Filing Taxes Insights
April 8, 2021
Bookkeeping is a very essential function for every business, whether it is a start-up, small or medium-sized, or an accounting firm. Accurate books of accounts and financial documents help in efficiently managing the business and driving it towards growth. There are two ways to get there. In-house bookkeeping and outsourced bookkeeping wherein in-house means hiring bookkeepers as employees who work in the company and outsourcing refers to delegating the services to a third party. In-house and outsourced services offer different workflows when managing the bookkeeping for your company. Many small and medium-sized businesses usually find it difficult to choose between […]
April 5, 2021
Bookkeeping not only saves you money and time but also plays a vital role in tax planning and saving. In this article, we will explain how bookkeeping ties into your tax planning and preparation. Maintaining accurate books is critical to have a foundation that will assist you and your tax advisor make important financial and tax-saving decisions. Efficient bookkeeping allows you to effectively manage your business., identify cash flow issues ahead of time, and implement proactive tax planning strategies throughout the year. Your tax preparer and bookkeeper should be working together as it is stated “teamwork makes the dream work”. […]
April 2, 2021
You would be hard-pressed to find someone who can articulate the difference between bookkeeping and accounting. While both the professions assimilate common objectives, they support in different stages of the financial cycle of your business. To an untrained eye bookkeeping and accounting may appear the same. The reason is both professions deal with financial data, require basic accounting knowledge, and generate reports of financial transactions. However, both these processes are inherently dissimilar and have their own sets of benefits to the business. In this article, we will explore the functional differences between bookkeeping and accounting and how the distinctive nature […]
March 30, 2021
In the early stages of getting a business off the ground, it is common for business owners to drive the entire business themselves. From daily operations to the backend support, plus everything in between. However, managing your business is no small task. It might be manageable in the beginning, as you scale, it will become more challenging for you to keep track of everything. Handling the financial side of your business when you are not a professional is a precarious decision for your business. To an untrained eye, it simply means keeping track of your financial activities– but a professional […]
March 26, 2021
If you are a small business owner, chances are that you are more inclined towards the do-it-yourself approach. At the beginning of your business operation, you may have taken the majority of bookkeeping and accounting tasks on yourself or you can give these tasks to accounting firms. Owning and running your own business means handling an ever-increasing number of tasks but putting off managing your finances can lead to severe ramifications. No one person is an expert on everything, and some technical business aspects require a level of professionalism that may not be possible by the owner. One of these […]
March 23, 2021
So your business has fallen a little behind on bookkeeping, don’t panic. It happens to small business owners everywhere for many different reasons. Bookkeeping often falls low on the priority list for business owners. Organizing the documentation of business transactions piled up in shoebox overtime can be a nightmare. If your business has fallen by the wayside in updating its books, there’s never a better time to catch up on it than right now- especially if the tax season is around the corner. If you wait until your tax return deadline begins to loom in front of you, you may […]
March 22, 2021
Purpose of Financial Statements The objective of financial statements is to provide information about the financial position, performance, and changes in the financial position of an enterprise that is useful to a wide range of users in making economic decisions (IASB Framework). Following are the main users and their respective use of financial statements: Managers: to manage the company’s affairs. Shareholders: assess the risk and return of their investment in the company. Prospective Investors: assess the viability of investing in a company. Financial Institutions: assess financial health to decide whether to grant a loan or credit to a business. Suppliers: […]
March 17, 2021
Why would a Company want to change its Fiscal Period? Fiscal year-end remains the same year after year unless there is a dire need for it to be changed. A company changes its fiscal period for various strategic reasons. Reasons may include operational convenience, liquidity reasons, industry benchmarking, seasonal fluctuations of the business, financial reporting requirements and tax implications to name a few.. Is it Allowed to Change Year-End in Canada? Year-end change is an internal matter as it might be required to adhere to business needs. Hence Canada Revenue Agency (CRA) has allowed this change in year-end with some […]
March 13, 2021
Definition of Capital Gains Capital gain is the profit earned on the sale of a ‘capital asset’. Canadian Revenue Agency (CRA) defines securities in the form of shares, investment properties, bonds, and stocks as well as real estate as “capital assets”. Capital gain results when the selling price of an asset exceeds its purchase price. Calculation of Capital Gains Investments yield income when they are held and create capital gains when sold. We pay income tax on the income generated by investments and pay capital gain tax when investments are sold at a profit. CRA requires the following amounts to […]
