2 Ways Rising Interest Rates Impact Small Businesses – and How to Prepare!
Inflation globally and in Canada continues to rise, largely driven by higher prices for energy and food. Central banks around the world are increasing rates to combat this high inflation. In Canada, the central bank increased its target rate for the overnight rate to 1½% on June 1, 2022 and it’s expected that this will […]
How Small Business Owners Can Fight Inflation (without Raising Prices!)
Open a news site right now and chances are there will be one if not several headlines concerning inflation woes. In fact, according to survey conducted for Chartered Professional Accountants of Canada (cpacanada.ca) earlier this Spring, inflation and supply chain concerns are the top two challenges to the growth of the Canadian economy according to […]
Key Highlights from the 2022 Federal Budget
The federal budget was released on April 7, 2022. While there were no changes to personal or corporate tax rates, the budget contained several key items of interest, including tax and small business implications. Some key highlights: Canada Recovery Dividend The budget introduces the one-time Canada Recovery Dividend (CRD) and a 15% tax on bank […]
What Might Save or Cost You Money from the Federal 2021 Fall Economic Statement
On December 14, 2021 the federal government released its Fall Economic Statement which slot gacor outlined the expected path to economic recovery, and also billions of dollars more in spending. Some of the measures proposed may impact your personal or corporate tax filings next year. Key Personal Tax Highlights: Enhanced Home Office Expense Deduction To […]
Key Highlights from Ontario’s Fall Economic Statement
Ontario has Released the 2021 Fall Economic Statement On November 4, 2021, the Province released the 2021 Ontario Economic Outlook and Fiscal Review: Build Ontario. The Fall statement usually focuses on a mid-year look as to how the Province is faring compared to what it laid out in the Spring Budget. This year, the government has included […]
5 Common Reasons the CRA may Audit You
Imagine this scenario: You’ve spent time and money putting together your tax return and are eagerly awaiting your notice of assessment so you can finally put the previous tax year to bed and focus on moving ahead. However, you receive that dreaded notification that you are the subject of a Canada Revenue Agency (CRA) audit. […]
Should I Pay Myself a Salary or Dividends?
One of the common questions we hear from our business owner clients is how they should structure their business to maximize their profits and minimize their tax obligation. If you own a business through a corporation, you have the choice to pay yourself a salary or dividends (or a combination of both). Salary […]
Need to Hire More Workers? Details of the Proposed Canada Recovery Hiring Program Announced
The proposed Canada Recovery Hiring Program has been designed to help businesses who have been hit hardest by COVID-19 hire the workers they need. The program would provide a subsidy of up to 50 per cent of eligible salary or wages for employers who have experienced qualifying revenue declines. Support would be available retroactively from […]
Mitigating your Risk Exposure through Proper Insurance Planning
There is much we can learn from listening to other people’s stories, exploring professions and paths different than our own. This post is the next in a series of spotlights on entrepreneurship and small businesses. This month we spoke with David Miklas, an Insurance Advisor at Stewart Financial, and learned the importance of proper financial […]
Set Yourself Up Now to Save Money Next Tax Season
So you’ve just completed your 2020 tax filing – congrats! While it may be tempting to put away the endless receipts and slips and not think about taxes for another year, don’t do it! While the deck may be stacked against small businesses, there are still many tax breaks available to keep hard-earned money in […]
How can I best claim home office expenses during COVID-19?
Zoom, Google Hangouts, and Microsoft Teams became the default office for many of us during 2020. While working from home was an option for some businesses prior to COVID-19, the pandemic accelerated the use of digital platforms as the main source of business communication. One of the impacts of this change in business practice is […]
An Education on Tax Write Offs for the Town of Schitt’s Creek
Is the heart of Schitt’s Creek watching the Rose Family discover the true value of family or is its true message learned by watching them comically perform the do’s and don’ts of business and entrepreneurship? It was a rocky start for the Rose children as they were forced to make their own way in the […]
Support is on its way! – Canada’s COVID-19 Economic Response Plan (PART 2)
A Letter to Small Business Owners: Hope that you are all keeping well and safe as we progress through this crisis. We wanted to reach out to you again because you likely would have seen some of the Federal government’s announcements over the past few days as it attempts to bolster its Economic Response Plan for […]
Support is on its way! – Canada’s COVID-19 Economic Response Plan
A Letter to Small Business Owners: Hope that you are all doing well in spite of this COVID-19 crisis. What a situation this is… We just wanted to take a moment to let you know that we continue to be fully operational and are ready to assist you with any of your tax/accounting needs. We […]
Even Royals Can’t Escape the CRA!
The news of Prince Harry and Meghan Markle deciding to split their time between the UK and Canada has certainly been making headlines this month. And while the royal couple have their hands full with their move, it’ll be very important for them to set themselves up for success come tax season, should they become […]
Don’t Sprint – It’s a Marathon!
Be organized and take your year-end statements one step at a time Just like the T2 corporate tax return you might think that your business’ “Year End Financial Statements” are a one-time task to be completed at the end of every year; however, running a business and fulfilling your legal obligations of keeping records comes […]
The Trap of One
Becoming too reliant on one employee, one vendor, one customer, or one marketing avenue is a common pitfall of businesses. Consider the lesser risk of having 100 customers paying $1,000 each than one customer paying $100,000. The same rule applies to employees, vendors, and the number of ways to attract new customers. In business, diversity […]
Driving your Costs Down
If you have one of the more than 25 million road motor vehicles registered in Canada, then you should make sure your car is driving your costs down. Deducting automobile costs is a very important part of tax planning for many small businesses, one that comes with many rules and restrictions. Generally, any expense incurred […]
Pick Up that Fork
Writing Off Eligible Meal and Entertainment Costs A common expense business owners may be able to write-off are a portion of meals and entertainment costs. It’s an important tool to make sure you are minimizing your tax obligation. However, it can also be disastrous to get wrong (hello unexpected tax bill and penalties!) Always work […]
How to Choose the Right Accounting Firm
A compatible accounting firm is integral to a business’s success. The truth is that accountants, CPAs, and tax preparers are not all the same. Most accountants spend the majority of their time with their clients’ monthly bookkeeping work, tax filings, and mundane compliance work – all of which take time away from paying attention to […]
The Most Profitable Clients You will Ever Access
You can spend hours of time cold-calling, or thousands of dollars on advertising, all to end up disappointed with no new customers. Your time and budgets are stretched already, and you may be thinking, “There must be a better way”! While cold calling and wide-spread advertising certainly have their benefits, my preferred method for gaining […]
Ask the Accountant: My company is worth a lot of money! So why am I running out of cash?
In approaching business, people generally think in profits instead of cash. When imagining a new business, an owner thinks of the cost to promote the service, the fee you could charge, and what the profits per unit might be. They think of a business as sales minus costs and expenses—that is, profit. Unfortunately, profits are […]
The 2 Sets of Numbers Every Business Owner Must Know
Tracking the critical numbers and indicators in your business is one of the best, and most important things you can do as a business owner. What is not measured cannot be improved, but in keeping a financial dashboard that tracks core figures, you can carve a niche for your business that fosters a competitive advantage. […]
How Systemizing can Reduce your Stress
One of the most important things a business owner can do is systemize operations for the long-term, considering how things might function in the owner’s absence. Ensuring that your business operates like a finely tuned machine will increase your stability and reduce your stress! First you need to answer the question: what are the systems […]
Gross versus Net Income
In business, where gross refers to the total income, net refers to income after all expenses, overheads, taxes, and interest payments are deducted. The difference in value between these two amounts can be significant. As the head of your business, it is important for you to know: The difference between your gross and net income; […]
What is income splitting and how do I use it to maximize returns?
One of the keys to tax planning in Canada is the concept of income splitting. This is the process of maximizing income taxed at lower rates and minimizing income taxed at higher rates. While the federal government has already eliminated some forms of income splitting, and is currently exploring actions to further limit this, there […]
5 Things Small Businesses Can Do Now To Save Money Come Tax Season
As the old saying goes, there are only two sure things in life: death and taxes. For many small businesses, this has become more of a reality than ever. The federal government has recently proposed changes to the tax code which are sure to negatively affect many corporations. In fact, these changes could even result […]
Daily, Weekly, Monthly: What to do to Maintain Accounting Records for Your Small Business, and Rake in the Benefits!
Often the most time consuming and stressful part of running a small business is the process of keeping clear and accurate financial records. Even those who manage to keep their books organized can find it challenging to use them strategically in their business decision-making. As a result, many small business owners simply throw all of […]
Setting up an Effective Accounting System
Every business needs an effective accounting system. Many business owners overlook the logical method of tracking their revenues and expenses by “profit centers.” A financial reporting system should be set up such that it has the ability to generate reports that provide a breakdown of revenues and expenses by type of service provided or type […]