What We do
A successful business is one where records are kept meticulously, proficiently and professionally!
Let's Talk External!
One of the external reasons to keep quality records is to ensure a business complies with Canada Revenue Agency’s (CRA) requirements. Each year, CRA selects a number of businesses to be audited. A business could face serious financial consequences should it not be in compliance with laws and regulations with regard to recordkeeping and document retention.
WHAT are records?
According to CRA, records are organized accounting and financial documents that summarize transactions, which includes documents to support said transactions. Such documents include ledgers, journals, books, charts, table, financial statements, statement of accounts, income tax returns, excise tax returns, sales invoices, purchase receipts, vouchers, contracts, guarantees, bank deposit slips, bank statements, cancelled cheques, cash register slips, credit card receipts, work orders, delivery slips, working papers, logbooks, emails, and all correspondence that support transactions.
WHO has to keep records?
Persons who have to file a tax return; persons carrying on a business or engaged in commercial activity; persons who have to pay or collect taxes or other amounts, such as payroll deductions and softwood lumber products export charge; persons who have to file a good and services tax/harmonized sales tax (GST/HST) return; persons who apply for GST/HST refunds or rebates; trusts; non-profit organizations; registered agents of registered political parties; official agents of candidates in a federal election; universities; colleges; municipal corporations; hospitals; and school authorities.
HOW should my records look?
Your records should be reliable and complete. They should include the information needed to meet your tax obligations, to calculate your credits, and to be supported by documents. Records must be kept in English and/or French. And yes: they can be in digital format.
As a business owner, you must comply with CRA guidelines. By law, you are responsible for protecting your records – even if you hire a third-party to hold them for you and making your records and supporting documents available to the CRA upon request. The CRA may inspect, audit or examine records, processes and property. You are also responsible for ensuring that yourself, your employees, or your third-party record keeper is present when CRA officials examine said records at the address where they are kept. Furthermore, you must also ensure that your representative is cooperating with the examination by providing reasonable assistance and answering questions regarding your business, allowing CRA officials to make copies or providing copies of any records which may be required.
OVERWHELMED? Don’t be!
We are here to help! We will set-up, organize and maintain order in your books ensuring complicity with government laws and regulations. With our assistance, your focus can remain on your business!
Let’s Talk INTERNAL!
The ability to make informed management decisions is required for a successful business operation. To make such decisions, accurate financial health, a clear picture of income and expenses, is necessary. Our bookkeeping system will provide you with relevant, accurate and timely information on which to base business decisions.
WHERE do I start?
Start with us! We will collect the necessary information from you, which includes all source documents: receipts; bills; invoices; employee timesheets etc. We will process this information and report back to you regularly. Not only will we provide you with an overall financial health assessment, we will also break down your revenue and expenses on a client by client basis. This will allow for a clear picture of what is profitable, which will allow for renegotiation and adjustments.
Accounting & Tax services
Let's talk accounting
Chartered Professional Accountants (CPAs) are valued for their integrity and proven financial expertise. The CPA’s signature on a financial report means the CPA can provide reasonable assurance on the presentation of the organization’s financial position, performance and cash flows.
CANADIAN Financial Reporting Frameworks
The applicable financial reporting framework for financial statements is Canadian generally accepted accounting principles (GAAP), which are independent standards for use by Canadian organizations. These standards are set out in the Chartered Professional Accountants of Canada Handbook – Accounting, and have been approved by the Accounting Standards Board. Canadian GAAP includes several financial reporting frameworks, including International Financial Reporting Standards (IFRS® Standards), Canadian accounting standards for private enterprises (ASPE), Canadian accounting standards for not-for-profit organizations (ASNFPO), and Canadian accounting standards for pension plans.
WHAT Are Financial Statements?
Financial statements are a formal record of the financial activities of a business, person or other entity over a period of time and/or the financial position of a business, person or other entity at a point in time. For profit-oriented private entities financial statements normally include:
- balance sheet showing assets, liabilities and equity as at year end
- statement of income showing the results of operations for the year
- statement of retained earnings summarizing changes in retained earnings during the year
- statement of cash flows showing operating, investing, and financing activities and how these activities affect the cash position
WHO are the typical users of Financial Statements?
Financial statement users may come from different fields and areas of expertise. The types of user or stakeholder who may be relying on financial statements of your business can include:
- shareholders and other investors
- creditors and lenders
- government ministries and agencies
- general public
WHAT is Notice To Reader Financial Statements?
As a corporation’s manager or owner, it is important for you to understand the needs of the users of your entity’s financial information. As an owner of a small private corporation, most likely, you won’t need the extensive (and more expensive) financial statements containing all the disclosures normally required for an audit or a review. Therefore, your accountant (following a certain steps) can produce Notice to Reader financial statements that need not necessarily be in accordance with a financial reporting framework such as ASPE and instead may be prepared on another basis of accounting. Nevertheless, such statements may be appropriate for users such as banks or government agencies who are aware of the possible limitations of the statements.
Let’s Talk Taxes
Taxation is the main source of revenue for the government and is allocated to fund infrastructure and deliver services to the public. Taxes are used to redistribute income and wealth among taxpayers. Additionally, taxes may also be used by the government to achieve macroeconomic objectives (ie. control inflation, increase employment etc.)
WHAT is Income Tax?
Income taxes in Canada constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada. Tax collection agreements enable different governments to levy taxes through a single administration and collection agency. The federal government collects personal income taxes on behalf of all provinces and territories. It also collects corporate income taxes on behalf of all provinces and territories except Alberta. Canada’s federal income tax system is administered by the Canada Revenue Agency (CRA).
WHO Has to Pay Income Taxes in Canada?
There are three types of taxable entities in Canada: individuals, corporations and trusts. For income tax purposes, unincorporated businesses (ie. sole proprietorships and partnerships) are not viewed as taxable entities. The income earned by these organizations is taxed in the hands of the individual (human) owner. Under the Income Tax Act, all of the above mentioned entities are required to file income tax returns.
- Individual Return = T1
- Corporation Return = T2
- Trust Return = T3
WHAT is GST and HOW does it work?
GST is Goods and Services Tax was introduced to Canada on January 1st, 1991 by the federal government. The GST is a multi-stage transaction tax, where transactions are taxed at each level in the distribution chain. Using the specific rate, GST is applied to the value added by the business to goods and services, rather than to the gross revenue. Any entity engaged in commercial activity in Canada has to register to collect and remit GST, which includes individuals, corporations, partnerships, trusts, charities, societies, unions, associations, clubs and any other organizations.
WHAT is Payroll Tax and WHO has to remit it?
A major portion of the income taxes paid by individuals employed in Canada is collected by the government through source deductions. Under the Income Tax Act, employers should withhold an estimated amount for taxes from the gross salary paid to employees through payroll deductions. The tax withheld is based on employee’s income and must be remitted by the employer to the government on a regular basis. In addition to the income tax, employers are required to remit the Canada Pension Plan (CPP) contributions (employees and employer portions). There are severe penalties to employers for failure to withhold and/or remit the source deductions.
FEELING LOST? Don’t worry!
This is what we do! We will set up a system, tailored to your specific needs, to monitor all filing deadlines. We can assist with all government forms, payments and remittances. Focus on your business and we’ll take care of the rest!
Business Consulting Services
A successful business is one that creates value for its customers while differentiating itself from its competitors. Managers must match their knowledge of the opportunities and threats that exist in the marketplace with the resources and capabilities of their company.
WHAT is business planning?
Business planning is choosing goals, predicting results under various ways of achieving those goals, and then deciding how to attain the desired goals. In order to create value for its customers, managers and business owners have to make decisions, such as:
- Price for their products and services
- Cost of materials
- Cost of labour
- Overhead costs
In addition, often managers should make decisions, such as: buy assets versus lease them, or salary versus dividends for the business owners.
WHY Is Business Planning Important?
Business owners are doing business in order to make profit. Non-profit organizations should make enough money to ensure continuity of their operations. Survival of each organization, either for-profit or not-for-profit, is based on the ability of its owners and managers to identify threats, mitigate risks and allocate resources. Business managers, based on my experience, often overlook indirect or overhead costs. In reality every business, even the smallest one (one man operations) has overhead costs, such as telephone, vehicle, tools, supplies, etc. Not understanding these overhead costs and not adequately planning for them often lead to poor financial results and business failure. Adequate business planning helps owners and managers to understand direct and overhead costs and properly recover them from its customers while making a profit.
HOW to Plan in a long-run?
The starting point is to have an up-to-date business plan. A business plan is a written description of your business’s future, usually 3 – 5 years, and it describes what you are planning to do and how you are planning to achieve it. While there is no standard formula for preparing a business plan, it should be a concise and structured document containing some or all of the following points:
- Your unique selling point
- Market analysis
- Key competitive information
- Organizational structure
- HR requirements
- Premises and capital goods
- Key financial data
Business plans should be reviewed and revised, by management, on a regular basis (every 1 or 2 years), to ensure their relevance.
HOW To Plan in a short-term?
Budgets are one of the most widely used short-term (usually covering one fiscal year) tools for planning and controlling organizations. Budgeting systems turn managers’ perspectives forward. A forward-looking perspective allows business owners and managers to be in a better position to exploit opportunities. It also enables them to anticipate problems and take steps to mitigate risks. As the old saying goes: “Few businesses plan to fail, but many of those that flop failed to plan”. Analyzing budgets and comparing the actual results against the budgeted amounts is equally important for managers to be able to make better predictions and to achieve superior results. One of the most common misconceptions is that only larger organization need budgets. Budgets don’t have to be complex and in our experience the benefit of having a budget far outweighs the cost of not having one.
FEELING LOST? Don’t worry!
This is what we do! We can create a business plan, tailored to your specific needs, that will allow you to start or grow your organization! Each year, we will create a budget for your organization and help you analyze the variances, so you can make better management decisions in the future.
Request a Meeting
Book a meeting to discuss how we can assist you in starting or running your business.