CRA). Of course, it comes with a catch—a few, actually. You can only use this method to calculate your GST owing if you meet the CRA’s criteria. Read on to learn more about the GST Quick Method and if it’s right for you and your business. What is the GST Quick Method? The CRA implemented the quick method of accounting for GST/HST to help small businesses reduce paperwork. Rather than having to report every dollar [...]

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