WHAT WE DO...
Our services include:
Accounting set up
Organized information and bookkeeping
Sheet income statement
Statement of cash flows transactions by accounts
Customers and receivables reports
Vendors and payable Inventories maintenance and reports
GST/HST preparation and filling
Annually T4 preparation and filling
Annually T4 summary preparation and filling
Record of employment (ROE)
Workplace Safety and Insurance Board (WSIB), registration and preparation.
We are believers in trying to streamline your record keeping so that you are not inundated with paperwork.
To this end, we believe in a good filing system above all. A simple set of files for your expenses by category can go a long way through the year to keeping yourself organized. Some of our clients keep a ledger, whether using a computer program or manually. For most small business people, this is cumbersome, frustrating and time consuming.
The best thing that we can provide to CRA in case they question your Office Expenses for example, is a batch of invoices for these expenses with an adding machine tape attached that agrees with your claim.
So if we can simply keep a good filing system through the year with this in mind, we have accomplished our goal.
For many small businesses, any attempt to log expenses in any form is generally for your own purpose, not for the government, and therefore consideration should be given as to whether you are benefiting from doing all this work.
Often the exception to this rule is a log of your vehicle usage; We know that this one is bad enough.
If your business justifies more detailed record keeping, we are professionals in the use of QuickBooks Accounting Software, and we highly recommend it. We can discuss this and your overall record keeping with you at your convenience.
In addition, we offer bookkeeping services through the year with an aim to keeping your records in order, as well as to provide you with ongoing management information for you to determine how your business is doing and to make tax recommendations to you through the year.
Starting a Small Business
Because of this, there is an important incentive in the tax system to help you start a business of you own. If you thinking of starting a small business, CRA allows you to deduct losses resulting from business activity from your other taxable income.
In large part, CRA allows these losses as a consequence of “having a reasonable expectation of making a profit”.
What this means in practice is that if you have been claiming losses on a business for 3 years, you better re-consider, because you might now be proving to CRA that your expectation is no longer reasonable, or worse yet, was never reasonable in the first place.
While this is a guideline, it is not always the case, and your own circumstances may warrant a different treatment.
We can assist you in all registrations required to start a small business in Ontario.
Whether you are renting out part of your own home, or have a separate investment property, the rules are similar, but different.
In both cases, we will want to consider mortgage interest, property taxes, utilities, repairs, and travel expenses.
In both cases, it is treated as self employed income, and all the rules associated with earning self-employment income can apply.
Corporate Income Taxes
Many of our small business clients have incorporated their businesses, which ads an additional complexity to your tax filings.
As a corporation, you are required to file separate Corporate Tax Returns to both the Federal and Provincial Governments each year.
As a rule, a Corporation is considered a separate legal entity from yourself, and it offers the benefits of protecting yourself as an individual from any problems arising from the activities of your company.
There are some exceptions to this rule. For example, if your corporation owes GST or employee deductions, you are personally liable for these items. If you signed any personal guarantees on behalf of the corporation, you will still be liable personally for these debts.
As a rule, it is common to be told that for tax purposes you should incorporate your business. In most of our client’s cases, this is simply not true. In some cases, in fact the opposite can be true.
Corporations bring along an additional level of complications, and as a result your accountant’s fees increased tremendously. If you are considering the pros and cons of incorporating your business, call us to discuss this further.
If you are self-employed, you may be required to register to obtain a GST number from CRA. In general, if your annual revenues exceed $30,000.00, you must register and start collecting GST from your clients.
In general, GST is charged on top of all services and sales in Canada.
In many cases it can be an advantage to register for GST even before this requirement kicks in.
We can assist you in determining what is to your advantage, as well as with registering and filing your GST returns.
The theory behind the workings of this GST registration is relatively straight forward. Once you register, you are required to collect GST from your clients, and in turn pass it on to the government. Where you win is that you get to deduct any GST in your business expenses from what you owe to the government.