Understanding Capital Assets Vs Expenses

By |2023-06-30T14:18:35+00:00September 21st, 2023|Uncategorized|

Small business owners in Canada face a lot of challenges, and taking care of finances is among the top priorities. Understanding the difference between capital assets vs expenses is important for both tax purposes and for making decisions about your business. Why? You ask. Well, let's start with what capital assets are. What is a Capital Asset Capital assets (also often called Property, plant and equipment in Canada) are long-term assets that are critical for business operations. These assets are typically expensive (over $500) and have a useful life of more than one year. Examples of capital assets include buildings, equipment, [...]

Managing cash flow in your small business

By |2023-02-05T16:54:05+00:00February 16th, 2023|Uncategorized|

Cash flow is critical to the success of any business, big or small. As a small business owner, tracking cash flow is essential to ensure that you have enough money to pay bills, invest in growth, and prepare for unexpected expenses. Here are some tips to help you track your cash flow and why it’s important. 1. Monitor your income and expenses regularly Keeping a close eye on your income and expenses is key to understanding your cash flow. This means tracking all the money coming in and going out of your business on a regular basis. You can use tools [...]

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Auditing Your Small Business Financials: What You Need to Know

By |2022-12-28T03:58:47+00:00December 28th, 2022|Uncategorized|

As a small business owner, it’s important to know how to audit your own financial records. We don't mean "audit" in the Canada Revenue Agency (CRA) sense. We mean taking a good look at your numbers. That's really all CRA is doing when they audit your tax information anyway. Knowing how to properly audit and assess your business finances is essential for successful budgeting and forecasting. In this blog, we’ll go over some of the basics of auditing your business financials and discuss why it’s so important. Let’s dive in!  Why Audit Your Business Financial Records?  Auditing your business financial records [...]

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How to Import Missing Bank Feed Statement Lines in Xero

By |2022-12-24T03:22:31+00:00December 24th, 2022|Uncategorized|

You’re looking at your bank balance in Xero, and for some reason it doesn’t match your bank statement. How is this possible? Once a bank feed is set up, Xero is supposed to import all your transactions, isn’t it?  Xero is an amazing accounting app, but sometimes random things happen, and the app doesn’t import all the line items from your bank statement like it should. At Virtual Heights Accounting, we recommend you compare your Xero bank balance to your bank statement at least monthly so you can easily stay on top of these types of occurrences. What are bank feeds? [...]

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How to fill out a W-8 BEN-E Form?

By |2023-05-02T14:42:45+00:00November 9th, 2022|Uncategorized|

If you own a Canadian company providing services to US Companies, you may have been asked to fill out a W-8 BEN-E form. What is the W-8 BEN-E form and why do you need to complete it? In this article, we'll answer these questions and show you how an active business and Canadian corporation in Canada offering consulting services to a US company would complete this form. This is only relevant for non-financial entities such as management consultants. What is the W-8 BEN-E Form? The W-8 BEN-E form is provided by the Internal Revenue Service (IRS), a federal tax agency similar [...]

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How to Add Conversion Balances in Xero

By |2022-09-30T20:27:09+00:00September 30th, 2022|Uncategorized|

So you’ve decided you’re going to use Xero to record all of your business transactions. Adding conversion balances is an important part of getting started with Xero. However, if you’ve just started your business and you have not done any bookkeeping yet, you don’t need to worry about conversion balances.  What are conversion balances? These are the balances on your trial balance at the date you convert from another accounting app or software program to Xero. It’s important that these are accurate so your books and records can continue on from where you left off. Entering Conversion Balances  In order to [...]

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How to Reconcile Your Bank Account Using the Xero Accounting App

By |2022-09-26T15:02:46+00:00September 26th, 2022|Uncategorized|

If you're using the Xero accounting app to manage your finances, then you'll need to know how to reconcile your bank account. This process ensures that the transactions in your bank account are accurately reflected in Xero. In this blog post and accompanying YouTube video, we will walk you through the steps of reconciling your bank account in Xero. Confirm Bank Statement Transactions From within the bank account you want to reconcile, go to the bank statements tab. Check to make sure the unreconciled transactions that have been imported are from your current statement. While in this screen, you can also [...]

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How to Do Your Own Bookkeeping – Part 1

By |2022-03-04T01:03:08+00:00February 9th, 2022|Uncategorized|

Have you ever wondered about how to do your own bookkeeping? Understanding how to do this yourself can be a valuable skill if you’re a solopreneur or if you are interested in saving money on business expenses. Before we get into how to do your own bookkeeping, there are a few terms and concepts you must be familiar with. The Foundation of Bookkeeping - Double-Entry Accounting Double-entry accounting is a method of recording transactions that requires every bookkeeping entry to have an opposite transaction. This method of accounting ensures your books and records are always balanced.  Having accounts that are in [...]

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How to Get Financial Help for Your Business

By |2021-10-24T09:53:00+00:00March 9th, 2021|Uncategorized|

Starting and running a business can be challenging financially if you don’t have the savings you need or don't know where to look for financial help. Thankfully, there are a number of initiatives specifically for Canadian businesses to help you get off the ground or keep your business going during difficult times. 4 Places You Can Get Financial Help for Your Business It can be hard to know where to look for financing for your business thanks to numerous online scams. Here are four legitimate sites you can check to see if your business qualifies for any of their funding or [...]

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Why have I been asked to fill out a W-8 BEN-E form?

By |2021-10-24T09:53:15+00:00November 29th, 2019|Uncategorized|

If you are Canadian Company providing services to US Companies that has been asked to fill out a W-8 BEN-E form you may be wondering why. You may also be wondering how to complete it. This article walks an active business and Canadian corporation in Canada offering consulting services to a US company on completing this form. This is only relevant to non-financial entities such as a management consultant. What is it? The W-8 BEN-E form is provided by the IRS (the US Federal Tax Agency similar to the Canada Revenue Agency). It is used by foreign entities to document their [...]

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