Introduction Did you know that 70% of small businesses in Canada have switched to cloud-based bookkeeping? Here’s why you should consider making the switch, too. In this post, we’ll explore how cloud-based bookkeeping for small businesses can save time, money, and headaches while keeping financial data secure and accessible. I. The Current Pitfalls of Traditional…
Business structure plays an important role in tax perspective. Business structure in Canada determines how you will report income and which tax forms/returns you will have to use to report income to CRA. There are three most common types of business structures being used, which are as follows: Sole Proprietorship Partnership Corporation Sole Proprietorship A sole…
There are various tax and non-tax reasons to incorporate your business or investment portfolio; some of them are discussed below in brief: Tax reasons of incorporating: Income splitting: Income from business or property can be distributed among low earning family members instead of distributing to one person paying taxes at a higher rate. However, if…
Employees earning a salary may be able to claim some employment-related expenses if their employment conditions require them to pay for such expenses and in most of the situations is certified as such by the employer in CRA Form T2200 Declaration of Conditions of Employment. Following employment expenses are deductible by employees earning a…
The quick method of accounting for GST/HST is an alternate option available to small businesses to calculate their net GST/HST, especially for those who do not have much to claim/adjust as ITC (input tax credit) against GST/HST collected on revenues. Such small businesses are able to keep some money out of HST collected, spend less…
Income or loss derived from the rental of property inside and outside of Canada must be reported on your income tax return on a calendar-year basis. There are two types of expenses, namely, current expenses and capital expenses. You can deduct current expenses from your gross rental income. To earn the rental income you may…
No matter what small business owners live with worries all the time. When one problem is solved there is another challenge ready to address and go ahead. This is the reality of small businesses. Here are few of the small business challenges they usually face and tips to address them and go ahead strongly and…
Small business owners face risks and challenges every day to compete and survive in this competitive market. To mitigate risks and overcome challenges they need to take proactive measures to stay strong and survive. Doing back office works such as bookkeeping, compliance reporting, reconciling bank/credit cards, customers and vendors accounts, calculating GST/HST, payroll and payroll…
Trending financial technology has shifted the paradigm of maintaining books and records of businesses from always by a professional bookkeeper/accountant to by anybody with very minimal to no knowledge of basic bookkeeping. Cloud-accounting software such as quickbooks, sageone, waveapps, freshbooks, xero have shifted the concept of bookkeeping from desktop to cloud-based software. Small business owners…
Although CRA does not expressly mention how they select taxpayers for tax audit purposes, it is based upon our experience that following may trigger, among many others, a tax audit. If you want to keep your small business stay out of such triggers here are some tips mentioned below against each trigger: Discrepancy in revenue:…
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