Automation for small businesses: 10 tasks you should and should not automate

Over a decade ago, Gallop discovered the average small business owner works 52 hours a week. 39% put in over 60 hours. And 86% work on the weekends. Fast forward to today, and those numbers have only intensified. Much of that is a labor of love. And yet, you started your business to gain more […]

How QuickBooks Invoicing Software Can Save You Time and Money

Whether you bill your clients daily, weekly, or monthly, invoicing can be a chore. Most small business owners spend countless hours per month on administrative tasks, like creating invoices. However, by using accounting software, you can speed up the invoicing process exponentially. On average, QuickBooks users get paid two times faster. Read more to understand […]

Retail versus wholesale business models: What’s best for my business?

For small businesses just getting started, retail versus wholesale can feel like a make it or break it decision. Worse, complicated formulas and a host of acronyms cloud the already murky waters. The truth is determining which model is right for you doesn’t mean you have to understand electronic data interchanges (EDI)—the system most wholesalers […]

Small Business 101: Why Spreadsheets are a Thing of the Past

As a small business owner, you need to have the most recent financial information for your company instantly available. But if your business relies on spreadsheets to tackle day-to-day accounting, it might take more time than necessary to find the financial details you need.   The spreadsheet method also limits the number of people who […]

Starting your own business in 2019: Self-employed advice

If you find yourself growing increasingly frustrated with your current job, it might be time to make the most of your talents and enjoy being your own boss. While self-employment takes a lot of hard work and involves its own set of challenges, a growing number of people have found the pros far outweigh the […]

What You Need to Know About 2019 Canadian Tax Brackets

Are you familiar with the tax brackets for 2019? The new tax brackets provide better rates for most people compared to the current 2018 numbers. Taxes in 2019 decline in all brackets while the percentages stay the same. Due to the thresholds increasing, the tax burden is less for your self-employed business. The opportunity here […]

Small Business Budget Tips

As a self-employed business owner, creating a budget is one of the most important things you can do to grow your business in a healthy way. While you might assume an annual budget is the best approach to financial planning, monthly or quarterly budgets can also be useful for keeping your financial situation under control […]

Making the Most of Your Business Budget in 2019

Crunching numbers isn’t glamorous, but planning your business budget for the year ahead is essential if you want to succeed in 2019. By identifying the streams of income and operating expenses that make up your annual budget, you can save money and draft a strategy for a lucrative year in business. The budgetary balancing act […]

5 eCommerce Platforms that Integrate with QuickBooks

Your e-commerce platform serves as the heart of your online retail business, so you need a system with robust features. Because there is so much data pouring through your sales channels every day, you need a way to organize and manage the numbers within your overall accounting system. Choosing an e-commerce system that integrates into […]

Small Business 101: Creating the Perfect Business Plan for Your Business

Are you a small business owner opening your doors for the first time? Or maybe you’re newly self-employed, giving the gig lifestyle a go. Regardless of the type of business you operate, having a comprehensive business plan is a must-have, especially if you’re a startup looking for backing. A lot of research goes into crafting […]

The 5 Top Benefits of Electronic Invoicing for 2019

As a small business owner, you’ve got a lot on your plate. From tracking employee time to managing payroll, your hands are full. Try to streamline your administrative work by switching to electronic invoicing–the process can save precious time and money. There are a host of benefits when it comes to electronic invoicing. Here is […]

5 Steps to Preparing a Cash Flow Forecast

An accurate cash flow forecast is a critical tool that reveals the real-time financial health of your business. It measures vital metrics, like how much cash is coming in? How much money is going out? Are expenses creeping up? How accurate is your projection? A comprehensive and precise forecast can answer these questions and more. […]

Construction 101: How to Create a Construction Estimate

Are you a construction business owner? You probably create at least a couple estimates every day for potential customers. What happens when that potential customer decides they’d like you to go ahead and build their dream home? Well, you celebrate. Then, it’s time to get to work and create an estimate. Read below to master […]

Small Business 101: P&L Statements and the Health of Your Business

The profit and loss (P&L) statement is a reporting tool you can use to assess the financial health of your company. A P&L statement shows you your overall profit or loss for a period and helps you see what specific business activities contribute to your overall results. The Components of a P&L Statement Whether you […]

7 valuable money lessons learned from Mom

Moms provide their children with a wealth of life lessons and sage advice. When it comes to money, moms are an especially rich source of insight. As a tribute to mothers everywhere, we asked small business owners and entrepreneurs to share the best money wisdom they gained from their mothers. Here are some of their […]

Why You Should Convert to Payroll Online

Feel like you’re spending way longer than necessary on payroll? Payroll is a crucial task for small business owners. However, managing your payroll can be tedious and time-consuming. Read on to learn why you should switch to payroll online with QuickBooks.  1. Increase Efficiency Working through your payroll can take a lot longer when it’s […]

Construction 101: How to Streamline Payroll

When you run a construction company, payroll is often one of your most complex administrative tasks. At any given time, you probably have employees at multiple pay rates working across a variety of job sites and crews. By streamlining your payroll process, you can save time and make sure that everyone’s getting paid accurately and […]

9 Things to Research Before Starting a Business

Starting a business requires having a thorough plan in place. Before you start your business, there are several questions and considerations you need to address. These are more than just passing thoughts, as they require lots of attention before you can even think about opening your doors. Here are nine aspects, along with a few […]

14 E-commerce Inventory Management Tips

If you run an e-commerce site, you know the success of your business is tied to properly managing your inventory. Not having enough of a popular product could cost you your best customers, but if you end up with inventory you can’t sell, your bottom line is likely to take a serious hit. Brick-and-mortar businesses […]

How to Write Off Vehicle Expenses

If you’re a real estate agent, you probably spend a significant amount of time using your vehicle for work purposes. The Canada Revenue Agency (CRA) allows deductions for motor vehicle expenses that you generate when operating a car to earn income in your business. Whether you’re self-employed or a commission-based salaried employee, this self-employment advice […]

How to Write Off QuickBooks Self-Employed

If you’re self-employed, you likely know a critical way to maximize your deductions is to claim your business expenses. However, did you know you could be missing out on major tax deductions? Without a smart expense management system, you could be leaving money on the table. On average, QuickBooks users saved $19,290 in deductions per […]

How to Track Expenses for a Small Business

As a small business owner, it’s important to track your expenses accurately to make sure your cash flow covers expenses. Organizing your expenses also helps you to be prepared when tax time arrives. QuickBooks can help you with everything from creating an expense report to dealing with a Canada Revenue Agency (CRA) audit. In this […]

A Guide to Finance & Accounting for Small Business Owners

As a small business owner, you probably have plenty of questions on finance and accounting, unless you run an accounting practice. With so many financial terms, calculations, and accounting strategies, it can be tough to keep it all straight. Whether you hire someone to manage your finances or not, it’s crucial to have a sound […]

Bookkeeping: The Basis for Your Business

Whether you’re fresh out of school and ready to take on an entry-level position or you have your own small business to manage, learning the art of bookkeeping is invaluable — especially come tax season. Accurately maintaining the books for your business helps you build a strong foundation of proper accounting practices. Tracking your business’s […]

Construction 101: How to Account for Accounting

While building a deck might be a cinch for you, preparing payroll and Profit and Loss statements might leave you cold. You started a construction company to build or renovate homes and buildings, so consider handing off those construction accounting duties to a professional. A professional accountant offers many benefits that more than makeup for […]

Self-Employment & Small Business Tax Guide

How to File Taxes for a Small Business Navigating the Canadian tax world can be complicated. This is why we created a master resource to address all of your tax questions. From the fundamentals of filing taxes to the tax nuances between provinces, you can find your answers here. We are committed to helping small [...]

The Right Payroll Option for Every Phase of Your Business

When you started your business, it might have been just you working alone, but now your company has grown and you have employees who are crucial to its continued growth and success. Finding and choosing the right payroll system helps ensure you pay your valuable personnel correctly and on time. You have a variety of […]

How to Build Your Small Business Budget

If you’re like many self-employed professionals and entrepreneurs, you’re working around the clock to get your business off the ground. But before you get too far along in your plans, consider taking advantage of some small business advice: Set yourself up for success with a small business budget. Benefits of Budgets for Small Businesses You […]

Ultimate Canadian Payroll Guide for Small Businesses

Understanding business is tough enough, but as the rules begin to pile up – especially those concerning Canadian payroll – it can be rather intimidating. This comprehensive guide will help you navigate the potentially stressful world of payroll management and foster a healthy company. Payroll Best Practices – Dos and Don’ts There are definitive best […]

Tax Savings Small Businesses Can’t Afford to Miss

When you run a small business, every penny counts. Your budget involves more than just sales, expenses, and profits — the way you file your taxes also has a big impact. That’s where tax savings for small business come in. By maximizing deductions and managing your income, you can lower self-employment taxes and pay less […]

7 Steps to Organize Your Small Business Finances

The way you manage your small business finances can make or break your success as an entrepreneur. That’s why putting strategies into place that help you organize your cash flow is so important. By making a few changes to the way you manage your money, you can get a better handle on your income and […]

Is Quickbooks Payroll Right for My Business?

With so many payroll software options available, what should you look for when determining the best one for your business? Multiple payroll software options can meet a variety of needs, but QuickBooks Payroll is consistently a top choice for small business owners. Learn about the various features and benefits of this comprehensive payroll software, and […]

What’s Better for Your Small Business: Weekly, Bi-Weekly or Monthly Payroll?

Hiring employees is a sign of growth, but it also comes with big decisions and responsibilities, including payroll. Once you sort out the legal requirements, you’re left with the decision of how frequently to run payroll. Weekly, biweekly, and monthly are the most common options with several pros and cons of each to consider before […]

Accounting 101: An Introduction for Etsy Sellers

Are you looking to start or expand your retail business? If so, you may want to consider Etsy Canada. What is Etsy Canada? It’s a popular platform for selling everything from vintage clothing to handmade crafts. Whether you’re just getting started on Etsy or you’re an established store owner seeking a better bookkeeping solution, it’s […]

How to Expense Mileage, Entertainment, & Meals

If your company operates even a single vehicle for business purposes, or if you sometimes spend money winning sales and new contracts, it’s essential to keep really accurate records of your expenses to back up the deductions you plan to claim at the end of the year. The Canada Revenue Agency (CRA) may not accept […]

Business Payroll: Cheques Vs. Direct Deposit

Paying your employees is one of the most important things you do as a small business owner. Miss a paycheque, or mess up the amount, and you have upset employees who may start to feel less confidence in their jobs. When processing your business payroll, you have two main payment options: traditional paper cheques and […]

List of the Most Common Business Expenses

As a business owner, you know that running a company costs money. Each month, you might pay for everything from office supplies to electricity. The government allows you to deduct these business expenses from your income at tax time — meaning you pay less in taxes. When you’re working with a tight budget, these tax […]

As An Employer What are Your Payroll Obligations?

Unless you run a solo small business, chances are that your employees provide the support necessary to make your company successful. While your employees have the responsibility of helping customers, building products, or providing valuable services, you as an employer have the responsibility to keep their payroll on track and on time. In Canada, employers […]

Understanding Small Business Payroll Accounting & Journal Entries

Even if you own or operate a small business, chances are you have employees – meaning payroll is a fact of life. Maintaining payroll accounting books involves knowing simple accounting journal entries – basically, to be sure your books are accurate and are in compliance with Canadian best practices, it’s vital that you know how […]

Canadian small business owners have one thing in common when it comes to cash-flow: uncertainty

Nearly 2 in 3 (64%) Canadian small businesses have had cash flow issues.   Cash flow is the lifeblood of success – small businesses and self-employed entrepreneurs rely on the ability to pay current expenses and forecast correctly to enable the ongoing growth and success of their business. To shine a light on the impact […]

How To Import & Track Expenses Automatically for Maximum Productivity

Manually entering business expenses and other data into your accounting software can be extremely time-consuming, and when you’re entering information by hand, there’s always a risk that you may put in the wrong number, forget a decimal point, or make other small errors. Luckily, you can save a lot of time and eliminate errors by […]

5 Things You Need to Know About Commercial Invoices

When you’re shipping goods across international borders, you should issue a commercial invoice. This serves as a customs document and contains more information than a traditional invoice does. Depending upon where you’re shipping goods, your commercial invoice may require specific details. Here are the essentials you need to know. What Is a Commercial Invoice? A […]

9 Strategies to Reduce Business Expenses

As a small business owner, you have to keep one eye on the bottom line continuously. Business owners often focus on bringing in more income as a way to grow their profit margin. But you can also improve your profit and loss statement by carefully tracking your expenses. When you lower the cost of running […]

How to File Self-Employed Taxes

When you’re self-employed, you have different tax responsibilities than a traditional employee. Essentially, the Canada Revenue Agency (CRA) considers you to be a small-business owner, and as such, you need to withhold your own payroll taxes and meet key tax filing obligations. Don’t worry: The process may be easier than you think. Read our guide […]

Rules of Overtime in Canada By Province

Understanding overtime in Canada ensures you’re paying employees fairly when they work more hours than the normal work period. In most Canadian provinces, the overtime rate is 1.5 times the employee’s standard compensation, and it’s typically paid after an employee works more than eight hours per day or 40 hours per week. There are quite […]

All You Need to Know About eCommerce Bookkeeping

Opening an e-commerce store is an exciting venture for any entrepreneur. With an online shop, your products are available day and night, year-round, to an international array of customers. The World Wide Web enables you to cast a wide net for a niche audience, drop-ship orders, and do it all while maintaining a small physical […]

Everything You Need to Know About Sales Receipts

Sales receipts are a normal part of doing business. So normal, in fact, that if you work in retail, you may take them for granted. When you’re running a company, however, it’s important to pay close attention to your receipts. The information they contain, the way you create them, and how they’re issued can all […]

You’re Still Not Using Payroll Direct Deposit?

Using payroll direct deposit to pay staff wages benefits your small business in multiple ways. A direct deposit system transfers employees’ wages into their bank accounts electronically from your payroll funds, leaving you time to focus on the big-picture issues facing your company. Direct deposit is also a convenient payment method for your employees, who […]

How to Make an Invoice in QuickBooks, Excel, & Word

Invoices are a vital part of your small business. They keep track of what customers or clients owe you when money is due, and what kind of cash flow you can expect in the coming weeks or months. Without invoices, your small or medium-sized business doesn’t have a way to collect money. You may also […]

Your Easy Guide to Payroll Deductions

As a small business owner, you have a lot of responsibilities, including your obligation to pay your employees. Just writing that paycheck isn’t enough, though — you also have to withhold your employees’ payroll deductions, remit them to the Canada Revenue Agency (CRA), and take care of more paperwork than you might expect. Payroll deductions […]

How to Create an Invoice Template in Word

To let your clients know how much they owe your business, you need to issue invoices. There is a multitude of programs that can help with this process, including Microsoft Word. Are you wondering how to make an invoice with Word? Here’s what you need to know. The Pros and Cons of Using Word for […]

How to Create An Invoice Template in Excel

Invoices offer a way for your small or medium-sized business to collect money from customers after providing a product or service. Two of the main computer programs for creating invoices are Excel, and dedicated accounting software such as QuickBooks Online, which includes all the features of an invoicing software. Each invoice should include some basic […]

What Is Invoice Factoring & How is it Used?

When your business is short on cash, you may want to explore invoice factoring. Factoring allows you to turn unpaid invoices or accounts receivable into cash. Here’s how it works: A factoring company gives you a certain percentage of the face value of your unpaid invoices. Then, your clients pay the factoring company instead of […]

9 Common Mistakes Prevented by Invoicing Software

While standard office applications, such as Word and Excel, can help you create invoices, you also have a higher risk of making mistakes when using them. Invoicing software helps you streamline your entire invoicing process and avoid these common invoicing mistakes. 1) Sending Late Invoices If you’re like most small-business owners, you probably have a […]

Your Small Business Accounting Guide

Whether you handle your accounting by hand with a ledger or use a computer, the central concepts are all the same. As you develop and grow your small business, there are a variety of accounting concepts you need to understand. While learning about accounting can seem cumbersome, it’s critical to know the basics. After all, […]

A Beginners Guide to Small Business Bookkeeping

Accurate, up-to-date bookkeeping is the backbone of any successful small business. No matter what type of business you operate, an understanding of bookkeeping best practices is essential for keeping your business running smoothly, now and in the future. If learning the ropes of small-business bookkeeping sounds intimidating, have no fear. Here’s your introduction to bookkeeping: […]

Everything You Need to Know About Business Sales Tax

What Are Sales Taxes? What Sales Taxes Currently Exist in Canada? Do all small businesses charge GST or HST to their customers? Must all businesses become registrants? But if all businesses charge tax to all other businesses, isn’t tax being charged over and over again on the same product or service? How to Track Sales [...]

Importers and Exporters: How to Use Trade Incentive Programs

Learn more about deferring or eliminating your taxes and duties payments on items your company imports using one of the programs offered by the Canada Border Services Agency. Eliminating or deferring tax payments lowers your overall cost, which could help you lower your prices.

Small Business Tax Guide: Tourism Business

Learn about the Foreign Convention and Tour Incentive Program, the rebate on GST/HST taxes paid on tour packages sold by travel professionals. Find out how to determine eligibility, and discover how eligible travel businesses can calculate the amount of their rebate.

Recording an Accounting Impairment Loss in Your Business

Learn what an impairment loss is and how you can determine if your asset has an impairment loss for you to write off. By writing off impairment losses, your business can save a few bucks on its taxes.

Should Your Company Relocate to a Province With a Lower Minimum Wage?

Determine whether moving your business to a new province to escape rising minimum wages and increased labour costs in Ontario and Alberta is a good idea or whether the costs, business disruptions, and logistical challenges of moving wipe away any benefit you get from cheaper help.

Small Business Term: What Is ASPE?

Learn about the Accounting Standards for Private Enterprises. Find out which Canadian companies can use these standards. Compare the ASPE to the International Financial Reporting Standards, and review situations where small- and medium-size businesses may want to use IFRS instead of ASPE.

Lowering Credit Card Fees in-Store for Small Business Retailers

Look at the history of credit card processing rates for small businesses in Canada. Find out why small businesses often face higher rates than their large competitors. Read about lower rates than have been negotiated between the Canadian Federation of Independent Businesses, Mastercard Canada, and Chase.

Small Business Deductions: Duty Deferral Program

Lower your tax burden if you import goods into Canada and meet a few conditions with the Duty Deferral Program. Learn about the three ways that the program can potentially help you save on duties owed and even get reimbursed for duties paid.

What You Need to Know About Miscellaneous Expenses

Learn how to track and account for miscellaneous expenses as you prepare for your tax returns. Make sure you don’t miss any miscellaneous business expenses and that you don’t claim so many that you’re in danger of a tax audit.

How to Choose the Best Bank for Your Canadian Small Business

Get tips on how to choose a bank account for your business. Learn about free or low-cost options for low-volume businesses without a lot of monthly transactions. Compare banks to credit unions and read about why many small businesses owners prefer credit unions over traditional banks.

What Is PCI Compliance?

Learn about PCI compliance, the PCI council, and PCI standards. Examine the problems that they are intended to correct, who they apply to, and how they are enforced.

How to Expand Your International Export Opportunities With Canada’s Trade Accelerator Program

Learn about Canda’s Trade Accelerator Program, and find out how it can help your company start exporting products or services in an international market. Find out about TAP Canada’s three-workshop process and the resources that are available to participants.

How to Get a Fidelity Bond in Canada

Build your business’s trustworthiness and reputation by using fidelity bonds. Learn what fidelity bonds are, their benefits, and see how you can get one for your business in a few easy steps.

What Is Forensic Accounting?

Learn about the specialized accounting field of forensic accounting, the function that forensic accountants perform, how accountants can become forensic accountants, and where they usually find work.

Don’t Forget These Tax Deductions for Your AirBnB or Other Short-Term Rental

Minimize your taxes on your short-term rental income by claiming all of the deductions available to you and reducing your taxable income. Understand the tax treatment of your AirBnB income.

What Is “Payment In Lieu of Taxes”?

Learn the meaning of the expression “payment in lieu of taxes” and its historical and practical significance. See who can receive these payments and how to apply for them.

What Is a Fiscal Pardon?

Learn what a fiscal pardon is and how it helps people and small businesses with back taxes to report them. Also, find out about the Voluntary Disclosure Program and the risks of using a tax accountant to apply for a fiscal pardon.

Will Your B.C. Small Business Be Exempt From the New Employer’s Health Tax?

Look at British Columbia’s Employer Health Tax effective in January 2019. Find out whether this tax affects your business, and learn how to calculate your tax liability. See how this tax indirectly benefits your employees, and discover when the government plans to eliminate Medical Services Plan premiums.

Invitation to Tender (ITT)

Learn what an invitation to tender is, what it is used for, how it can have a tremendous impact on your small business, and the conditions the government of Canada puts on its use.

What Is Keystone Pricing?

Learn what keystone pricing is in the retail industry, the margins that it generates, and why retailers must sometimes adjust the keystone markup for some categories of items.

Tipping in Ontario: An Overview for Employers

Look at Ontario’s tipping laws. Review your right to ban tipping in your dining establishment, and examine your obligations if you allow tipping. Learn about the province’s rules for tip pools, and ensure you are compliant with relevant regulations. Find out when owners and managers can accept tips.

Calculating Holiday Pay for Ontario Employees

Check out the holiday pay rules in Ontario. Review the list of public holidays in this province. Figure out how to calculate holiday pay for full-time and part-time employees as of January 2018, and learn how to calculate premium pay for employees who work on holidays.

Should There Be a Robot Tax?

Grow your sales by using automation software. As the use of artificial intelligence and automation grows, employees are being replaced. People like Bill Gates think the answer to the increase in robots is a robot tax. Others think a robot tax hurts innovation.

Handling Wages and Benefits Owed to Deceased Employees

Understand how to handle wages, salaries, benefits, and other monies owed to a recently deceased employee. Learn what rights the employee’s survivors have regarding workers’ compensation.

What Is a Pre-Money Valuation?

Learn what a pre-money valuation is and why it’s an important figure for anyone starting a business to calculate. See ways in which you can calculate a pre-money valuation.

Strategies for Protecting Your Business Against Currency Fluctuations

Learn about different strategies that help you mitigate financial risk and help protect your small business from currency fluctuations in the international commercial market.

What Is Economy of Scale?

Learn what economy of scale is and why it is important for a small business, and see an example of economy of scale. Learn what differentiates internal and external economy of scale.

What is “NOPAT”?

Show investors, debt holders, and other stakeholders that you are business-savvy by knowing your company’s net operating profit after tax. Learn why NOPAT is important and the basics of how it is calculated.

What Is Units Break-Even?

Minimize your business risks by knowing your break-even point in units. By looking at your sales price, variable costs, and fixed costs, you can figure out exactly how many items you need to sell to start making a profit.

How to Use the Common Size Ratio

Measure the common size ratio of business items on your financial statements. Learn what the common size ratio is, why it’s important to any small business, and see how it’s calculated.

How the Low Value of the Canadian Dollar Helps the Tourism Industry

Learn how the devaluation of the Canadian dollar actually helps improve the domestic tourism industry by giving international visitors greater spending power within Canada.

What Is a Cliff Vest?

Learn what a cliff vest is, and discover why it’s valuable to startups and small businesses that offer equity to employees or other non-investor stakeholders. Review an example of a cliff vest.

How to Calculate Net Present Value

Learn what Net Present Value (NPV) is, see why it is an important analysis tool to add to your business decision-making process, and see a simple example calculation.

Can Your Retail Business Benefit From Implementing Blockchain Technology?

Discover how incorporating blockchain technology into your retail business can help your small business to create smart contracts, track your supply chain, and accept cryptocurrencies.

How to Perform Cost Assignment

Discover how you can use cost assignment to determine all the costs that go into making a product. Find out how cost assignment benefits your business and potential problems.

What Are FX Fees?

Find out what FX fees are before you use your credit card during international business travel. Learn how much these can cost you and how you can get a card without them.

How to Cut Down on Shipping Costs in Your Small Business

Ship your products efficiently to keep your overall operating costs low. Packing items with care and comparing the available shipping options and discount programs streamline your company’s shipping strategy.

Taxes and Tips for Personal Trainers

Learn about all the most common personal trainer deductions that could come in handy at tax time. When you know what you can deduct, you avoid paying more than necessary on your income taxes.

What Is Average Earnings Growth?

Discover why knowing your company’s average earnings growth could mean the difference between landing potential investors and making unwise decisions for the future of your company.

Should You Use Online Accounting Software for Your Online Business?

If you own or manage a small business, it’s crucial to track your finances carefully and make sure you keep your business in the black. When this starts to become too challenging or time consuming, it might be time to look at online accounting solutions. The Importance of Good Accounting Structure Every efficient business needs […]

Choosing Between a Bank or Credit Union for Your Small Business

Since financing and financial transactions are critical elements of any small business, it’s important to make the right choice of a financial institution for your small business to work with, and there may options available that you haven’t considered. A survey of more than 10,000 Canadian small business owners revealed that credit unions often outperformed […]

Setting Up a Fee Schedule

The importance of setting up a fee schedule cannot be overlooked when you’re freelancing as an independent contractor. Pricing your services well can make the difference between earning an adequate income and not earning enough. If you don’t have an established fee schedule, you may waste a lot of time and energy struggling with pricing […]

The Benefits of QuickBooks Vs. Free Accounting Software Alternatives

QuickBooks Online is the most widely used software program for online accounting or even simple bookkeeping, however, many small businesses consider using a free accounting software alternative, such as Wave. Although some simple home business operations might find free accounting software satisfactory, a head-to-head comparison between Wave and QuickBooks reveals that QuickBooks offers a vast […]

Small Business Bookkeeping From Your Mobile Phone or Tablet

Today’s small business owners, independent contractors and startup entrepreneurs tend to live their lives on the go. A fast-paced and innovative market environment means products and services have to get to customers quickly and inexpensively. If they aren’t careful, however, mobile business owners can neglect important back-office tasks, such as accounting or customer relationship management. […]

Healthy Accounting for Fitness Professionals

Fitness enthusiasts can start a personal-training business and build lucrative careers helping others reach their health goals. The health market is booming, and the right marketing plan can lead to success. Managing the financial side of the business is equally as important, which includes accounting and tax preparation. Tax Planning Tax planning is an important […]

An in-depth Look at the Advantages of Cloud Accounting for Small Business

The demand for cloud accounting solutions for small businesses has grown significantly. Dozens of options can help business owners with payroll, invoicing, expense management and record keeping. Many of these software packages also integrate seamlessly with each other, making the accounting function of your business easier and less time-consuming. The major software solutions, such as […]

Will the CRA Change Rules for Political Activities by Charities?

Political activism by Canadian charities has been a hot-button issue since at least 2012, when the Canadian government launched five dozen audits of active charities. Allocations totaling $13 billion were then put into place to improve transparency and educate charities about restrictions on political action. The audits and funding were billed as a late development […]

How to Deal With Outstanding Invoices During Changes to Sales Tax Rates

Obviously, the hope is that your clients pay their debts on time and that you don’t reach the stage where you need to send outstanding invoices. That said, it’s your responsibility to follow up on unpaid invoices. The customer is responsible for the amount due on an outstanding invoice, as well as new charges on […]

4 Online Budgeting Tools That Help You Plan for a Rainy Day

Nearly every small business goes through difficult financial times at some point, so it’s wise to prepare for these rainy-day situations in advance. How well you prepare makes a difference in the long-term success of your business. Understanding your monthly budget and developing a plan to stick to it may save your enterprise from failing […]

Have a New Business? How to Build a Smart Budget

Launching and building a business requires hard work and a significant financial investment. You probably need some form of small business loan to get things off the ground. Even if you don’t, you could find yourself shelling out thousands of dollars or racking up costly credit card debt to get your business ready for opening […]

Importance of Tracking Your Mileage Daily

When you drive for work-related reasons, every kilometre counts. The Canadian Revenue Agency (CRA) lets you deduct your mileage when you use your vehicle for business purposes, such as visiting customers or suppliers. Tracking your driving accurately helps you make sure you maximize those deductions for savings at tax time. Benefits of Tracking Mileage Daily […]

Tax Implications of Small Business Donations to Charity

Learn about the implications of donating to charity through a business, and see whether it makes more financial sense to donate from a business or from a personal account. Review some simple examples of each.

Minimize Inventory to Decrease Costs and Free Up Working Capital

Having enough inventory to meet your customers’ demands is essential to running a small business. While having enough of your products is important, having more inventory than you can sell in the short term might be hurting your bottom line. Consider these tips to help you avoid the physical and financial burdens that excess inventory […]

What Is Your Working Capital Ratio Telling You?

As a small-business owner, it’s important for you to keep an eye on the short-term financial health of your company, because short-term challenges can turn into long-term issues. So how do you get an accurate picture of your company’s financial health? A great way to get a quick snapshot of short-term financial health and the […]

4 Tips for Improving Your Small Business Bookkeeping

Most small business owners do their own bookkeeping, and many use automated bookkeeping software such as QuickBooks Online. These programs simplify typical bookkeeping duties such as classifying and summarizing transactions for financial reporting, and they typically cut down on costs while ensuring you maintain the standards required for professional accounting. If you feel ready to […]

What Is the Difference Between Marginal Income and Marginal Income Tax?

Marginal income and marginal income tax sound similar, but they refer to vastly different concepts. If you run a business, you should understand the basic differences between these two terms. Manufacturing and production businesses, in particular, need to understand what marginal income means. Marginal Income Marginal income refers to the difference between sales revenue and […]

Formulating and Forecasting a Yearly Budget

Budgeting is one of the core functions of running a small business, but one aspect of sound budgeting sometimes goes overlooked: forecasting. Forecasting is the art of accurately predicting your future revenue and expenses to make informed business decisions. But budgeting and forecasting aren’t exactly the same, and understanding the differences between the two helps […]

Learn About Deductions and Incentives for Businesses That Purchase Electric Cars

Ontario wants to reduce greenhouse gas emissions, and the province has incentives to get business owners and individuals to help. As of 2018, the province is offering rebates worth up to $18,000 if you purchase or lease plug-in hybrids or battery electric vehicles and level two charging stations. When you buy an electric vehicle for […]

Selling Your Business: Asset Sales vs. Share Sales

If you’ve been in business for a while and you’re ready to get out, or if you’re thinking ahead and planning for your succession, one of the options you might be thinking about is selling all or part of your company. Most people know that businesses can be sold, but few, even among small business […]

Discover Whether a Merchant Cash Advance Is Right for Your Business

Merchant cash advances are an alternative to traditional bank financing. A merchant cash advance, or MCA, is an agreement that provides cash to a business in exchange for a claim against a portion of that business’ future income. An Example To understand a MCA, it helps to consider a hypothetical situation in which an entrepreneur […]

How to Manage Cash Flow for Small Business Survival

Cash flow proves critical for small business survival, and a positive cash flow can keep your margins right where you need them to be. Keep your small business running smoothly by managing your cash flow using financial ratios and automating accounting processes and by finding ways to get paid faster. Financial Ratio Analysis for Cash […]

How to Avoid Cash Flow Problems in Your Small Business

Small businesses may be hit hard by financial problems due to lack of working capital. Managing and monitoring your cash flow carefully can help you ensure you have enough operating reserves, and lets you take corrective action when faced with a cash flow crunch. That proactive approach can help your business thrive when other businesses […]

How Operating Cash Flow Ratio Indicates a Company’s Financial Health

It’s easy to see that financial statements contain a lot of data, but making sense of that data is not so easy. Teasing out connections between the numbers can unlock their meaning and help you understand where your business has been, where it’s headed, and how you can improve its prospects. Measure the Financial Health […]

Watch Out for These Payroll Errors and Accounting Mistakes in Your Small Business

The occasional bookkeeping error is inevitable, but as errors add up, you can find your small business in real trouble at tax time. Keep an eye out for these common payroll errors and other accounting mistakes, and implement policies to identify and prevent them from occurring in the first place. Omission Errors As small businesses […]

Troubleshooting and Avoiding Accounting Errors in Your Business

Even the smallest accounting errors can result in significant profit losses and inaccuracies in quarterly and yearly reports. Mistakes can also increase the likelihood of a CRA payroll audit due to revenue discrepancies. It’s important to recognize the miscalculations and correct them as soon as they occur. If you are a business owner, consider these […]

How to Minimize Accounting Errors: Hire the Right Professional

Handling your business’s bookkeeping and accounting is more complicated than balancing your personal chequebook. The accounting errors you can make without realizing it run into the dozens. You might combine your personal and business finances a big mistake. You could make math errors, fall behind in reconciling your accounts, or fail to understand the warnings […]

Utilizing Auto-Reversing Journal Entries

An auto-reversing journal entry is an entry made in an accounting journal, typically at the beginning of the reporting period, which reverses out specific entries made in the accounting period immediately preceding the current one. These types of entries are used to avoid errors in reporting in situations where some accrued revenue or expenses from […]

Four of the Most Costly Bookkeeping Errors for Small Businesses

Running a small business means operating on a smaller budget, and that makes proper bookkeeping critical in preventing and ending unnecessary financial expenditures and losses. Keep an eye out for these costly bookkeeping errors to ensure your small business runs smoothly. Not Keeping Receipts for Smaller Expenses You need to buy a lot of different […]

Put an End to Bookkeeping Errors

Consistent, accurate bookkeeping is critical to the success of any business. Besides saving money in taxes and helping to prevent audits, precise and organized bookkeeping helps you make better business decisions with less frustration. You never know when you’re going to need to reference your records. Having your books in order makes it much easier […]

Streamlining Bookkeeping to Maximize Efficiency

Keeping track of your finances is an essential part of getting your business off to a strong start. Handling those duties yourself saves you money, but it can also take a large chunk of time, especially if you don’t have a strong background in accounting. Simple changes to how you handle your small business bookkeeping […]

How to Set Up Payroll for Quick and Easy Pay Days

By the time you hire your first employee, you need to have payroll set up for your business. There are several calculations that go into the payroll process, and if you get anything wrong, you could be looking at potential tax penalties. Fortunately, when you set up your payroll the right way, it’s much easier […]

The Importance of Setting Up Payroll to Manage Employee Expenses

When you setup payroll from the start for a small business, it can help you reduce accounting errors and maximize profits. It can also help you avoid the possibilities of CRA penalties and back taxes. It’s possible to use the long method of accounting by tracking every payment and salary payable by using a spreadsheet […]

Open a Payroll Program Account to Remit Deductions

If you run a normal Canadian business, or you are an executive or trustee of some other organization with employees, you are required to withhold a certain amount of money from each employee’s paycheck for various taxes. Those taxes must then be paid or remitted, if you want to sound fancy to the Canada Revenue […]

4 Apps to Manage Your Own Payroll

Managing payroll can take a lot out of a small business, which is why so many companies seem willing to pay the cost of outsourcing it. In-house human resources departments tend to be resource-intensive undertakings, with time spent tracking time and benefits quickly growing beyond part-time commitments. Handling HR and payroll yourself, without the time […]

Tax Accounting Methods: Cash v. Accrual

In Canada, small business owners can use two different primary tax accounting methods, the cash method or the accrual method. Although you can choose whichever method you prefer, you may find that one works better than the other for your company. Larger companies don’t have a choice in the matter and must use the accrual […]

Dealing With Capital Gains Tax When Selling Your Business

If you sell your business, you may receive capital gains from the sale. Capital gains occur when you make a profit from an investment. By law, you have to report these gains on your annual tax return. Luckily, you may be able to claim deductions, or reductions in the amount of taxable income, on some […]

Don’t Forget to Include These 5 Expenses in Your Business Budget

It’s easy to overlook some expenses as you budget for the year ahead, especially if you’re a new business owner. Maybe it’s an expense that only comes up once a year, or expenses that you won’t encounter until your business starts to see some growth. Thinking about these overlooked expenses can help you plan ahead, […]

Cutting Some Slack: Ways to Create Cushion in Your Budget

Imagine rounding up to the nearest dollar every time you debit an entry from your checkbook. How much money would you find in your account to spend at the end of the year? This kind of overestimation creates slack in your budget and gives you peace of mind knowing that you’ve got a few coins […]

Budgeting for Employees: Incentives, Office Supplies, and Travel

As a small business owner, you know your employees make a big difference for your company. You want to keep them happy, productive, and boost morale. So how do you do that? Your small business payroll isn’t the only area of your budget where you can account for employee costs. Create budgets for the things […]

How to Manage and Track Inventory for Your Online Store

When you sell products in your online store, it’s easy to let inventory management slide, as virtual sales happen without the need to lay eyes on your physical inventory. However, knowing the basics of how to manage your inventory helps you avoid costly inventory issues that can leave your store rushing to fulfill orders. Attend […]

Track Your Field Reps’ Inventory With a Checklist

As a small business owner, you understand the importance of investing money in the tools of the sales trade to help your staff win new clients. Many of the items you may issue to your sales force include smartphones, tablets, and laptops. These items represent a substantial outlay of capital for your small business. But […]

Four Sales Performance Metrics for Tracking Success

When you’re running a company that depends on sales, efficiency matters. That’s where sales metrics come in — these data-based measures help you gauge your company’s sales performance. That way, you can find ways to streamline sales and increase profits in a competitive marketplace. Whether you’re a small business or a larger corporation, sales metrics […]

What Are Accruals?

For most small-business owners and independent contractors, the Canada Revenue Agency requires you to report accruals when you file your taxes, so it’s important to understand how to handle them. [Self-employed commission sales agents, farmers, and fishermen can use either [the cash or accrual method](https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/business-income-tax-reporting/accounting-your-earnings.html#ccrlmthd), but you need to use the accrual-based accounting method if […]

How to Easily Organize Your Receipts

"Keep all of your receipts" is almost the first piece of tax advice everybody learns, and for good reason; without an accurate, easily referenced record of the money you've spent, you may not be able to answer the Canada Revenue Agency's request for verification of your business expenses. Learning to organize receipts is especially important [...]

Creating an Invoice Template

Accurate and timely invoicing is an essential element of your business. If you don’t send invoices for your services, you don’t get paid. If your invoices are unclear or inaccurate, your payments may be delayed and you can lose professional credibility. Setting up a reliable, streamlined system helps to keep money coming into your business […]

Track Financial Trends with Ratio Analysis

Are you looking to build your company? Great financial management can help. When you know what’s going on with your company’s finances, you can make better decisions, keep projects profitable, and grow the company at a manageable pace. One way to understand your business’s finances is ratio analysis. This method helps you track financial trends […]

How to Track Revenue With Operating Cash Flow

Income for your small business can come from a variety of activities, including financing and investments. Everyday business operations are typically the foundation of your small business’s income, but, if you’re only focusing on the income on your financial reports, you might get a misleading picture of your company’s health. This is why it’s important […]

Direct or Indirect Cash Flow: Which Is the Right Fit for Your Business?

Learn how to use the indirect method to present cash flows from operations and the advantages the indirect method offers over the direct method.

How Free Cash Flow Affects Your Business

Learn the components of free cash flow (FCF), what it means, and how to calculate it using accounts from your financial statements.

Tradesman Tips for Budgeting

Build a budget that works for solo tradesman careers such as construction, renovation, repair, and delivery.

Working With Auditors: Auditing and Attestation Options

If you do the bookkeeping for your small business, growth can sometimes make assistance from a professional accountant or accounting firm necessary. Outside help may prove especially essential if you need professionally prepared or verified financial statements. Before signing any agreements, it’s important to understand the various services they offer, the differences between these services, […]

Which Payroll Solution Is Right for Your Business

No matter the number of employees, the payroll function of a business is often much more arduous and costly than it needs to be, especially when your business is growing. With so much at stake, including legal, tax, and regulatory issues, employee morale, cash flow considerations — not to mention overhead costs — it is [...]

What Is IFRS?

When you run a small business in Canada, efficient record keeping and information exchange requires uniform guidelines for handling financial reporting. That’s the thinking behind International Financial Reporting Standards. What Is IRFS? IRFS provides a set of accounting standards developed by the International Accounting Standards Board. These standards offer companies around the world guidance on […]

What Is a Small to Medium-Sized Enterprise (SME) in Canada?

Small and medium-sized businesses have different definitions all over the world. In Canada, the following definitions apply: Small business: A company with at least five paid employees, but fewer than 100 paid employees. Medium-sized business: A company with at least 100 paid employees, but fewer than 500 paid employees. It is estimated that approximately 98 [...]

Using Accounting Ratios to Understand Your Business

As you build a small business, it’s important to measure your company’s financial health. That’s where accounting ratios come in — these calculations help you make sense of your accounting figures. Measuring them regularly gives you a clear picture of your debt, income, and operating costs, so you can make informed business decisions. Using Profitability […]

Use Liquidity Ratios to Better Understand Your Business

Liquidity ratios measure the ability of your business to meet near-term financial obligations, such as loan payments, rent, and payments to suppliers. Overall, various liquidity ratios show your company’s short-term financial health. Learn more about three important liquidity ratios and what they mean for your business. What Are Liquidity Ratios? Liquidity ratios measure your company’s […]

How to Use DuPont Analysis to Analyze Return on Equity

DuPont analysis, which is also known as the DuPont identity or the DuPont model, is a method you can use to break down your company’s return on equity into three parts so you can have a better understanding of its value. This model doesn’t simply focus on your company’s net income. Instead, it breaks down […]

Understanding the First-Time Donor Super Credit for Charitable Donations

Canadians are generous with their charitable giving. One reason is that Canadian tax laws grant people who donate to charity generous tax credits for their donations. One particular credit, called the first-time donor super credit (FDSC), is an extra enticement for first-time donors or those who haven’t donated to charity in a while. Under the […]

Cash Method Vs. Accrual Method

The two primary accounting methods used to produce financial records generate materially distinct reports for your small business. This is because the two methods have numerous differences, including the requirements to use them. Although both can be used and are accepted by external users, you may find that your small business benefits from one more […]

Small Business Deductions: Deducting Meals, Entertainment, Parties, Leisure Activities and the Insurance that Protects Your Interests

Are you looking for tax deductions for your small business? Some tax-deductible expenses are all too easy to overlook: meals, entertainment, leisure activities and insurance, which is something you have to purchase anyway. Fortunately, you can write off many of this expenses to save some dollars on your tax bill Meal and Entertainment Expenses With […]

Using Your Finished Goods Inventory to Improve Small Business Planning

Unearth the importance of tracking finished goods inventory, how it differs from other inventory accounts, and how it is reported on your financial statements.

How to Deduct Meals and Food

Learn how if you’re burning calories as a bicycle courier, the Canada Revenue Agency offers an extra deduction for your food costs.

How to Deduct the Investment Tax Credit

Looking for ways to lower your tax liability? See if you qualify for the diverse investment tax credit. Both individuals and corporations may qualify.

Amending Your Tax Forms and Adjusting Financial Statements

Made a mistake on your tax return? Get an overview of the steps to amend your personal, business, and corporate tax returns.

Small Business Deductions: Scientific Research and Experimental Development (SR&ED) Tax Credit

Read about the Scientific Research and Experimental Development program. Learn how eligible expenses can lower taxable income and earn you a tax credit.

What Is a Business Number?

What is a business number? Read about this nine-digit number used when communicating with the Canada Revenue Agency about your business.

Small Business Deductions – Allowable Business Investment Loss

What are allowable business investment losses? Learn how ABILs help lower taxable personal and business income.

3 Ways to Minimize Losses on Damaged Merchandise

Limit your losses on damaged merchandise. Use one of these three strategies to recoup what you can, depending on the level of damage.

4 Tips for Successful Inventory Management

Get these four tips on how you can save money by more effectively managing the inventory of your small business.

Accounting for Perishable Inventory

Opening a food truck or a new grocery store? Here’s how to accurately account for your perishable inventory.

Inventory Management: Push and Pull Systems

Learn the importance of inventory management and the fundamental concepts, advantages, and disadvantages of the push and pull systems of inventory management.

How the Retail Method Keeps Your Inventory Management Straight

Learn what the retail calculation method is and how to use when you need to determine the value of your current inventory.

Managing Inventory Audits for Consignment Boutiques

Learn to keep an accurate count of items in your consignment boutique to make inventory audits pain-free.

What Is Liquidation, and How Can it Help Your Small Business?

Find out what liquidation means to product sellers, and discover ways to liquidate your inventory quickly.

Accounts Payable Turnover

Uncover what your accounts payable turnover is, how to calculate it, and why it is an effective tool is managing your payment practices.

AI for Accountants and Bookkeepers

Understand the ways in which artificial intelligence is transforming the accounting industry, and learn how to use AI to enhance your accounting career.

Five Disruption Trends in the Accounting Industry

Learn the five trends disrupting the accounting industry so you can position your firm to stay ahead of competitors while adding greater value for your clients.

Gym Management: How to Manage the Finances of Memberships

Learn how to manage monthly and yearly gym memberships to keep your business growing and thriving year-round.

What Is a Capital Lease?

Learn what a capital lease is, how a lease qualifies as a capital lease, and why it’s different than an operating lease.

What Is an Arrears Balance?

Understand what makes up an arrears account balance and what potential negative results can come from having a growing arrears balance.

What Is Free Cash Flow?

Learn what free cash flow is and why this number is important in gauging the financial health of your business.

What Is Operating Cash Flow (OCF)?

Learn what operating cash flow is and how it is calculated, and its importance to business owners and investors.

What Is Times Interest Earned (TIE)?

Learn what times interest earned is and why it’s important for business. Also learn how to calculate it, and see an example.

What Is Trailing 12 Months (TTM)?

Uncover the meaning of Trailing 12 Months and how this financial reporting method is more helpful than year-to-date or current fiscal year reports.

Burn Rate: How Much Cash Does Your Company Use?

Uncover the meaning of burn rate and how to calculate your burn rate, and ways you can improve your long-term cash flows.

What Is the Bottom Line of a Company?

Find out what the bottom line of a company is and what small business owners can do to increase the bottom line of their businesses.

What Is the Current Ratio?

Learn what the current ratio is and why it is important for business. Also learn the ratio’s formula, and see a sample calculation.

5 Strategies for Setting Up Passive Income

Make money while spending minimal time working when you follow one of these strategies for generating passive income.

How Accountants Can Help Increase Sales

Learn how accountants can increase profit margins to grow your small business. Get the most out of your accounting services to maximize sales.

How to Price Your Restaurant Menu for the Highest Return

Learn the ins and outs of pricing your restaurant’s menu items, including calculating your costs, factoring in demand, and pricing tricks to make more money.

Sales Forecasting for Retailers

Learn how sales forecasting for retail helps your business. Make accurate forecasts quickly using previous sales data.

How to Record & Account for Deferred Expenses

Defer your expenses until they actually occur to enhance the consistency of your financial statements and your ability to make smarter decisions.

How to Track Prepaid Expenses for Your Business

Enhance your financial statements by recognizing prepaid expenses. Learn the journal entries for setting up a prepaid and how to eventually record the expense.

Accounting for Interior Designers

Manage your business’ finances with these tips on accounting for interior designers. Learn how to track your expenses and time to avoid mistakes.

Construction Industry: Learn About The Contract Payment Reporting System

Learn about the Contract Payment Reporting System, when it applies, what payments to report, and when and how to report to ensure your clients are compliant.

How to Bring Personal Assets Into Your Small Business

Using personal assets in your business? You may need to formally account for the transfer. Take a look at that process.

Internal Auditing: Tracking Expense Reports

Learn how to avoid a CRA audit and prevent fraud by implementing substantive internal audit procedures on business expenses.

Move Your Accounting to the Cloud

Convert to a cloud accounting system to save time, view financial information instantly from any location, and store information securely without clutter.

How to Segregate Online Sales & In-Person Sales

Learn how to separate the financial records for your online and in-person sales, and review reasons why separating records helps with financial analysis.

How to Track Cost of Goods Sold for Your Business

Learn what cost of goods sold is and why it is important for e-commerce sellers to track, and read about some tips to measure it.

How to Track Gross Margin for Your E-commerce Business

Learn the importance of tracking gross margins, and see why e-commerce business owners should care about this metric.

What Is a Prepaid Expense?

Find out what a prepaid expense is and how to record it in your accounting system and claim it in your tax return.

What Is Arm’s Length?

Understand what defines an arm’s length transaction, the importance of upholding this concept, and how this is useful in evaluating your business.

What is LIFO Accounting?

Last in, first out accounting is a way of assigning costs to inventory. Find out what it is and its impact on small businesses.

How Historical Cost Accounting Affects Your Small Business

Understand the uses of historical costs, how to determine your historical costs, and what the difference is between historical costs and fair market value.

Correcting Overpayment to Employees

Correct an overpayment to an employee by addressing the repayment, writing a repayment letter, and notifying the CRA. Correct an overpayment to an employee by issuing a T4 slip, writing a repayment letter, and notifying the CRA.

Registering for the GST/HST: Claim the Input Tax Credit for Inventory on Hand

Learn how to claim an input tax credit for inventory on hand when you register your business for the GST/HST

Making Rental Payments to Employees Who Use Their Own Tools

Remember to apply the rental payments you’ve made to your employees for using their own tools on your T4 form at tax time. Here’s how to do it.

How to Avoid Paying GST on the Acquisition of a Business

Learn the legal way to avoid paying the GST/HST when purchasing a business by making a joint election with the seller.

9 Tips for Filling out the T4

Check out these tips on dealing with union dues. Learn when dues are deductible, and review the rules on paying dues for your employees.

What is an Operating Lease vs. a Capital Lease?

Learn what an operating lease is, how it differs from a capital lease, and how to treat each lease for accounting and tax purposes.

How to File T2125

Learn the rules surrounding the reporting of inventory in your statement of business income for a sole proprietor or a partnership.

New Developments in Taxation for Corporations in Alberta

Read about updates to Alberta’s corporate income tax rules. Look at the low rate for small businesses, and learn about provincial credits.

Using Form RC4288 to Request Relief From Penalties and Interest

Check out how to request relief on tax penalties and interest. Review situations where the Canada Revenue Agency grants waivers on interest and penalties.

Quebec Tax Guide: Tips and Gratuities

Familiarize yourself with the three categories of tips and gratuities, their tax implications and Quebec’s unique requirement for declaring tips.

Small Businesses Tax Credits in Ontario

Check out tax credits for small businesses and corporations in Ontario. Review credits to offset costs of training workers, producing books and films, and more.

Switching Personal Assets to Business Assets: A Guide for the Self-Employed

Want to use personal assets for work? If you’re self-employed, you can claim a business deduction. Check out the process and how to calculate your deduction.

Tax Tips for the Self-Employed Hairdresser or Stylist

Are you an independent hair stylist or barber? The Canada Revenue Agency has special rules just for you. Check out what you need to know about taxes here.

Small Business Deductions: What Applies and Do I Qualify?

Filing taxes for your corporation? Don’t forget to claim the small business tax deduction. This deduction helps lower federal and provincial corporate tax.

How to Calculate Payroll Taxes

Learn how to use the Canada Revenue Agency’s Payroll Deductions Online Calculator to avoid mistakes when calculating employee pay deductions.

How to Calculate Taxable Automobile Benefits for Your Employees

Check out the Canada Revenue Agency’s free Automobile Benefits Online Calculator, and learn how it can determine employees’ vehicle benefits by pay period.

How to Contact the Canada Revenue Agency and Request Help

Learn about the features and functionalities of the Canada Revenue Agency’s My Business Account online portal.

What Are Provincial and Territorial Corporate Tax Rates?

What is provincial or territorial corporate tax? Do you qualify for the low or high rate? Take a closer look at the details of provincial and territorial tax.

What Is a Corporation Key?

Learn about the corporation key and how it can be used with a corporation number to gain access to online transactions at the Canada Revenue Agency.

What Is a Standby Charge?

Compare the benefits of providing a company automobile with the cost of having employees use their own cars for business, and determine the best option.

What is Adjusted Cost Basis (ACB)?

Learn what adjusted cost basis (ACB) is, see how to calculate it, and learn why it can have an impact on your business.

What Is an Inclusion Rate?

Review the definition of inclusion rates. Learn how inclusion rates apply to capital gains and losses.

How to File T4, T4A, and T4A-NR Slips

What is a T4A slip? What is the difference between a T4A and a T4A-NR slip? Review the definition of these slips and employers’ obligations.

What You Need to Know About the Small Business Job Credit

Learn how the Small Business Job Credit affects your clients and why timely T4 filing and proper SBJC tax treatment assures optimum tax benefits and compliance.

Who Needs to File A Tax Return?

Learn the rules, dates and pitfalls surrounding the filing of a tax return in Canada for individuals, corporations and partnerships.

Accounting Tips: Document Your Receipts

Want to attach a receipt to QuickBooks? Check out the process here, and learn about apps that make it easy to scan and organize receipts.

How to Incorporate Indirect Costs Into Pricing

Learn what indirect costs are, examples of common indirect costs, and how to incorporate these costs into your pricing.

Invoicing Tips: Schedule and Automate Your Invoicing or Billing Process

Check out how bill payment calendars and scheduled billing can help your business. Review the time and money-saving perks of these types of services.

When Goods Are No Good: How to Manage Obsolete Inventory

Discover ways to deal with obsolete inventory that help you grow your business without waylaying your bottom line.

Should You Adopt Cash Application Automation?

Look at some of the financial and operational advantages your small business can gain from adopting cash application automation to handle accounts receivables.

3 Top KPIs to Measure your Retail Store’s Performance

Learn about three key performance indicators (KPIs) you can use to evaluate your retail store operation.

Accounting for Fitness Professionals in Canada

Accounting for personal trainers and fitness professionals doesn’t have to be confusing. Here are some tips to deal with the unique qualities of the industry.

How to Use Activity-Based Costing

Discover the benefit of using an activity-based costing system, how to use cost drivers, and how this system can help you with product pricing.

Benefits of Paying Yourself Dividends

Learn about the advantages and the inconvenience of paying yourself a dividend instead of a salary as the owner of an incorporated small business.

Essential Bookkeeping and Accounting Principles

Handling the books for a small company? Take a look at these key accounting and bookkeeping concepts, and review how they create accurate financial records.

Establishing a Petty Cash Process for Convenience

Understand the importance of correctly setting up a petty cash fund and how this lockbox system can provide your company flexibility.

Changes in Bookkeeping Going From a Sole Proprietorship to a Corporation

Learn the impact of transitioning from a sole proprietorship to a corporation on your bookkeeping and management.

How to Manage Lump-Sum Purchases of Assets

What is a lump-sum purchase? Learn about buying multiple assets for a single price, and review tips on accounting for these transactions.

Pros and Cons of Online Banks

Learn the pros and cons of online banking accounts, and determine whether switching to an online bank is right for your business.

Understanding and Accounting for the Purchasing and Procurement Cycle

Understand the purchasing cycle and apply quality controls and accurate recordkeeping to ensure timely and efficient operations while reducing fraud and waste.

Is it Deductible? 7 Items You Can’t Claim as Business Expenses

Check out this list of items that are often mistakenly claimed as business deductions. Audit-proof your return by not claiming these costs erroneously.

The Difference Between a Charity and Nonprofit in Canada

Help nonprofit or charitable organizations understand how Canadian tax laws affect their operation and relationship with donors.

Taxes and Tips for Manufacturers

Learn about the accelerated capital cost allowance and how Canadian manufacturers can use it to save on investments in machinery and equipment assets.

Understanding Different Tax Rates: Marginal vs. Effective

Understand the difference between marginal and effective tax rates, and learn how this distinction can help with business planning.

Double Taxation: What It Is and What to Do About It

Avoid international double taxation with help from the Canadian Competent Authority and lower your tax rate with the Small Business APA Program.

What Is EBIT?

Discover how to calculate your EBIT, what this calculation means, and why it is better than net income for evaluating a company.

What Is an Asset Turnover Ratio?

Learn how to calculate your asset turnover ratio, what this metric means, and how it can help you better compete against rival companies.

Cost Accounting: Prime Costs vs. Conversion Costs

Learn how to calculate prime costs and conversion costs, and understand how these two measurements can help your company’s pricing and operating policies.

Financial Analysis: Cash-to-Cash Cycle

Understand how to calculate the cash-to-cash cycle to gain a deeper understanding of purchasing, inventory management, and sales operations.

Financial Variance Analysis: How to Calculate Variances

Implement a variance analysis of materials, labour, and sales to gain insight regarding why actual financial results are different than budgeted amounts.

How to Incorporate Present and Future Values

Plan for the future more accurately by understanding the time value of money, and learn to calculate present value and future value.

Know Your Hurdle Rate Before Starting a New Project

Understand how hurdle rate determines a project’s profitability as it relates to zero net present value and the project’s financing rate.

Projecting Revenue in Cyclical Industries

Forecasting revenue for a cyclical business presents challenges, but it is crucial to do so to run your enterprise effectively.

Does Your Business Pass the CRA’s Profit Test?

Pass the CRA profit test to take advantage of Canada’s business tax credits and deductions while your grow your business towards profitability.

How to Measure the Effectiveness of Your Business Model

Learn to measure the effectiveness and strength of any business model with this simple accounting calculation.

What Is Accounts Receivable Turnover Ratio?

Learn what the accounts receivable turnover ratio is, why it is important for your business, and see an example calculation.

How to Reconcile Your Petty Cash

Simplify cash management with accurate petty cash reconciliation records. Monitor spending and protect your bottom line by reconciling your cash box records.

How to Keep Regular, Up-to-Date Records of Your Business’s Income and Expenses

Avoid the last-minute year-end paper chase by keeping regular, up-to-date records of your small business’s income and expenditures.

How to Maintain Financial Control & Keep Track of your Finances

Setup strong financial controls to understand your business’s profit and loss. Cloud-based accounting software can help keep your business’s books in order.

Opting for an Unnatural Fiscal Year

Understand the benefits of electing an unnatural fiscal year that does not align with a calendar year ending in December.

What Is a CPA?

Learn about the new CPA designation for professional accountants and how the merger of Canada’s major accounting bodies benefits small business owners.

Using Different Pay Codes

Use pay codes to organize your payroll records, and find out how the right app can help you achieve this task.

Taxes and Tips for Landlords and Property Owners

Check out these five often-overlooked write-offs for legal fees and other expenses to help landlords save money at tax time.

Quebec Health Services Fund (QHSF) Rate Reduction

Discover the rate reduction for the Quebec Health Services Fund. These changes will make small and medium-sized businesses more competitive.

Taxes and Tips for Day Care Providers

Review important deductions for day care providers, and make sure that you are maximizing your deductions.

CRA Tax Relief and Tips for Farmers

Forced to sell livestock due to flooding or droughts? Check out the Canada Revenue Agency’s income deferral program for these situations.

How to Calculate Capital Cost Allowance on Form T2125

Did you make big purchases for your business during the year? Check out the steps for claiming a portion of those capital expenses on your tax return.

How to Make Payments to the CRA

Need to pay tax to the Canada Revenue Agency? Simplify the process, and pay multiple taxes at once with My Payment. Here’s an overview of how the program works.

Tax Reduction Tips for House Cleaners

Independent cleaners can write off the cost of cleaning supplies and buckets, but that’s not all. Check out these tips for saving money at tax time.

Tax Implications of Incorporating Your Small Business

Learn about some important tax consequences when you’re incorporating a small business that was previously operated as a sole proprietorship.

Benefits of Using the General Index of Financial Information

File your corporate taxes using the General Index of Financial Information to comply with Canadian regulations and streamline your paper or electronic filing.

Using the CRA’s New LOI and LOAR Programs to Assist Your Clients

Learn how your clients can take advantage of the LOI and LOAR programs to avoid common taxpayer mistakes and measure their business performance.

What Is a Refundable Tax Credit?

Reduce your tax bill or get a refund when you claim refundable tax credits such as the Working Income Tax Benefit or Eligible Educator School Supply Tax Credit.

How to Deduct Loan Interest

Claim deductions from business interest on loans to reduce your tax burden. Understand which payments qualify before you file.

Cash Flow Forecasting Software: The Top Three

Understand the benefits of using cash flow software. Find out how it can save you time, provide better information, and strengthen your vendor relations.

What Is a Rainy Day Fund?

Setting up and maintaining a rainy day fund takes discipline, but it can save your business when the bad times hit.

Profit Margin: The Low, the High, and How to Track Yours

Understand the meaning of a low profit margin, which industries typically have lower margins, and how this can increase a company’s risk.

5 Important Bookkeeping Considerations for Property Management Companies

Review tips to help you face the unique accounting and bookkeeping challenges of running a property management company.

Backing Up Your Electronic Accounting Records

Use cloud-based accounting software to electronically store vital accounting records easily and safely, in case you get a visit from the CRA.

Digitalize Employee Reimbursement

Simplify your employee expense reporting by taking the process into the cloud, which makes life easier on accounting and sales personnel alike.

Four Reasons Why Bookkeepers Are a Money Saver for Your Business

Discover four ways a good bookkeeper can save your small business money and increase your bottom-line profitability.

How Often Do You Need to Create Financial Reports? Month vs. Quarter vs. Annual Report

Analyzing regularly prepared financial statements is an important part of measuring your business’ performance.

Use Project Coding to Organize Records

Use project coding to track specific information, Bill customers more accurately, and have flexibility in your reporting.

Use Recurring Invoices to Save Time

Do you have clients with the same orders or bills every month? If so, it’s possible to save time with recurring invoices. With the right software, it’s easy.

Use the Cash Method for Easier Accounting

Understand the advantages of the cash method of accounting and what types of businesses are eligible to elect this bookkeeping option.

Using Separate Accounts for Amounts Held in Trust

Learn why using a separate bank account for amounts deemed held in trust is a safeguard against penalties and interest.

What Are Cash Equivalents?

Check out the definition of cash equivalents, and review tips for deciding how much cash and cash equivalents your business needs on its balance sheet.

What Is GAAP?

Learn about generally accepted accounting principles and why they have been adopted over the last decade.

What Is a Narrow Profit Margin?

Learn how to calculate profit margins, and read the definition of a narrow profit margin. Review strategies for boosting profit margins.

Don’t Give Employees Gift Cards as Rewards

Buying a gift for an employee? You may want to avoid gift cards. Learn about their tax liability for payroll and review other options.

Appealing an Assessment Before the Tax Court of Canada

Learn how to file an appeal in the Tax Court of Canada and what the filing delays are. Learn the difference between the informal and general procedures.

Tax Tips for Consultants and Independent Contractors

Learn about how personal service businesses, incorporated employees and the small business deduction are interdependent.

Know the Penalties for Not Paying Taxes on Time

Review the penalties for filing your tax return late. Figure out what to do if you’re missing some of the forms you need to file.

The Small Business Owners Guide to Provincial Sales Tax (PST, GST, HST)

Learn the basic rules for collecting GST/HST when selling goods or services to clients outside Canada.

How to and When to Change Your Reporting Period

Learn when you’re required to change your GST/HST reporting period, when you can change your reporting period voluntarily, and how to do it.

What Are the Changes to Taxes in 2019?

Wondering what’s happening with the tax code? Use these tips to stay current so you can avoid surprises at tax time.

Understanding Taxes for Artists and Performers

Learn the special tax rules that apply to self-employed and salaried artists and performers in Canada.

How to Take Dog Tax Deductions in Canada

Learn when dog-related expenses are deductible. Identify the difference between medical write offs for service dogs and business deductions for working dogs.

Deducting Miles & Student Loans

Don’t miss out on your mileage deduction. Uber drivers, learn how to track mileage with a log book or an app.

Your Master Guide to Tax Years, Important Deadlines and Payment Info

Learn the difference between a calendar year and a tax year. See how businesses can change their fiscal year-end.

Differences Between Perpetual and Periodic Inventory Systems

Discover the difference between a perpetual inventory method and periodic inventory method, and determine which inventory system is best for your company.

Unearned Revenue: Accounting for Ticket Sales

Learn when to record ticket sales as revenue, and why you treat unearned revenue as a liability before you can carry out the event related to the ticket sales.

Little-Known CRA Tax Deductions and Credits

Review some of the lesser-known deductions and tax credits for small business owners in Canada. Learn about credits for apprentices, film making, and more.

How to Implement a Just-in-Time (JIT) Inventory System

Learn three elements of a just-in-time inventory system that are essential to promoting the long-term success of a company’s inventory system.

Financial Planning: Creating a Master Budget

Plan for future business expansion and product development by creating a master budget, and understand the components that make up this planning tool.

How to Avoid Costly Late Fees

Paying late fees, finance charges and late payment penalties can significantly impact your bottom line. Learn how to avoid these unnecessary charges.

How to Perform Job Costing

Review the basics of job costing. Learn how to track direct labour and materials for a job, and look at one method of allocating overhead with job costing.

Understanding What Industry Beta Means

Learn the financial concept of beta, how to calculate it, and why it is important for your small business.

The Potential Disadvantages of Holding Cash

Examine your small business’s cash flow situation in light of the potential disadvantages of holding too much cash.

Understanding Cost Behaviour Classifications

Learn the difference between variable, fixed, and mixed costs. Discover how these cost classifications can be used in internal reporting and pricing.

Weighted-Average Cost of Capital: Average Return Expected by Investors

Learn how to achieve an optimal level of weighted-average cost of capital by changing the financing mix of equity and debt.

What is Depreciation?

Read the definition of depreciate, and review what a depreciable business asset is. Look at different ways of accounting for depreciation.

How to Effectively Manage Working Capital

Managing your small business’s working capital effectively is critical to the success of your business venture.

What Are Cash Reserves — and Why Do You Need Them?

Discover the downsides to holding cash reserves and safe alternatives that exist to maximize the benefit of your emergency fund.

Use Lockbox Processing to Streamline Receivables

Review the advantages and disadvantages of lockbox processing, and learn how lockbox processing can help with automated bank reconciliation.

Net Revenue vs. Gross Margin vs. Net Income

Learn how to differentiate net revenue, net profit, and net income. Plus, understand the situations in which each figure is most useful.

Avoiding Transposition Errors

Review the definition of transposition errors. Learn how to minimize transposition errors, and check out methods for spotting these errors.

How to Adhere to the Accounting Equation

Verifying the accounting equation is in balance is a key step to ensuring your financial statements are accurate.

Business Processes: Accounts Payable Documentation

Understand the importance of retaining documentation relating to purchases, regardless of whether a purchase order is utilized.

How to Perform a Bank Reconciliation

Enhance your internal control processes by incorporating a monthly bank reconciliation to determine cash inconsistencies.

Classifying Assets on a Balance Sheet

Embrace asset classifications on the balance sheet to provide information for internal analysis and better customer service to external user.

How to Standardize Your Chart of Accounts

Utilize a standardized chart of accounts to improve consistency, clarity, and convenience of your financial records.

Utilize Half-Year Depreciation as a Tax Deduction on New Equipment Purchases

Learn the concept of half-year depreciation, what benefits this option presents, and in which situations this allocation option is most suitable.

How to Utilize Three Way Matching

Learn about three-way matching. Review the benefits of this accounting technique, and learn how to use three-way matching without causing unnecessary delays.

Keeping Inventory Costs Manageable

Incorporate inventory management techniques to minimize the period costs associated with ordering, receiving, and holding items for sale.

SKUs and Barcodes – and How They Boost Your Small Business

Understand the differences between SKUs and barcodes, and find out how to use them effectively to make your small business operate more smoothly.

Use Purchase Order Software to Increase Efficiency and Profits

Eliminate the monotony of creating, recording, and tracking purchase orders, and simplify inventory management with integrated purchase order software.

What Is a Reorder Point?

Discover the benefits of knowing your reorder point, including minimized inventory maintenance costs, smaller ordering fees, and more efficient operations.

5 Best Ways to Invest Excess Business Cash

Does your business have extra cash? Check out these tips for investing excess capital, and explore ideas related to improving your business or buying a new one.

Why You Should Perform a Weekly Bank Reconciliation

Learn the importance of performing a bank reconciliation on a periodic basis to detect differences between your accounting records and your bank statement.

Why You Need to Know Customer Acquisition Cost and Lifetime Value

Incorporate the calculation of customer acquisition cost and customer lifetime value into your financial analysis to understand your long-term growth prospects.

Understanding Tax Obligations for Your Holiday Rental Property

Check out your tax obligations when you rent out a property on AirBnB, VRBO or a similar site. Review the basics of rental income and expenses.

Do U.S. or Canadian Inventory Valuation Methods Improve Balance Sheets?

Learn about inventory valuation methods used in the United States and Canada, and which method may improve the balance sheet of a border company.

Linear vs. Exponential Line Items

Learn the difference between linear and exponential growth and see how these ideas can be used to create better business forecasts.

What Is a Compound Annual Growth Rate?

Learn what a compound annual growth rate is (CAGR), how to calculate it, and see an example calculation.

What Is Days Sales Outstanding?

Learn what days sales outstanding is and how to interpret it. Review the days sales outstanding formula and an example calculation.

What is An Audit and How Does It Work?

Discover when the Canada Revenue Agency may audit a business and what is likely to occur during an audit of a business.

Claiming the Lifetime Capital Gains Exemption

Learn how small business corporations can qualify for and claim the lifetime capital gains deduction under the Canada Revenue Agency rules.

What Is an Excise Duty?

Find out what an excise tax is and how a high excise duty may affect businesses that produce certain products.

Tools to Track the Profitability of Your Store’s Inventory

As a retailer, it’s important to understand how much profit you’re earning on your inventory. To do that, you need inventory management apps, QuickBooks Online accounting software, and some basic knowledge about the best metrics to use. Why Is Your Inventory Count So Important? It’s important to count inventory correctly, because this figure is used […]

How to Stop Payment on a Cheque

If you issue a cheque from your business account and you need to cancel the transaction for any reason, you may want to need to do a stop payment. Your bank may assess a charge for this service, but the process is uniform across different financial institutions. Gather the cheque number, payee, and amount – […]

Overtime Rules Canadian Employers Need to Know

Canadian labour laws are set up to protect workers from being overworked and underpaid, and those laws extend to overtime. If your employees work over a certain threshold, you are required to pay them extra money, and it is critical to understand these laws so you are in compliance with them. Defining Overtime Generally, after […]

Protected Employee Leaves in Canada

The Government of Canada provides a wide range of protected leaves that give employees time off work for a variety of circumstances. These various leaves all have one thing in common; they guarantee the employee will keep his or her job and current pay when returning to work. Maternity Leave Maternity leave is unpaid and […]

Review Changes to Source Deductions Thresholds Annually

The government of Canada revises income thresholds and limits related to source deductions on an annual basis. To ensure you are withholding the right amount of source deductions from your employees and that you are contributing the correct amount to the Canada Revenue Agency, review these changes annually on the CRA’s website. Ideally, you should […]

Setting up a Public Accounting Practice in Canada

As an accountant, you might consider starting a public accounting practice in Canada as a fulfilling and rewarding career choice. Are you a new accountant? Before launching into a public accounting practice, it’s likely you need the Chartered Professional Accountant (CPA) designation. These steps should help you get your public practice up and running. Step […]

Things to Consider Before Switching Employees from Hourly Pay to a Salary

There can be advantages to switching an employee from hourly to salaried pay, but this shift isn’t the right decision in every circumstance. When trying to decide if it is the right time to bump your employee from hourly pay to a salary, there are several elements you should take into account. Overtime Pay Salaried […]

What Is a Tariff?

A tariff is a tax imposed on goods or services imported from another country. The government of Canada can impose tariffs, also known as duties, based on a percentage of the import’s value. Provinces can also impose tariffs on certain goods, such as beer, wine and tobacco. Understanding tariffs can help give your business a […]

How to Use the Weighted Average Method to Measure Costs of Production

Use the weighted average method of measure the average cost of production of an item your company makes. Also known as process costing, a weighted average takes into account any changes during production that may change the cost or price of your items. If something costs more towards the end of a production run, a […]

What is a Financial Institution Number?

A financial institution number is a unique identifier assigned to each specific bank or financial institution. This number, used during interbank transactions, is sometimes a piece of the routing transit number to identify the institution, branch location, and customer account. Most FINs are three digits in length; however, the placement within the routing number varies […]

What Is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee (LIT) is a licensed professional who can help you if your small business has debt problems. An LIT can advise you on potential legal proceedings as well as make suggestions to try to avoid insolvency or bankruptcy with regards to your creditors and investors. How a Licensed Insolvency Trustee Works An […]

What Is a Trial Balance?

A trial balance represents a simple way to check to see if your debits equal your credits over several accounts within your company. You usually run a trial balance toward the end of a financial period, whether at the close of a month, quarter, or year. This type of balance sheet prepares your small business […]

What is an Aged Accounts Payable Report?

An aged accounts payable report, sometimes called an accounts payable aging report, outlines how many payments you have that are coming due. An ideal report shows you the due dates of numerous invoices. The goal of an aged accounts payable report is to give your business an idea of how much money you need to […]

What Is Invoice Factoring?

If you’re waiting for payment on a stack of invoices and need to boost your cash flow quickly, you might consider invoice factoring as a financial option for your business. What Is Invoice Factoring? Invoice factoring is a form of short-term financing for businesses. You sell your invoices to a factoring company, and it gives […]

What is the GST Refund?

The general sales tax (GST) refund refers to several GST credits or rebates. You don’t want to miss out on getting yours if you’re eligible, so you should learn more about them. What is the GST/HST Credit? The GST/HST credit is a quarterly payment for Canadians who earn less than the GST credit income threshold. […]

When to Claim Capital Cost Allowance

The Canada Revenue Agency lets you deduct the costs of depreciable property with the capital cost allowance. You can claim this tax deduction over a span of several years for your depreciable property’s cost. Your depreciable property consists of long-term assets that become obsolete or lose value over time, such as furniture, buildings, vehicles, or […]

Why Customer Lifetime Value is the Lifeblood of Your Business

Most owners understand that their customers are integral to their business’ success, but not many can actually place a value on each, or the average, customer. This is why the concept of customer lifetime value, or CLV, is so important. A business that calculates and tracks its customer lifetime value is able to realign processes, […]

Managing Multiple Small Business Incomes at Once

Many entrepreneurs advocate establishing multiple streams of income as the road to financial success. But how do you manage multiple small business interests at once? To make the multiple streams of income approach work, it’s a good idea to proceed cautiously and with careful, deliberate planning so you don’t spread yourself too thin. With a […]

Using the Cash Conversion Cycle in Cash Flow Analysis

Small wholesale or retail businesses require a delicate balance between inventory and cash flow. With too little inventory, you run the risk of not fulfilling customers’ needs, but if you have too much inventory, you might experience cash flow crunches. To avoid this situation, it helps to know how long you have to hold on […]

Understanding Loss Determination

Do you disagree with the business losses assessed by the Government of Canada? Are you looking for a way for the tax department to reconsider any of your business losses? If so, then you should consider requesting a loss determination. If you file a Canadian income tax return with a loss and receive a nil […]

What Roles Do Bookkeepers and Accountants Play for Small Businesses?

Your business’s financial records hold the key to your success. From filing accurate taxes to helping you make informed decisions, those records influence the direction of your business. Both bookkeepers and accountants share the same goal of helping small businesses with their financial functions, but they’re responsible for tasks in different stages of the accounting […]

Should You Use Payroll Cards in Your Small Business?

Payroll cards are prepaid debit cards you can use to pay your employees. Instead of issuing a cheque, you simply load your employee’s pay onto a payroll card. The employee can then use the card for ATM withdrawals or to make purchases at shops that accept credit cards. There are pros and cons to payroll […]

Tips for Changing Payroll Frequency

Switching to less-frequent payroll periods can save time and money on payroll processing costs, but to navigate the change successfully, you need to recalculate payments, make changes to your accounting software, and communicate with your employees about the change. Weekly to Biweekly Conversions If you’re changing from a weekly to a biweekly pay period, the […]

What Is a Deferred Tax?

Deferred taxes are current tax payments that you push into the future, often via an investment or retirement account. Like deferred expenses, tax deferrals in Canada have two primary advantages: Due to inflation, a dollar today is worth more than a dollar tomorrow, so it’s better to pay in the future. Instead of being controlled […]

What Are Convention Expenses?

Looking to learn something new in your industry? Business conventions are a great way to expand your knowledge and network while you learn. Or maybe you’re setting up a booth at an upcoming business convention. Whatever the reason, going to conventions can give you a tax deduction based on the costs of the trip. What […]

What to Consider With Small Business Travel

As a small business owner, you may occasionally need to take a business trip or send your employees on one. While you shouldn’t travel frivolously, you also shouldn’t hesitate to travel in cases where it may benefit your business. This includes conferences and conventions, meeting with prospective clients, attending out-of-town training sessions or networking events, […]

5 Disadvantages of Working with Alternative Lenders

Financial Technology (FinTech) lenders such as Kabbage and Mogo Finance Technology are changing the world of small business lending and startup financing by using new risk metrics that don’t put as much weight on credit history, thereby speeding up the application process. Business owners who qualify can receive access to up to $100,000 or even […]

5 Reasons to Hire a Small Business Accountant

Some business owners wait for a surge in their businesses before considering whether they need a small business accountant. This is a lot like waiting until you actually hear the roar of a mountain lion before you react—by then, it’s probably too late. As a business owner, it’s important to recognize early that you can’t […]

Accounting for Foreign Currency Transactions on Financial Statements

Does your company do business with people or entities outside of Canada? If so, you may have to report foreign currency exchanges on your financial statements. International Financial Reporting Standards (IFRS) — the entity that governs financial reporting standards in Canada — calls this process foreign currency translation, where you accurately account for foreign currency […]

Attaching Documents to QuickBooks Online Transactions

It can be helpful to maintain documents, such as receipts or invoices, to back up the information that you store in your accounting software. In case of an audit, this information can be essential. Find out how to store documents in QuickBooks Online and link the documents to specific transactions. Attaching Documents in QuickBooks QuickBooks […]

Benefits of Using a PC MasterCard for Your Business

Non-traditional credit card companies and banks are becoming more popular throughout Canada, and their services are compelling to small business owners for a number of reasons. If you are considering getting a credit card from a non-traditional institution, you should be aware of the unique advantages offered by these cards. No Brick-and-Mortar Locations Brick-and-mortar locations […]

Best Accounting Software and Programs for Accountants

If you are in the construction or contracting industry, you need accounting tools designed for your field. There are versions of QuickBooks and complementary apps that can help you with your business’s financial needs. QuickBooks Premier Desktop: Built for Contractors This version of QuickBooks is designed especially for contractors. You can track and analyze costs […]

Capital Cost Allowance: What Can Be Depreciated

When you can write off business expenses in the year they incur, your tax return may feel simple. But what do you do with capital expense? These expenses must be depreciated, or written off incrementally over a period of several years, and their tax treatment is more complicated. The Canada Revenue Agency (CRA) divides capital […]

Financial Statement Preparation: Note Disclosures

The financial statements of an organization should be informative and clear to understand, and they should cover the entirety of the business. Although most of the relevant information can be presented on the balance sheet, income statement, statement of cash flows and statement of changes in equity, there is sometimes additional information to convey. This […]

Finding Purchase Order Software for Your Small Business

If you want to streamline the purchasing of manufacturing materials, inventory, or other items, consider investing in purchase order software. The right program depends on your industry, whether you sell inventory, and your personal preferences. Unleashed Software As an inventory management program, Unleashed handles purchases, stock management, and order fulfillment. If you deal with inventory, […]

How to Handle Refunds on the Books

From experiencing a change of heart to dealing with a defective item, your customers may request refunds for a variety of reasons, and it’s important that you understand how to deal with refunds from an accounting standpoint. What steps should you take? The answer varies depending on the type of refund, whether inventory is involved, […]

How Do Budgets and Forecasts Differ?

A budget and a forecast are both financial planning tools that assist a small business in making decisions. Although these two techniques may sometimes overlap when analyzing an area of business, they are two completely separate ways to strategize and plan. While both items rely heavily on estimation, the scope of each tool is different. […]

How Does a Caisse Populaire Differ from a Traditional Bank?

A caisse populaire is a member-owned financial services cooperative that provides many of the same services as a traditional bank, but there are key differences between two types of organizations. If you are trying to choose a home for your banking needs, make sure you understand the distinctions so you can select a service provider […]

How Is Small Business Accounting Different From Big Business Accounting?

One size doesn’t fit all when it comes to accounting. The way a small business handles its books may look completely different than the bookkeeping processes of a medium or large business. Two businesses operating in the same industry and with the same target audience may have different internal operations, different accounting requirements, and different […]

How to Create a Projected Income Statement

Income statements cover the revenue and expenses of a business over a certain time period, and they help ensure you stay within your budget and help you identify potential issues so you can address them before they become problems. If you want to plan ahead or forecast how upcoming changes might affect your business’s income, […]

How to Match Employee Retirement Contributions

A great benefit to offer your employees is a group retirement plan that allows them to save for their future. In Canada, most people are a part of a group registered retirement savings plan (GRRSP). This plan has its own set of advantages and disadvantages over other retirement plans, but it does allow employers to […]

How to Determine Your Minimum Monthly Profit

When you’re planning a new business venture or looking to expand your current business by diversifying your offerings, it’s important to be able to gauge when your business can expect to become profitable. That way, you can estimate how long you need to cover expenses out of pocket until revenue reaches the level that it […]

Tax Loopholes for Small Business Owners to Use Today

When you’re looking for ways to keep more money in your pocket, cutting your tax bill might be high on your list. Canadian tax loopholes still exist and are legal, although the Canada Revenue Agency (CRA) watches for suspicious activity. If you follow the rules and work closely with a good accountant, you can take […]

The Best Receipt Scanning Apps and Software Programs for Small Businesses

Does your small business keep you on the road? Keeping track of all your expenses and receipts when you’re on the go requires a little planning and help from great apps. By organizing and tracking your expenses, you can head into tax season equipped to claim all the tax deductions you qualify for. Receipt scanning […]

Should I Pay Myself a Salary or Dividends?

If you own a Canadian small business corporation, one of your first actions is to determine whether you want to pay yourself a salary income or dividends – or both. Though the correct decision for you comes down to personal circumstances, you should have an objective understanding of the advantages and disadvantages of each payment […]

What Are Operating Expenses?

When you run a small business you incur lots of different expenses, from your business space to your raw materials. But these expenses aren’t all lumped into one group. Operating expenses are one type of expense that businesses incur on a regular basis. An operating expense, also called an operating expenditure or OPEX, is a […]

What is the DuPont Analysis?

The DuPont Analysis offers a way to break down your company’s return on equity and better understand the driving forces behind its profitability. It also helps identify areas that enhance the value of your company’s return on equity. Derived from the DuPont Corporation in the 1920s, this method provides valuable insights into your company’s financial […]

Small Business Terms: What Are Accrued Expenses?

As a small business owner, you want to get a true picture of your company’s resources and financial responsibilities. This means you should recognize income as soon as you earn it and expenses as you incur them. If your company receives goods or services from suppliers and you pay for them in the following month […]

Small Business Terms: What Is a General Security Agreement?

A general security agreement (GSA) represents a special agreement that allows you to secure a commercial business loan with certain types of collateral. If you default on the loan, your creditor may reclaim the asset noted in the security agreement as repayment. These agreements can secure current or future debts, and the underlying property can […]

What Is an Electronic Cheque?

An electronic cheque, also called an e-cheque, represents a form of payment created and submitted over the internet. If your business has an online point of sale system or e-commerce portal that accepts e-cheques, your clients simply need to enter their bank account number, transit number, and the amount they want to pay. How Electronic […]

What Is EBITDA?

When you run a business, your financial health means everything to your success. One tool for understanding that financial status is EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a measure of a company’s profitability without taking into consideration the interest, taxes, depreciation, and amortization that you may have. What Is […]

What Is Net Profit Margin?

Net profit margin (NPM) is the ratio of net profits to sales or revenue for a business or business segment. You measure net profit margin as a percentage, and it shows how much of each dollar in revenues becomes profit. Generally, the higher your NPM, the better for your business. But depending on the industry, […]

What Is the Receivables Turnover Ratio?

The receivables turnover ratio is an accounting measure used to measure the number of times your company collects its average accounts receivable. This figure measures how effective your company is at collecting invoices and credit extended to customers and clients. Businesses usually calculate this metric annually, but you can perform this calculation monthly or quarterly […]

Small Business Terms: What Is the Quick Ratio?

Keeping tabs on your company’s financial health helps you stay on track and continue growing. One way to do that is by calculating your quick ratio, which is a commonly used financial ratio that gives you a quick look at your short-term liquidity. The quick ratio, also known as the acid-test ratio, is your ability […]

Small Business Terms: What Is the Raw Materials Price Index (RMPI)?

With the right tools at your disposal, you can make better decisions for the success of your small business. The Raw Materials Price Index (RMPI) is one such tool that helps explain the relative change in the price of raw materials purchased by Canadian manufacturers. Essentially, the RMPI looks at the prices of several manufacturing […]

How to Store Your Small Business Bookkeeping Records

Every business needs solid bookkeeping practices. Part of that process is storing the financial documents that back up the numbers in your books. The Canada Revenue Agency (CRA) requires small business owners to keep financial records for at least six years. Depending on your industry or financial objectives, you may need to keep additional records […]

How to Master Currency Exchange for your Business

As a small business owner considering expanding your company internationally, it’s likely that foreign currency exchange rates may be the last thing on your mind. It’s more probable that you’re contemplating other factors, such as how to export or import the highest quality of goods for your business, how much travel you can expect to […]

Open a Business Bank Account and Credit Card to Stay Organized

Using a business banking account to keep your business finances separate from your personal finances is a great way to stay organized. You can easily track cash flows for your business. At tax time, it will be easier to separate your business expenses from your personal expenses. For example, if you have a charge from […]

Preventing Fraud in Your Small Business

No business, regardless of its type or size, is immune to fraud. However, small businesses are particularly vulnerable due to their lack of resources for monitoring and preventing fraudulent activities. More than 40 percent of fraudulent activities occur internally, often perpetrated by long-time employees, which makes it even more difficult to detect them before significant […]

How To Record and Calculate Bad Debts

If you provide products or services before being paid, you’re occasionally going to experience a bad debt. This occurs when you issue an invoice and your client doesn’t pay it. There are two distinct ways of dealing with bad debts in your books, and it’s important to understand these strategies and the differences between them. […]

Managing Your Accounts Receivables for Maximum Cash Flow

Extending credit to your customers gives them another purchase option and may increase sales, but it also requires you to effectively manage your accounts receivable to keep your cash flow stream strong. When you extend credit to customers, instead of getting paid in cash right away, you record accounts receivables (AR) as claims held against […]

Reasons to Switch Your Payroll to Direct Deposit

While some accounting or payroll practices may favor either employers or employees, direct deposit is one practice that conveys multiple benefits to both parties. Therefore, as a small business employer, switching to direct deposit offers you the opportunity to do your employees a favor while also obtaining significant cost savings and simplifying payroll bookkeeping. Direct […]

Capital Cost Allowance Deduction: What Is the CCA Deduction and Can I Claim it?

When your small business owns assets, you can’t claim their costs all at once. Instead, the Canada Revenue Agency (CRA) allows your company to take a yearly deduction for assets that depreciate over time. The CRA calls this deduction the capital cost allowance (CCA). Instead of taking the full expense in the year you purchase […]

Maximize Write-Offs When Attending a Convention

Conventions can be great places to generate ideas, learn about trends, network with other professionals, and promote your business. The Canada Revenue Agency (CRA) allows you to claim travel expenses as business deductions, but the agency has special rules for conventions. If you want to enjoy the benefits of conventions and maximize potential write-offs, it’s […]

Preparing a Successful Notice of Objection

Following an audit by the Canada Revenue Agency (CRA), you may receive a notice of assessment that you dispute. If you want to challenge the auditor’s findings, your first step is to file a Notice of Objection. Here is what you need to know to give yourself the best chance at a successful outcome. When […]

Managing Delinquent Receivable Accounts

When extending credit to customers, you run the risk of accounts receivable going delinquent. Although you might be able to make future collections on the accounts, those accounts still require special management to ensure future business with the clients, explore different payment options, and decide whether legal recourse is necessary. Maintaining Customer Relationships Managing delinquent […]

Using Payback Period In Capital Budgeting

Having too much business to handle seems like a great problem to have, but picking and choosing which projects work best for your business can add extra challenges. When you need to decide between mutually exclusive projects, calculating the payback period can help you evaluate the risk of each undertaking. This capital budgeting tool analyzes […]

Small Business Term: What Is Asset-Based Financing?

Asset-based financing allows your business to obtain a short-term loan by using assets as collateral to obtain cash. Lenders usually look at your accounts receivable, purchase orders, and inventory as assets, but banks may also see your facilities and equipment as assets. Asset-based lenders may advance up to 90% of the value of the asset […]

Form RC59 Gives Reps Access to Your Canada Revenue Agency Business Account

Your Canada Revenue Agency (CRA) business account contains sensitive information about your business. In order to allow someone else, such as your accountant, to access your information, you need to let the CRA know about your consent with the RC59 form. Both the online and downloaded RC59 form lets you set up various levels of […]

How to Create a Complete Cash Flow Projection

It’s essential to have sufficient cash in your account, since you have to pay your employees, handle business expenses, keep money in cash registers, and pay unexpected bills. Working capital is critical for small businesses, and cash flow projections can be an important tool for ensuring you always have enough cash on hand. Time Period […]

Refinance Your Business Debt

Debt refinancing usually happens in a declining interest rate environment. When you refinance your debt, you take out a new loan – usually a larger loan – at a lower interest rate to pay off an existing loan. This allows you to take advantage of the lower interest rate and reduces your interest expense. Taking […]

Understanding Canada’s Three-Hour Rule for Employee Payment

When business is slow, it’s common practice to let an employee go home early. However, if that employee has on the clock for less than three hours, you may have to pay them more than their usual rate. Understanding the Three-Hour Rule ensures your business stays compliant with labour regulations. Three-Hour Rule Definition The Government […]

Tracking Startup Costs for Tax Deductions

Ready to launch your business? Don’t shove those receipts for startup costs in a drawer to be forgotten. The Canada Revenue Agency (CRA) lets you claim startup costs as business expenses, but you need accurate records and proof of the costs. Knowing what you can claim and keeping track of those expenses makes your job […]

What Is a Prepaid Asset?

A prepaid asset is a financial resource available for future use. You realize the benefit of the asset at a later date than you paid for it. You record a prepaid asset on your balance sheet, reducing its value over time while reporting an expense on the balance sheet each time you do. Examples of […]

Small Business Term: What Is a Temporary Layoff?

When an employer halts or reduces an employee’s working hours without terminating his or her employment, the employee is considered to be on a temporary layoff. Just because an employer fails to specify a date of recall when laying off the employee does not necessarily indicate the employee has been terminated. It is important to […]

How to Calculate Net Tax

Your net tax is the amount of sales taxes your business owes to the Canada Revenue Agency (CRA). This tax shows how much you should pay to the CRA over a particular tax period. If you sell taxable goods and services, you may need to remit goods and services tax or harmonized sales tax to […]

What to Do When Payment Is Overdue

When you send an invoice, you expect it to be paid on time. But you learn quickly as a business owner that this isn’t always the case. You may eventually run into clients who pay late or try to avoid paying altogether. You may even have to deal with the occasional bounced cheque. How do […]

Understanding Gross, Operating, and Net Profit

Discover why it is so critical to know what minimum monthly profit is required to cover your firm’s operating expenses.

How to Measure Your Margin of Safety

Learn what the margin of safety measure is, why it is important, how to calculate it, and see an example.

Accounting Tip: Perform a Self-Audit on Your Startup

Learn the advantages of performing an internal audit on a periodic or annual basis, while discovering tips for strengthening your company’s financial health.

Tips for Investing as a Small Business Owner

Don’t lose sight of personal investment goals while immersing yourself in the day-to-day operations of a small business.

Understanding the Four Major Types of Financial Statements and Their Uses

Preparing external reports for investors or financial institutions? Understand the four types of financial statements and the purpose each report serves.

How to Document Barter Exchanges to the CRA

Learn how the Canada Revenue Agency treats trade and barter transactions, and review how to report these transaction on your tax return.

How to Estimate Cross-Border Shopping Duty and Excise Taxes

Learn how to calculate import duty and tax rates on goods bought in the United States and brought into Canada.

Treat Digital Currency Payments as a Barter Transaction on Your Taxes

Learn how the Canada Revenue Agency views digital currency, and review tax considerations for using digital currency in business transactions.

Tracking Inventory for Your Brick and Mortar Store

If you run a brick and mortar shop, you need a quality system that can help you track your shop inventory. The right inventory management tools allow you to see what inventory you have on hand, support invoicing, purchase orders, cost tracking, and more. Brick and Mortar Shop Inventory Systems SOS Inventory SOS Inventory lets […]

Variable Versus Absorption Costing

Businesses combine materials, labour, and overhead to make products to sell. Likewise, the combination of these three costs determines a company’s cost of goods expense and inventory valuation amounts. From an internal management standpoint, knowing how costs associate to your products proves critical in understanding pricing options and deploying product manufacturing upgrades. Keep in mind […]

Budgeted Performance Vs. Actual Performance: How to Perform Variance Analysis

You’re probably well aware that most aspects of business don’t go exactly as planned. This is a reality in all businesses, so much so that variance analysis comes into play. Variance analysis lets you investigate the difference between planned behavior and actual behavior. When it comes to performance metrics, variance shows the difference between what […]

What Is the Difference Between Net 30 and 2/10 Net 30?

The payment terms on an invoice tell your clients when they’re expected to pay. As the business owner, you have the freedom to set the payment terms that best fit your needs. While you can make your invoices due upon receipt, it’s often a more customer-friendly option to give clients a reasonable amount of time […]

Maximizing Profit: Sell or Process Further?

If you run a small business in the manufacturing sector, you often face a time during the manufacturing process when you can either sell a product as is or produce it further to create a different product. For example, a brewery can make beer to sell on tap. However, with additional resources such as bottles […]

Should I Pay for Payroll?

The decision whether to outsource the payroll function or keep it in house typically comes down to cost, which varies widely depending on the type, size, and growth trajectory of a business. While smaller businesses might save money on tangible costs by keeping payroll in house, factors such as multiple locations, employee benefits, employee turnover, […]

What Is a Vacation Entitlement Year?

Vacation entitlement years are used to help determine how much vacation time and vacation pay an employee is entitled to have. A vacation entitlement year is the 12-month period over which an employee earns vacation. As for time off, an employee is entitled to two weeks of vacation time after each vacation entitlement year. As […]

Vacation and Holiday Policies by Province

As an employer, you are obligated to give your employees vacation time. The exact amount varies based on your industry, how long your employee has been with the company, and the province in which your business resides. Here is an overview of the basics. Federally Regulated Employees If your business is in one of several […]

Avoid These Red Flags to Prevent a Small Business Audit

At some point in the life of your small business, it’s safe to expect an audit from the Canada Revenue Agency. This is a normal part of the Canadian tax system — as long as you file your taxes diligently, you usually have no reason for concern. That being said, avoiding CRA audits when possible […]

Gaining Control: How to Implement a Zero-Based Budget

Whether you’re a new business owner or an old pro, your business growth and success rises and falls by your ability to stick to a budget. Small business budgets help control the amount of money you spend by checking it against expected cost and expense levels. For rapidly growing businesses that have no previous benchmarks […]

What Is a Credit Invoice?

A credit invoice or credit note is a statement detailing a refund or credit to an invoice. For example, you may issue a credit invoice if a customer asks for a refund or if you decide to give a customer a credit for any reason. In many cases, using credit invoices is more accurate than […]

How Do You Access Your My Service Canada Account?

My Service Canada Account is an online service offered by the Government of Canada that allows Canadians to access their information, including tax information slips, Canada Pension Plan contribution statements and Employment Insurance information. To access your My Service Canada Account, take the following steps: Visit the My Service Canada Account login page. Click the […]

How to Import Your QuickBooks Desktop Data Into QuickBooks Online

QuickBooks allows customers to switch from its desktop version to the online version easily. To import your QuickBooks Desktop data into QuickBooks Online, take the following steps: In QuickBooks Desktop, click Company in the menu and select Export Company File to QuickBooks Online. Enter your QuickBooks Online login credentials on the QuickBooks Online login screen. […]

How to Reconcile Accounts in QuickBooks Online

When you reconcile an account, you make sure that the information recorded is correct. QuickBooks Online allows you to reconcile your accounts easily. To do that, take the following steps: Click the Gear menu at the top of QuickBooks and select Reconcile in the Tools section. Select an account in the Account drop-down list and […]

Important Year-End Reports to Run

At the end of each fiscal year, it’s important to review the performance of your business. Year-end accounting reports offer useful metrics for evaluating performance and allow you to identify what you’re doing right and what you need to improve to help your business thrive and grow. Which Are Must-Complete Year-End Reports? Year-end profit and […]

Leveraging: Make Debt Work for You

Financial leverage is the practice of [using loans],(http://www.accountingcoach.com/blog/what-is-financial-leverage) rather than cash, to acquire assets. Small business owners might use leverage to acquire high-priced assets such as real estate and equipment. For a new small business owner, the biggest benefit of leverage is that it enables you to make large purchases that you might not otherwise […]

How to Activate a Payroll Service in QuickBooks

If your new small business has employees, activate your payroll service in your QuickBooks desktop software. If you bought QuickBooks online, you have received an activation key. If you bought it in a store, you need to go to the service’s site to get the activation key. Once you have the activation key, in your […]

How to Calculate Employee Taxes Using the Bonus Method

Typically, when you pay employees, you withhold taxes from their paycheques. This allows you to keep track of payroll easily, because everyone makes a set amount every pay period throughout the year. This process of tracking a worker’s pay, referred to as the periodic method, is often effective with regards to withholding income taxes. However, […]

How to Adjust Sales Tax Liability in QuickBooks Online

You may have to adjust your sales tax liability for GST/HST, PST, or QST, such as when a customer fails to pay an invoice or you need to get a refund of some of the remitted sales tax. These represent the Goods and Services Tax, Harmonized Sales Tax, Provincial Sales Tax, or Quebec Sales Tax […]

How to Deduct: Technology and Equipment Deductions and Capital Cost Allowance

When you replace or [upgrade your company’s technology](https://quickbooks.intuit.com/ca/resources/technology/when-upgrade-business-technology/), it comes with a cost. The Canadian Revenue Agency (CRA) allows you to claim these costs as deductions on your taxes, which reduces your tax bill. Different technology purchases qualify for different types of deductions. Before you fill out your tax returns, it’s a good idea to […]

How to Record a Sales Tax Expense on Imported Goods in QuickBooks Online

Recording a sales tax expense on imported goods in Canada serves multiple purposes for your business. You keep accurate records for when you remit the GST/HST to the Canada Revenue Agency. You also track a duty expense, or a tax on imported goods, when it applies to certain items you bring in from another country. […]

If You’re Self-Employed, Should You Contribute to an RRSP or Take Dividends?

As a self-employed business owner, you need to plan your own retirement. When the time comes to take accumulated profits out of your company, should you pay yourself dividends, contribute to your registered retirement savings plan, or both? Find out what you need to consider so you can make an informed decision. Tax Advantages of […]

What Is Income Splitting and How Can It Help Lower Your Taxes?

If you own a small business, you may be able to reduce your taxable income through a process known as income splitting. One of the most effective strategies involves the distribution of dividend income to your family members. The Canada Revenue Agency (CRA) doesn’t allow taxpayers to split income with other relatives, but there are […]

How to Emphasize Profitability in Your Small Business

Achieving success as a small business owner requires a proper focus on profitability. Of course you focus on profits, but are you being honest with yourself about the actual profitability of your company? It’s common for new businesses to endure a period of time operating at a loss, but it’s a mistake to think the […]

Forget the Filing Cabinet in Favor of Online Payroll Processing

Online payroll processing allows small businesses to store payroll information in a cloud-based system, which has eliminated the need to keep paper files and store such confidential data on a computer hard drive. Modern online payroll processing does not require the skills of a professional bookkeeper. When payday arrives, a few simple commands on the […]

How to File Form T2200

Do your employees occasionally work from home, use their personal cars, or otherwise pay for other unreimbursed expenses as part of their job duties? Your employees may be able to deduct those employment expenses. But they can’t claim those expenses as tax deductions unless you, as their employer, complete Form T2200 Declaration of Conditions of […]

Handling the Complexities of the GST/HST’s Place of Supply Rules

When running a small business, you have plenty of rules and regulations to follow, including the taxes you charge to your customers. Even once you figure out which provincial sales tax types apply to your business, you still have to know the ins and outs of each type to charge and remit the tax payments […]

Accounting Tips: 5 Tips for Using Credits and Debits

Utilized in bookkeeping and accounting, credits and debits are key parts of the double entry system, which refers to a method of recording transactions that affects two accounts or more. Here are five tips for recording credits and debits: For every credit entry, a separate account must receive a debit entry of an equal amount. […]

Accounting Tips: Forecast Inventory Using Days Sales in Inventory

Days sales in inventory, or DSI, measures the number of days it takes for your company to sell all of its inventory. The calculation also shows how many days your company’s inventory lasts into the future. Knowing this calculation helps you to quantify your business’s overall value and determine how quickly you turn assets into […]

Company Car or Personal Car: Which Is Better for Business Use?

As a small business owner, you’re always looking for ways to maximize profits and make your company run as efficiently as possible. Using a vehicle for your business represents one financial aspect of running your company that deserves a closer look. The Canada Revenue Agency (CRA) allows you to write off the use of a […]

Accounting Tip: Follow the Six Year Rule for Preserving Business Records

Under Canadian tax law, taxpayers are required to keep their books and records for a period of six years following the end of the tax year to which they relate. For individuals, this means the calendar year and for corporations the end of their chosen fiscal year. The expression “books and records” means all documents, […]

Billing Methods for Small Business Owners

If you provide products or services to clients before they pay for them, you need an efficient billing system. Ideally, you need a system that presents your clients with a detailed, professional-looking billing, but you also need a system that makes it easy for you to keep invoices organized. Paper Invoices You can obtain notepads […]

Minimize Shrinkage by Assigning Protocol for Shipment Distribution

Inventory shrinkage is the percentage of physical inventory versus suggested inventory. By designing a protocol for receiving shipments and distributing inventory, shrinkage can be reduced. Designate only specific, higher-level employees to open and assign new shipments to where they belong. These employees should be given the responsibility of cross-checking the packing list, order sheet, and […]

Benefits of Tracking Payroll Online

Online payroll solutions, such as Wagepoint, Time Tracker, Time Rewards, and many others, let you move your payroll from paper or cumbersome spreadsheets to the cloud, and offer a bevy of features to save time and streamline payroll-related tasks. Depending on the payroll software you select, it may integrate scheduling, expense tracking, and other components, […]

Your Guide to Netfile Requirements

Netfile offers you the time- and cost-saving convenience of filing your taxes with the Canada Revenue Agency (CRA) over the internet. To use the service, you just need to make sure you have Netfile-certified software. Most taxpayers have Netfile eligibility, though there are a few notable exceptions. When Can You Use Netfile? The Netfile system […]

How to Educate Employees About Deductions

If you have employees and you require them to use a home office, buy their own equipment, drive their own car, or incur similar expenses, they may be able to claim a deduction on their annual Canada Revenue Agency (CRA) tax returns. To help your employees, educate them about these deductions and make sure you […]

Small Business Deductions: Apprenticeship Job Creation Tax Credit

Looking to hire new employees? You could catch a tax break while helping an apprentice hone their craft. The Canada Revenue Agency (CRA) offers small business owners the opportunity to earn the Apprenticeship Job Creation Tax Credit. This credit helps cover a portion of the salary you pay to eligible apprentices who work in certain […]

Benefits of Accepting Electronic Cheques Over Paper

If you accept electronic cheques, you give your clients an alternative payment method that benefits both of you. When you pair them with online invoicing by smartphone, electronic cheques offer a great payment option for those who don’t want to use credit cards, but some clients or customers prefer using landlines and paying bills with […]

How to Incorporate ROI Into Your Accounting Software

Measuring return on investment is a great way to gauge how well your assets are performing and how your business is doing overall. Integrating applications such as Fishbowl with QuickBooks Online accounting software allows a detailed view of expenditures on sales and marketing campaigns. By tracking the costs of such endeavors and the amount of […]

What is a Break-Even Point?

When you reach your sales targets, you may feel successful, but setting the right targets matters more in the long run. Your break-even point, or the moment when your total revenue equals your total expenses, proves one of the most important targets for small businesses to hit. At the break-even point, your company has neither […]

What Are Bad Debt Expenses?

Bad debt expenses are debts you can’t collect from customer invoices. This typically occurs if your business delivers products or services to customers before receiving payment. You later find out that these customers can’t pay for the goods or services your delivered due to financial problems, such as bankruptcy or losing a major account. For […]

Not-For-Profit Accounting In Canada

Nonprofit organizations are often run similarly to businesses in that they may have employees, directors, clients, revenue and expenses. However, there is one huge exception: These organizations do not earn profit. If you are starting a nonprofit, it’s important to understand your obligations under the law and the key differences between business and not-for-profit accounting. […]

Tax Guide for Manitoba

The acronym PST refers to the provincial equivalents of the goods and services tax. PST stands for provincial sales tax, which is the applicable tax in the provinces that don’t participate in the harmonized sales tax regime but still have provincial taxes. The provinces with PST are British Columbia, Manitoba, and Saskatchewan. On July 1st, […]

Filing A Complaint Or Dispute With The Canada Revenue Agency

There are certain circumstances in which you may have to file a complaint or dispute against the Canada Revenue Agency. As a small business owner, your time is valuable; your complaint could be about delays in the service you have received, wrong information relayed or employee behaviour. There is a process to resolve complaints, which […]

How To Keep Your Balance Sheet In The Cloud

“Move it to the cloud” is the rallying cry of business owners and tech lovers around the globe, and it applies to nearly everything from business software to individual documents. Cloud-based applications can streamline scheduling, project management and many other business tasks. In particular, you may want to move your company’s balance sheet to the […]

How to Optimize Capital Losses

When you dispose of an asset for less than its purchase price, you incur a capital loss. The Canada Revenue Agency (CRA) allows you to deduct capital losses from capital gains on your tax return. If you want to keep your tax liability in check, it’s important to understand this process. Capital Improvements and Sale […]

How To Record Journal Entries For QuickBooks

Journal entries allow you to correct inaccurate information in your accounting records or add transactions that you cannot add in other sections of the software, such as tax adjustments or depreciation expenses. As a small business owner, it’s important that you understand this function of your QuickBooks accounting software. Find out about the steps involved […]

Break Accounting Into Smaller Tasks To Keep Your Books From Piling Up

When you’re trying to complete the accounting for your small business, it’s more manageable if you break the main goal into small, easily achievable tasks. If you dread accounting or always tend to ignore the task until it becomes unmanageable, that can add to your stress and make your books even harder to manage. To […]

Remitting GST

The frequency and moment at which you need to remit GST depends on the volume of your taxable sales. The law provides for a minimum period, but you can always choose to file more frequently. If your sales are less than $1.5 million, you must file annually but can choose to file monthly or quarterly. […]

Understanding Capital Gains and Losses

Considering selling one of your company’s buildings or other high-dollar asset? If you dispose of a capital asset, you typically incur a gain or a loss. The Canada Revenue Agency (CRA) has strict reporting rules on capital gains, and it allows you to offset gains with losses. To ensure your compliance with Canadian tax code […]

How to Calculate Gross Margin

It can feel pretty satisfying to see the revenue pouring in as your retail business starts to take off, but it’s also important to keep an eye on how much you’re spending to earn those revenues as you grow. Gross margin is a powerful tool for helping you keep a big-picture view of your company’s […]

Fixing Accounting Errors

When inputting significant amounts of accounting data, it is easy to make a mistake. However, it is easy to fix a mistake as well. A common accounting mistake is an error of omission, which arises when an accounting entry is missed entirely. If you are unsure why your books aren’t balancing at the end of […]

Common Payroll Mistakes That Small Businesses Make

When hiring employees, one of the most important functions a small business performs is managing employee payroll accounting. Payroll mistakes can be costly and can have financial, legal, and reputational consequences. These are some of the payroll accounting mistakes that small businesses commonly make. Miscalculating Taxable Income It is not uncommon for some employers to […]

Inventory Valuation: An Overview of Costing Methods

The way you value your inventory has a direct impact on a number of elements in your financial statements. Accounting for inventory directly impacts assets reported on your balance sheet and cost of goods sold recorded on your income statement. As you sell an item from your inventory, it moves from an asset to an […]

What is the Debt Ratio?

Your debt ratio shows how your company’s debts compare to its total assets. It’s a measure of your financial leverage, or how much you rely on debt to cover the costs of doing business. Your debt ratio changes over time because you might pay off debts, take on more debt, increase assets or lose assets. […]

What Is Revenue?

Quite simply, revenue is your small business’s gross income, and the two terms are interchangeable. Revenue includes all the money you take in from sales of your products or services minus customer discounts, client refunds, and returned merchandise costs. This number comes in handy for financial reporting, such as profit and loss statements, and you […]

Accurately Track Your Business Growth Using Cloud Accounting

Cloud accounting software is a tool that can be used by small business owners to track their business growth. The following are three examples that can be tracked: *Sales growth – Use cash flow forecasts to ensure your cash and profit margins are well-aligned. To complete a cash flow forecast, add the existing cash in […]

What Is a Contra Asset?

A contra asset shows a zero or negative balance on your company’s balance sheet. This type of listing offsets the balance in the asset account associated with the contra asset, thereby reducing an asset’s overall value. A normal asset has a debit balance, while a contra asset sits against this to show the net balance […]

How to Calculate the Break Even Point

Your business’s break-even point happens when revenues equal expenses exactly. You must keep the break-even point in mind because it shows how many sales you need to keep your business afloat and moving forward. Break-Even Point Variables and Formula Calculate the break-even point using three distinct variables to determine how many items you need to […]

What are Balance Sheet Accounts?

Imagine a report listing everything your company owns. This fairly common and often-required report is called a balance sheet. To draft a balance sheet, you just need to know your three balance sheet accounts: assets, liabilities and equity. These three balance sheet accounts report what your company owns, what your company owes, and what your […]

What Does Infirm Mean?

Infirm is a term that can mean “of poor vitality,” or not physically or mentally strong, especially because of illness. In Canada, there is a special individual tax credit a person can use if he or she has infirm dependants. The infirm dependant credit can be claimed for a relative who is 18 years old […]

Understanding a Trial Balance

As a business owner, you’re probably familiar with the trial balance statement that’s often prepared towards the end of each accounting period. Since it’s a common function of modern accounting software to create, update and report a trial balance automatically, it’s important to understand how the trial balance functions. What Is a Trial Balance? A […]

Accounting Tips: Reassess Your Accounting Methods as Your Business Grows

As your business grows, assess your accounting policies and procedures. Do you have sufficient space for documentation retention? Is a review sufficient, or should you seek an external audit? Is maintaining inventory on a spreadsheet as beneficial as in enterprise resource processing software? Are you capitalizing assets, and are your depreciation periods appropriate? Are your […]

What Is Venture Capital?

Venture capital represents funding provided to small businesses or startups by individuals or institutions. Collectively, these individuals and institutions become your investors when you receive venture capital. Entrepreneurs who seek to enhance their financial standing by going beyond traditional business loans often seek venture capital to launch their businesses beyond the initial innovation stages and […]

What Are Intangible Assets?

Trying to sort out your assets? All businesses have assets that fall into either intangible or tangible categories. Intangible assets are assets with no physical form. Business trademarks, brand names, technologies, and patents are intangible assets. Definite and Indefinite Intangible Assets Intangible assets fall into one of two categories: definite or indefinite. Definite intangible assets […]

What Is Net Sales?

Net sales for your business shows your total sales revenue minus all sales returns, allowances, and discounts. The net sales figure appears in your company’s income statement in terms of reporting your firm’s financial health. This number more accurately reflects your business’ sales performance versus raw numbers for revenue or income. An Example of Net […]

Small Business Terms: Return on Assets

Return on assets is a number displayed as a percentage that indicates how well your company is using its invested capital or assets to generate income. It is also commonly known as a return on investment. The higher the ROA percentage, the better. A high ROA percentage indicates a company is generating more income using […]

The Importance of Allocating Overhead

It’s easy to track the costs of raw materials, but what about all of those overhead expenses that don’t really belong to a particular product? It’s tough to say just how much electricity you use to run your manufacturing equipment or how much rent should go toward a particular product. By using a consistent method […]

What Is Asset Turnover?

Asset turnover is a ratio that helps your small business measure the efficiency with which your company converts assets into sales. Figure this ratio by dividing your business’s net sales by your total or average assets. If you have a high asset turnover ratio, you operate more efficiently than competitors with a lower asset turnover. […]

Creative Payment Ideas to Improve Cash Flow

Wouldn’t it be great if all of your clients paid their invoices on the due date? Because this does not always happen, it’s important to be creative when it comes to collecting payments, especially on past due invoices. By doing so, you can keep cash rolling into your accounts and keep your customers happy. Installment […]

What Is Invoice Factoring?

Invoice factoring is the practice of selling accounts receivables to a third-party collector. Known as the factor, this third-party collects the money your clients owe you. When you sell your accounts receivables, the factor advances you a percentage of the money your clients owe, typically between 80 and 95%. The amount of money you receive […]

3 Essentials for Successful Cash Flow Management

Since cash flow is the lifeblood of your small business, understanding cash flow and how good management affects your business is vital to your success. This makes it important to take special care with inventory, sales cycles, and accounts receivable time frames, and it also pays to watch out for economic shifts that can tighten […]

What Is Undercapitalization?

Cash flow is the essence of your small business, and managing your business well keeps it flowing. If your cash flow becomes a trickle, it may mean your enterprise is undercapitalized. While undercapitalization is not ideal, it doesn’t mean your business has to close its doors. You can learn how to prevent the situation and […]

How to Use Leverage to Maximize Profits

When you hear people discuss financial leverage, they really mean using debt to acquire additional financial capital. Financial leverage allows companies to earn profits above and beyond their natural limits. Of course, the simple act of borrowing money doesn’t create extra profits. Instead, you need to put borrowed funds to use in a way that […]

Small Business Deductions: Deducting Business Promotion Expenses

Promoting your business is essential if you want to reach new clients and grow your business. The Canada Revenue Agency (CRA) offers you a few deductions that can reduce the costs of advertising, promotional items, entertainment, and even conventions — though some of these expenses aren’t obvious write-offs. Understanding the CRA’s rules and regulations regarding […]

Business Use of Home Deduction: How to Deduct Your Home Office

If you’re self-employed and have a home office, you pay expenses to run and maintain that space each month. You can deduct some of these expenses on your taxes — which means that you can subtract them from your net income on your tax return and reduce the amount of taxes you owe at the […]

How to Deduct Your Business Cell Phone Expenses

The Canada Revenue Agency (CRA) lets small business owners, self-employed individuals, and freelancers deduct business-related cell phone expenses. You can claim up to 100% of your cell phone bill, but only when you use the device solely for business purposes. Calculating Your Cell Phone Bill Tax Deduction When you use a cell phone for both […]

How to Calculate Depreciable Assets

Everything you buy for your business has a cost attached to it, and you can deduct those costs from your taxes. Large items, such as vehicles, buildings, and equipment, are expected to last for years, so when you deduct the purchase cost from your income taxes, you do it over the course of several years. […]

How to Deduct Source Deductions

Source deductions refer to the money you withhold from your employees’ paycheques and remit to the Canada Revenue Agency (CRA). These deductions include Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax. The amount you must remit varies based on how much your employees earn, as well as any deductions for the […]

Tax Guide to Paying Your Family Members

In Canada, your income tax bracket increases with your income. The tax system uses graduated tax brackets so people who earn more money pay more taxes. Because of this, your family pays more income tax as your business income increases. But it’s possible to lower your overall income tax burden by transferring some of your […]

Invoicing Tips: Use Cc and Bcc Fields When Sending Invoices

When emailing an invoice to a client, you may want to send a copy to yourself, your sales department, individuals who your clients request, and related personnel. QuickBooks Online makes this as simple as using the Cc or Bcc fields in its invoicing portal. Cc vs. Bcc Fields on Invoices The Cc and Bcc fields […]

What You Need to Know About Invoice Payment Terms

The payment terms on your invoices influence how quickly you get paid, so it’s an important decision for your small business. You have lots of different options, from expecting payment upon receipt to giving customers a certain number of days from the invoice date. It makes sense to collect payment as soon as possible to […]

Everything You Need to Know About Mobile Invoicing

As a small business owner or freelance professional, don’t you want to streamline your administrative processes, offer customers or clients improved services, get paid more quickly, and make every dollar count? All of that’s possible with mobile phone invoices. What Is Mobile Invoicing? Mobile invoicing uses your smartphone to send bills to your clients or […]

Short-Term Positioning: The Importance of Liquidity

Your company’s liquidity shows how well you can pay off your current debt using your current assets. Cash, accounts receivable, and investments you can turn into cash quickly all qualify as liquid assets. When you compare those liquid assets to your current debts, you want to strike a balance. Too much liquidity means you have […]

The Truth Behind the Myth of Paying Yourself

Small business owners or independent contractors pay themselves out of the business profits. From a tax perspective, this idea is a myth. However, from a budgeting perspective, paying yourself is a necessity. It’s critical to understand the differences between these two concepts and how your business structure can affect them. Small Business Profits If you […]

Training Employees to Detect Fraudulent or Counterfeit Cheques

Even though electronic payments are becoming more and more popular, cheques are still a common form of payment in Canadian businesses. Counterfeiting is an unfortunate reality of business, and you should train your employees to recognize fake checks to avoid losses. First, employees should be trained to understand the basic information found on all checks. […]

What Your Financial Statements Tell You About Your Business

Your company’s financial statements provide the best indicator of its current financial health and serve as your most effective tool for making critical business decisions. At a minimum, you need to know if your business makes a profit or loses money, but you also need the ability to calculate your business’s current and future financial […]

What Is Contribution Margin?

The contribution margin represents a financial calculation that deals with a company’s ability to have enough revenue to cover the variable cost of a product. Calculating Variable Costs Some variable costs that go into a product include materials, labour, and utilities. For example, you set the price of a product at $150. You pay $10 […]