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

By | June 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 | May 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 | May 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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Corporate Tax Planning for Your Business

By | March 19th, 2021|Business, Taxes|

Once your business is incorporated, it is a separate entity for tax purposes. This means extra paperwork for you and your accountant. It also means more opportunities as far as corporate tax planning is concerned.  Paying yourself a wage rather than living off the profits of your business like you do when you’re a proprietor is one of the opportunities available when your business is incorporated. But how do you know how much to pay yourself or even if you should? That’s where strategizing and tax planning comes in. What is corporate tax planning? Corporate tax planning is developing strategies that [...]

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Do You Need to Issue a T2200?

By | February 5th, 2021|Accounting, Taxes|

Have you heard the news about the special opportunity for employees working from home to claim home office expenses this year? As an employer, it’s important you know about these updates. You may need to help your employees by issuing a T2200, if necessary. A T2200, Declarations of Conditions of Employment, is a form that employers usually fill out so employees can claim certain out of pocket expenses. However, given the major move to work-from-home status due to the COVID-19 pandemic, the Canada Revenue Agency (CRA) is simplifying things for employers and employees for the 2020 taxation year.  T2200 Highlights for [...]

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Employee vs Contractor: What’s the Difference

By | December 11th, 2020|Business, Taxes|

The question of whether someone who works for you is an employee or a contractor is an important one. It’s the difference between someone being your employee or being self-employed. If handled incorrectly, there can be penalties for you as a business owner, as well as the worker.  The Canada Revenue Agency (CRA) provides a very detailed guide on the question: employee vs contractor. We break down the key things you need to consider below. Employee vs Contractor You might be wondering what difference it makes. Employee vs contractor, so what? The main concern is a person’s eligibility for employee benefits [...]

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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 [...]

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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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Top Questions Small Business Owners Ask

By | August 13th, 2020|Business, Taxes, Xero|

So, you’ve started a business—congratulations! You’re probably excited to set up shop and get your product or service out there, but . . . there are a lot of things to think about when you first start a business. It's easy to jump right in without giving it much thought, but some things are better considered when you’re just getting started.  Here are some of the top questions small business owners ask. Should I incorporate? When considering incorporation there are two main types of things to consider. You’ll want to think about the legal side as well as how incorporating can [...]

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