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Filing Taxes Insights

June 8, 2022
small and new business bookkeeping

Advantages To a New Business of Using a Bookkeeping Service in Canada

Employees of a small business organization are always active in the company’s fundamental activities, such as production, marketing, customer services, and sales. This is why bookkeeping operations are typically overlooked in such businesses. Hiring an accountant is a viable option, but that in itself comes with a lot of responsibilities, such as organizing interviews, training new staff, paying their salary, and so on.This is why, for small firms, outsourcing bookkeeping services is a considerably better alternative than forming an in-house bookkeeping staff. Here are some major advantages of using bookkeeping services for your small business: Increased Efficiency When you use […]
June 8, 2022
Renting Portion in Canada

Tax Implications of a Rental Unit in Your House in Canada

For people currently renting or considering renting a portion of the home they own, the tax considerations can be complex and the fallout costly if you don’t do it right. In fact, earning income from renting a portion of your home can be subject to different rules and reporting requirements to the Canada Revenue Agency. Once you start to go through all the considerations, small rentals can get quite complicated. The following are some basic guidelines for renting out a unit in your home. Step 1: Set up a legal rental While it might seem simple to just rent out […]
June 3, 2022
New Home GST/HST Rebate

GST and HST Rebates on New Homes in Canada 2022

Buying a home, especially a newly built home, is already an expensive process in Canada. Along with land, construction, and property taxes, there’s also that troublesome GST or HST to pay. While GST/HST isn’t charged on purchases of an existing property, newly built homes will have the tax levied on them, and it can add thousands to the cost of a typical home. Fortunately, The Canada Revenue Agency (CRA) offers relief from this cost in the form of the GST/HST New Housing Rebate, and it’s one thing you’ll want to add to your list of to-dos when budgeting for your […]
May 25, 2022

Should I Contribute to My RRSP or my TFSA?

The differences, pros, and cons of these popular registered accounts The Registered Retirement Savings Plan (RRSP) and its younger sibling the Tax-Free Savings Account (TFSA) are two of the most popular tax options for the average Canadian. Before deciding which, if either, to contribute to, here’s a primer on how they work, and what they’re best for. What is a Registered Account? Both the RRSP and the TFSA are what are called registered accounts. What all registered accounts tend to have in common is that growth within these accounts is tax-free. This means that any assets stored inside an RRSP […]
May 23, 2022
RRSP Contribution Guide

RRSP Contribution Guide

Contributing to an RRSP is always a great move, right? Not so fast. RRSPs reduce your taxes by sheltering income from tax when you contribute. You will pay the income tax later when you withdraw the funds, which is ideal when they’ve had a few years to grow (tax-free), and when you’re in a lower tax bracket because you’re retired or pulling back from your career. Here’s what to consider when you’re trying to decide whether, and how much, to contribute to your RRSP. The higher your income, the more you should contribute to your RRSP In general, the higher […]
May 17, 2022
Pay Off Mortgage

Tips to Pay Off Your Mortgage Faster

What’s the quickest way to pay off your mortgage? There isn’t 1 “fastest way” to pay off your mortgage. However, there are several things you can do to pay down your mortgage as quickly as possible. A shorter amortization – amortization period is how long it will take you to pay off your mortgage. Selecting a shorter amortization (i.e., 25 instead of 30 years) will increase your regular payment amount but you’ll be mortgage-free sooner. Select the amortization that lines up with payments you’re comfortable with. Make payments weekly or biweekly -Making more frequent payments can help shorten your mortgage and […]
May 12, 2022
Bookkeeping in Canada

Why Business Needs Effective Bookkeeping?

Accounting and Bookkeeping for your small business may not be the most fun aspect but they are the most important. Why Business Fails? The study showed that 29% of small businesses failed because they ran out of cash and 23% failed because they did not have the right team. 18% of small businesses failed because of pricing and cost issues and 17% failed because they lacked a business model. These four ways equate to 87% of why businesses fail. Running out of cash, not having the right team, pricing and cost issues, and a lack of business model can all […]
May 1, 2022
CRA Review and Audit

CRA Review And Audits Of Your Tax Return

By educating yourself on the process and making sure you have all your important records on hand, you can save yourself a lot of unnecessary worries. You filed your return on time, but now you have received a letter from the Canada Revenue Agency (CRA) asking for more info about the return. Should you be concerned? Not necessarily. As long as you have kept the information the CRA needs to review, the process can be smooth and headache-free. Here’s what you need to know. How are returns selected for review? Individuals are generally less likely to be selected for review than businesses […]
May 1, 2022
Work from home write off in canada

Work-from-Home Write-Offs in Canada

As we all are aware a lot of things changed in 2020 due to Covid-19 for everyone’s work-life with laptops and file folders permanently residing on unused dining tables, Zoom becoming the standard for connection, and lots of creative ways to combine dress shirts with sweatpants, pajama pants and everything in between. Also, with this new way of working came a host of questions regarding those mysterious tax write-offs which are now available to many more people who have joined club WFH. So that leaves me here, back behind the keyboard to share some insights and provide some guidance whether […]