Have you ever wondered how businesses achieve peak financial performance while maintaining their focus on growth? The answer might lie in the strategic power of outsourced accounting.
In this blog, we will delve into the importance of outsourced accounting for businesses of all sizes in Canada, shedding light on its advantages and impact.
What Does Outsourced Accounting Services Involve?
Outsourced accounting refers to the act of entrusting accounting and financial duties to an external service provider or a dedicated accounting firm.
Why opt for Outsourced Accounting Services?
Outsourced accounting allows businesses to streamline operations, reduce costs, and tap into specialized expertise while focusing their internal resources on core activities and strategic initiatives. We will explore the reasons behind the growing trend of account outsourcing and the benefits it offers to businesses.
1. Navigating Complex Financial Landscape
For businesses, staying compliant with these regulations while maximizing financial efficiency can be a daunting task. It is where outsourced accounting steps in as a strategic solution.
Whether it’s GST/HST implementation, tax reporting, or financial statement preparation, outsourced accounting professionals are well-versed in these intricacies, enabling businesses to navigate the financial landscape with ease.
2. Cost- Efficiency and Scalability
One of the primary reasons businesses opt for outsourced accounting is the significant cost savings it offers.
Furthermore, outsourced accounting offers scalability. Outsourcing allows for seamless adjustments to service levels, ensuring that financial operations remain aligned with the organization’s growth trajectory. This adaptability is crucial for businesses aiming to scale rapidly and efficiently in the competitive market.
3. Access to Expertise and Technology
Outsourced accounting firms in Canada are equipped with the latest technologies and methodologies, ensuring accurate and efficient financial operations.
4. Focus on Core Competencies
Businesses need to concentrate on their core competencies to maintain a competitive edge.
Entrepreneurs and business owners can channel their energy towards innovation, product development, and customer engagement, thereby driving growth and enhancing their market position.
5. Enhanced Data Security and Compliance
Businesses handling sensitive financial information must adhere to stringent data protection regulations.
By entrusting their financial operations to reputable outsourced accounting firms, businesses can focus on growth without compromising data security or facing compliance-related challenges.
6. Mitigating Risk
Conforming to accounting norms and tax statutes stands as a pivotal concern for businesses. Yet, these regulations are intricate and susceptible to regular modifications.
Strengthen Your Business with Filing Taxes Accounts Outsourcing Services!
Filing Taxes presents a range of accounting outsourcing solutions encompassing proficiency, economic advantages, cutting-edge technology, adherence to regulations, time efficiency, and tailor-made reporting. Through collaboration with our expert accountants, enhance your financial administration, alleviate operational encumbrances, and channel efforts into strategic endeavors that bolster your business triumph.
Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step toward proper management of your finances and ensure you comply with CRA reporting and payroll deductions.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
As a small business owner in Canada, it’s not uncommon for your day to go in various directions. Once your business starts to gain momentum your company must find an effective way to manage its books.
From small startups to large corporations, businesses of all sizes are increasingly turning to outsourcing their bookkeeping functions. The decision to outsource bookkeeping services comes with a multitude of benefits that can positively impact a company’s financial operations.
Outsourcing bookkeeping services has become an increasingly popular choice for businesses, regardless of their size or industry. By partnering with a reliable bookkeeping service provider, companies can unlock a multitude of benefits that significantly impact their financial operations. In this article, we will delve into the compelling reasons why businesses should consider outsourcing their bookkeeping functions.
The benefits of outsourcing bookkeeping are numerous—and you won’t miss a thing, either. You may even discover new, previously untapped resources at your disposal.
1. Streamlining And Managing Finances
The first step on the road to business expansion is making sure the road itself is smooth and solid enough to walk on by ensuring your current financial processes and books are streamlined and updated. Having a professional bookkeeper on board makes these processes efficient and easy. The outsourced bookkeeper can collate and analyze your business data to create comprehensive monthly or quarterly financial reports. Having such detailed reports helps make informed business decisions. They also come in handy when approaching potential clients or investors for business.
2. Save Time
It’s no secret that logging, analyzing, and reconciling payments and other financial records takes time out of your day. One of the benefits of a virtual bookkeeper is that you can buy your time back—at a much lower cost than your lost opportunities, too.
By outsourcing this tedious, time-consuming task, you can attend to the things that require your attention. You’ll have more free time to improve customer service, evaluate processes, and overall, improve operations.
Focused Staff – external bookkeepers can provide more focused work because they aren’t distracted by the day-to-day activity in your business.
The role of an outsourced bookkeeper is to focus on your business and only your business for a specific amount of time each month to meet your reporting deadlines and expectations around the budget for services.
3. Cost Efficient
Outsourcing bookkeeping services can significantly reduce costs for businesses. When you outsource, you eliminate the need to hire and train full-time in-house bookkeepers, which can be expensive and time-consuming. You also save on overhead costs, such as office space, equipment, and software licenses. Outsourced bookkeeping services in Toronto often operate on a more flexible fee structure, allowing you to pay for the services you need when you need them, making it a cost-efficient option.
4. Expertise and Accuracy
Professional bookkeeping firms specialize in financial record-keeping and have a team of experts with a deep understanding of accounting principles and Canadian tax regulations. Professional bookkeeping firms specialize in financial record-keeping and have a team of experts with a deep understanding of accounting principles and tax regulations.
5. Planning and Strategizing
Professional bookkeeping services in Toronto give your business access to expert guidance. Apart from generating real-time financial insights that provide clarity on the current financial situation of your business, these experts can also identify key performance indicators and growth opportunities. Based on the data collected and armed with the latest technology, they can also help predict future sales or trends. They can guide you on how to make optimal use of the resources at your disposal. In-depth knowledge regarding business and tax regulations in other states or countries makes such outsourced bookkeepers and accountants a valuable addition to your team.
6. Enhanced Security
Professional bookkeeping firms prioritize data security and confidentiality. They implement robust security measures and use encrypted systems to protect your financial information. This level of security can be challenging and costly to replicate in-house, making outsourcing a more secure option.
7. Access to Advanced Technology
Outsourced bookkeeping services in Toronto often have access to the latest accounting software and technology. This ensures that your financial records are kept up-to-date and that you benefit from the efficiency and accuracy offered by modern accounting tools.
8. Helps in Tax Seasons
Why make tax season stressful when it can be simple? Among the many other benefits of outsourcing bookkeeping, simplified tax preparation, and full compliance will take unnecessary stress off your shoulders.
Instead of scrambling to get your numbers in order, outsourcing bookkeepers will help you prepare for tax season as time goes by. Once the time comes, they’ll be able to help you file immediately, while taking advantage of potential tax deductions.
9. Scalability and Flexibility
Businesses experience fluctuations in their financial activity throughout the year. Outsourced bookkeeping services can be tailored to your specific needs and scaled up or down as required. This flexibility allows you to adapt quickly to changes in your business, whether it’s during busy seasons or periods of economic uncertainty.
Get Industry-Leading Bookkeeping Services in Toronto & Never Lift a Finger
Outsourcing a bookkeeping service can make a difference in how efficiently your small business can grow. At Filing Taxes, we’re invested in helping your business grow. We offer all the benefits of outsourcing bookkeeping, and take care of the entire process for you!
Get started saving time and money in your business by signing up now! Talk to a professional bookkeeper to outsource your bookkeeping so that you can save time and focus on your business.
Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step toward proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
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 an online accounting agency, you can be assured that your company’s bookkeeping will be handled professionally by specialists. This also frees you up to concentrate on other crucial business operations that directly impact your sales. As a result, your company will run smoothly.
Cost-Friendly
Putting together an in-house bookkeeping staff is expensive and a time-consuming endeavor. From setting up interviews to training staff, it takes a lot of time and money because you have to pay them regularly. Outsourcing bookkeeping services for your firm, on the other hand, relieves you of these headaches.
Tax-Penalty Avoidance
Managing your business finances without the help of a professional might lead to more errors in your income and tax reports, as well as other paperwork. Tax fines follow as a result of this. If you don’t want to lose your hard-earned money on penalties, you should get an accounting service that can quickly minimize these dangers. This is because experienced bookkeepers guarantee that all of your financial reports are delivered to the government on time and error-free.
Latest Software
Do you know some people still use Excel to manage their accounts? That’s because many small firms do not have the financial means to invest in the most up-to-date bookkeeping software. Even if they are financially stable, they may not put it to good use when they purchase it. You can have access to the latest software without buying it or learn how to use it by hiring bookkeeping services. This software helps you keep track of your finances more easily and quickly.
Allows You to Easily Share Your Value with Investors
Investing in a business entails a high level of risk. Investors want to be certain that your company is worthwhile before releasing funds. If you’re looking for investors for your company, you’ll need a clean and current track record. Many investors may request your financial records, and if they are in shambles, they will view you as a sloppy business owner.
A clear and comprehensive record reveals a lot about your company as well as your work ethic. You can maintain an accurate record with an online bookkeeping service, and you won’t have to do much convincing because your books will speak for themselves.
In Conclusion
Keeping financial records up to date for your business might be the most important aspect of keeping your business afloat. As stated earlier, the four main reasons small businesses fail are that they run out of cash, do not have the right team, have price and cost issues, and lack a business model.
If you have a bookkeeper you have a better idea of the money coming in and out, allowing you to make the right decisions to not run out of cash. Having a bookkeeper on your team allows you to discuss the financial aspects of your business and helps you see how you can re-evaluate your team based on the money you are spending in those categories. With that information, you can also better see what you are spending on items to better price your items to hopefully illuminate any pricing or cost issues. And finally, having the financial aspect of your business rooted helps you to better plan in other areas and create a solid business plan.
All this to say, bookkeeping is incredibly important. Filing Taxes can help in all of these aspects as well as processing your tax return. Allow us to be a member of your team and get your business financials under control.
Filing Taxes concisely deals with several complex issues; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
This is actually a common question, and it’s really important that you do it right. How do you do this, depends on various factors with your pre-existing business, as well as your new holding company.
You can surely transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a Section 85 Rollover.
There are few reasons that compel people to convert their pre-existing business to a new holding company. One of the primary reasons is that the business has grown. This alone can be a significant reason to switch the business to a new holding company.
There are a number of things to consider when looking at switching your pre-existing business to a new holding company. Below are the commonly asked questions from our clients when they reach out considering what is involved in making the transition to an incorporated company.
Can I use the same business name?
Yes, you can use the same business name as you are currently using, you just need to add a legal ending to the business name from these six options:
It is good to know in advance from an accountant about this kind of stuff so in the future you don't have to face problems or difficulties.
What other information is required to Incorporate?
Can a new person be added to the incorporation?
Yes, you can. If you wish to add someone as a director to the incorporation who was initially not part of your pre-existing business, now is the perfect time to add them. A crucial time for your company, so to get the knowledge from an accounting firm that what you are going to face.
In which categories of incorporation, we offer our services?
What changes are required after completing the incorporation?
We are here to assist you to make the process of converting a pre-existing business to a new holding company a seamless and, easy process where we move with you step by step through the incorporation process. We need more information about your business and its existing setup to guide you in more detail. If you need any further information and you are still uncertain about incorporating your small business, our experienced and professional team at Filing taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer:
The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting firms and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
If you are a member of a trade union or professional organization, you can deduct certain types of union contributions or professional membership dues from your income tax applications.
The amount of union fees you can claim is listed in box 44 of your T4 tickets or receipts and includes any GST/HST you have paid. You can claim these amounts as a tax deduction on line 21200 in your tax return.
If you are the primary beneficiary of the union contributions and your company pays them on your behalf, you are not entitled to a tax deduction, and you may have to pay taxes on this benefit.
There are different types of trade union and professional membership dues that you can deduct when filing taxes. You can claim your work-related contributions that you have paid or paid on your behalf and that have been included as part of your income during the year.
The CRA allows you to charge the following types of fees on your tax return:
It is important not to apply for the trade union tax deduction more than once. Your employer can show a trade union tax deduction on your T4 tax document, and you can also receive a tax document from the professional association or organization to which the contributions relate.
Make sure the amounts match and request them only once. The dual application of union taxes can result in a revaluation notice and possible fines and interest due. If you are still unsure about the process, you can get in touch with an accounting expert so he can tell you everything.
You should also keep in mind that if you are going to hire an accountant for your work, you should ask him/her for the bookkeeping tasks because mostly accountants handle these things and that is why they are called an accounting firm.
By the close of February, each employer must issue employees with earned income tickets from the previous fiscal year. The amount of union contributions eligible for tax deduction is shown on the T4 slip in box 44. You can apply for a tax deduction on line 21200 of your tax return, and if your employer is a registered GST/HST, you may be able to request a reimbursement of part of the union contributions.
You cannot claim a tax deduction for start-up expenses, licenses, special estimates, or fees unrelated to the company's operating costs. As an affiliate of a pension fund, you can no longer apply for a tax deduction for the payment of membership dues.
Prior to 2018, an employee who had previously paid taxes could be deducted as unpaid expenses for company employees if the total amount of contributions plus some various deferred expenses reached a certain level. The employee then deducted the contributions if he was able to write down the deductions.
On the occasion that an employee requests a deduction for professional membership or union contributions, some additional considerations arise. In general, although a particular job title need not be a condition of an employee's position for that member of staff to claim a deduction for related professional contributions, the CRA requires that there be some link between the employment and the association professional in question.
In some cases, the employer is willing to pay the cost of the employee's professional contributions as part of an employee benefit package. In this instance, the employer's payment of these contributions is not shown on the employee's T4 as a taxable benefit; the employee cannot claim a deduction for those costs. However, if the worker suffers a taxable advantage, he can, on line 212 of the return, request the deduction of any taxes or allowable taxes paid.
If you are required to pay professional membership dues as a condition of employment and your employer pays or reimburses them to you, you cannot claim a tax deduction on your earned income. Depending on who your primary recipient is, there may be a tax advantage for you. For example, if you are the primary beneficiary and your employer pays your contributions, you will have a tax benefit due.
The amount of the taxable benefit is indicated on the T4 slip in box 14 (employee income) or in code 40 (in the Additional Information section) of the T4 slip.
Whether you make an appointment with one of our experienced tax professionals or choose one of our online tax registration products, you can rely on us to help you determine if you can claim tax deductions.
Well, the first thing is don’t panic. There could be various reasons why a person wouldn’t have paid their taxes. You could owe a significant amount of money and not be able to afford to repay, business hardship, life threatening illness, paying taxes might have slipped out of mind due to any reason, you may not have filed your taxes at all. In any circumstance, if you owe a tax debt to the Canada Revenue Agency (CRA), this problem won’t just disappear.
Millions of Canadians file their tax returns late – and if you are one of them just get started with your tax filing. The longer you wait to come clean, the harder the CRA will hit you with penalties and interest payments, and the likelihood of the CRA seeing your avoidance as tax evasion increases. The CRA may not have contacted you yet, but it doesn’t mean it will never.
Late filing charges and penalties begin as soon as you miss the tax deadline (typically April 30 each year, for most Canadians) there is an automatic late filing penalty of 5 percent of tax owing. For each month you do not file, you are charged another one percent.
In case you did pay your taxes but less than the tax amount you actually owe, the CRA will charge the interest amount daily on the amount owing. These interests and penalties add up faster, which is why the only escape to harsh catch by CRA on late filing is to resolve your tax situation sooner than later. This is a very difficult issue to face so it is best to contact an accountant in advance.
If you have failed to file your income tax returns, GST/HST returns, or corporate T2 returns for several years, there is a remedy for it, even when many years have transpired. If the CRA has not contacted you regarding your late filings, you may be eligible for the Voluntary Disclosure Program. It is a tax amnesty program, which will allow CRA to waive some or all of the penalties and some of the interest levied. We can help you determine your eligibility for this program and submit your application.
It should be noted that this program may be utilized by a taxpayer only once in their lifetime (barring any other exceptional circumstances). This option does not apply to everyone and it does not reduce the overall amount that you owe. You are bound to show proof that you were unable to file or pay your taxes on time to apply for this program.
You may also be eligible to arrange a payment plan with CRA. However, to negotiate a payment plan with CRA, you have to provide many details about your financial situation, including your income, your debts, your expenses, and your assets. Using this information, the CRA will decide whether to offer you a payment plan and if yes, how much you will need to pay each month.
It is important to consider that CRA will not ever accept less than you owed to it. It will want its money first and prioritize it over your other financial obligations. For example, the CRA may instruct you to only pay the minimum balance on your credit card to apply additional money to your tax debt. This will shoot up your costs, as credit card interest rates are typically quite high.
Before you take any steps to deal with back taxes, it is important the services of a financial professional who understands Canadian income tax. With years of experience in corporate and personal tax law, Filing Taxes is your premier partner for all your tax needs in becoming up to date with your tax filing obligations and mitigating penalties through amnesty applications. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
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 risk running up against errors or other common audit triggers for the Canada Revenue Agency (CRA). At Filing Taxes, we thoroughly understand how difficult it can become for small business owners to catch up on their bookkeeping. The longer you put off, the more overwhelming the task will be. Therefore, we provide our well-grounded bookkeeping services in Toronto, Mississauga, Oakville, and Hamilton that can help you work through the details of your situation. If you have no clue where to begin, here’s a step-by-step guide to help you to catch up on your fall behind bookkeeping. Let’s dig in.
The first step is getting organized. Find out how far behind you are in your bookkeeping or accountancy to determine how far back into the past you are going to have to begin. Start by gathering all of your documents. It is the most tedious task of the bookkeeping process. It is probably the most time-consuming task to catch up on. However, it might be simple if you know where to find all the documents. You should look for:
2. Reconcile Your Bank Statements.
Once you have gathered everything together, it’s time to get into your records and reconcile them with your bank accounts. Bank reconciliation helps you to assure that your accounting records exactly match your bank and credit card statements. Being able to identify when and possibly to whom payment was sent to or received can help you track down and fill gaps during your catch-up bookkeeping endeavor. Reconciliations ensure your records are accurate.
To get into the deeper details of these things it will be good for you to hire an accounting firm rather.
3. Segregate the business and personal expenses.
Set definite limits between your business and personal finances, otherwise, the cleanup process will be tricky to manage. And for the future, it is advised to have a separate business account to have a separate record of all the financial activities of the business. Just because you own the business, it is not recommended to exploit your access to business funds for personal matters.
4. Digitize all your business records.
The essential tip to support all of the above is to digitize your record maintaining process. Digital eruption is becoming a necessity for today’s business world. Businesses are transforming to a paperless approach.
(If you need any guidance or training in this aspect log in to gettrainedgethired.com)
5. Hire a professional bookkeeper.
You should be honest with yourself when making this decision for the catch-up mission of bookkeeping. In the first place be honest to yourself about why you fell behind maintaining your records. Then explore your options that align with the reason identified. Being a business owner the reason is most likely that you have so much to look after that this essential routine task falls low in your priorities. The options you can consider can be whether you need an in-house bookkeeper, outsource bookkeeping services, or a software solution that can organize your data and take some burden off you. Whatever option you choose, filing taxes is always there to help you through its wide range of bookkeeping services in Mississauga, Oakville, Toronto, and Hamilton.
Tip: Once you have gotten your bookkeeping into better shape, avoid the temptation to put it off again.
Always bear in mind that there are some tricks to make catch-up work more efficient. If you still find the task too daunting to handle on your own, filing taxes help you consider all aspects of your business plan and goals to create a bookkeeping process that works for you. Let our bookkeeping services in Toronto, Oakville, Hamilton, or Mississauga help you get through this gap. Feel free to reach out to Filing Taxes at 416-479-8532? Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.
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