How to organize yourself for your taxes

Remember last year when you had a shoebox of receipts, and you promised yourself you wouldn’t do it again this year?

The Shoebox. A well known container for little receipts smaller than your last pair of shoes.  It is true…many of us get so busy running our business that we forget that one day in the future we will have to take in our taxes and get them done.

As a bookkeeper, I can tell you that one of the most expensive things a client can do is be disorganized.  Somebody has to sort all those receipts.  If you don’t do it, then you will be paying a bookkeeper or an accountant that will do it for you.

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Running from the tax man?

Tax Season

It is that time of year that brings out the worst in our pocketbook and the best in our pride.

Nothing says success like looking at your numbers for the year to find out that you made more money than you thought you would make.  But that benchmark of fame brings a price tag (and a monster) that is hard to run from.

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Do you have adequate disability insurance?

During this tax season, I get the opportunity to speak with almost all of my clients as we decide what their payroll will look like, and how they will take their money out of their company. An area of concern for both me and my clients is how well covered they are for disability.

Some clients have WCB (worker’s compensation) coverage in their business, but many people are not aware that WCB coverage is directly affected by how you take your money out of your company. If you truly want the WCB coverage, you need to plan your own personal income so that you qualify for your coverage. (Note that this article speaks about Alberta WCB only)

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Online business – applying Canadian taxes

This remains a very confusing area for many people selling their products and services in an online business.  The regulations by Canada Revenue Agency are pretty clear that the tax applies where the individual takes receipt of the product. Therefore, the tax to apply may not be the tax in your home province.

If you are selling a product to a Canadian in another province, then you likely should be selling it at their tax rate. For example, if you are a company in  Edmonton, Alberta and you are selling to someone in New Brunswick, then you need to sell at 13% HST.  This HST would be filed and submitted with your regular GST return.

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Learn to pay MORE tax

Now you wouldn’t think that a blog would start off with how to pay more tax. But in fact I’m going to teach you exactly how you can pay more tax.

I bet this will be easy, becuase I would bet that you are already doing it. How do you pay more tax? Well, you do nothing except run your business. What exactly does that mean? Many business owners get into a place where they run their business. They have cash flow therefore they think they are successful. But what they don’t think about is how they take their money out of the business. After all, isn’t that why they got into business in the first place?  If you are simply running your business and not planning how you are going to take your money out of the company, then it is very likely that you will end up paying more taxes at the end of the year.

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Are you hiring a bookkeeper?

The IPBC leads the way in certification for the Canadian Bookkeeping industry.

IPBC

Read what they have to say about hiring a bookkeeper.

 

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How Good Bookkeeping in Edmonton can Help You Avoid CRA Tax Audits

For business owners and private individuals alike, few things can quite match the fear and horror of seeing the words CRA audit in the mail. Sometimes, even the most detail-oriented worker could slip up on his tax returns. Fortunately, there are steps that you can take, beginning with hiring the services of an efficient Edmonton bookkeeping service, to help you make sure that your bases are covered, should you ever again be called for an audit one day.Do a Self-Audit

Sure, reliable bookkeeping firms like On-Core Bookkeeping Services might have your back, but it’s also important that you learn how to read and check the details of your own tax returns. As with every aspect that concerns your personal and professional life, you need to be proactive about your affairs if only for that sense of assurance you get when you are aware of what’s happening around you. Check your papers for mathematical and informational accuracy and documentation requirements.

Consistency

Dummies.com advises that you should also be consistent with your expenses:

“Claims for expense deductions must be reasonable, and the expenses must be incurred to earn income. This means that claiming your personal expenses not only is a bad idea — it’s not allowed under our tax law. If you own your own business, make sure your expenses are consistent from year to year.

Keep Learning

Since mistakes are unavoidable, the next best thing one can do is to learn from them and make sure such mistakes are never encountered twice. If you’ve been audited before, make sure that your subsequent returns will not stumble on that same spot that the CRA had flagged the last time.

If you hire an efficient Edmonton bookkeeping service, you can, at least, have the assurance that your financial records are well taken care of and kept in check for the rest of the year. When the time comes to file your tax return, you would then enjoy some peace of mind knowing that you’ve dotted the “I’s” and crossed the “T’s” and that everything in your list had been clearly accounted for.

(Source: Ten Ways to Reduce the Risk of a Canadian Tax Audit, Dummies.com)

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Choosing Bookkeeping firms in Edmonton : Qualities to Look Out For

One telltale sign that your business could be picking up is when your books are piling up year after year. Unfortunately, this could also mean that you’ll have your hands full soon enough. Don’t get overwhelmed by all the paperwork and find help through efficient bookkeeping firms in Edmonton. Here are some qualities to look out for in your bookkeeper:Detail-Oriented

Your bookkeepers should be efficient enough to find his way in the thickets and thickest of paperwork, able to pick on the minutest details so that little gets overlooked or miscalculated. There is a certain level of detail-oriented sharpness you’ll require from your bookkeeper so that your books can be as organized and clear as they can possibly be. You’ll need your reports properly outlined so you don’t miss out on payment deadlines, tax review schedules, or any other financial matters important to the company.

Communication Skills

As much as you should value an employee who gets right on the job as soon as he is oriented, you’ll need to make sure, too, that he is capable of communicating both the details and the overall picture to you. When there’s a problem, he should be able to show you where the problem is, and be able to communicate effectively the source of that problem. He gets your attention immediately, instead of letting the matter fester for days or months.

Industry Knowledge

According to Entrepreneur.com, you should also make sure that your bookkeeper is well aware of the industry that your business deals in:

“While this is something that can be learned, you’ll be miles ahead on the learning curve if the person you hire has a general understanding of your industry. And while bookkeeping for a retail store, hair salon, internet service business and many others have the same basic bookkeeping fundamentals, it’s not exactly the same.”

The bookkeeper you’ll want should have the basic, as well as specialized knowledge of the industry, to be able to deliver efficient and reliable Edmonton bookkeeping services to meet your needs. Firms like On-Core Bookkeeping Services have been providing many companies from various industries trustworthy bookkeepers to service their business needs efficiently.

(Source: 11 Expectations to Set for Your Bookkeeper, Entrepreneur.com)

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Our Value System Helps You Prepare for an Edmonton Accounting Company

As a trusted company, On-Core Bookkeeping Services aims to give the best in return for what our clients pay, which is why we are veering away from traditional bookkeeping systems. Instead of employing a by-the-hour fee system, we will instead charge our clients based on the value of the services we provide them. In doing this, we aim to help them prepare for future expenses, and ensure that their financial records are organized so that they will have no problems when dealing with an Edmonton accounting company later on.

With this shift, entrepreneurs will have an idea how much their costs would be upfront, when they would not have known this under our previous system. In the past, the expenses could only be determined once the services were completed and the total number of hours rendered by the bookkeeper were tallied. From now on, we will be providing an initial quote for the services to be given. This way, our clients can examine their projected expenses early and then arrange their budget for their accountants accordingly.

Moreover, this value-based approach means that there will be more transparency as to what our clients will really be getting. As certified bookkeepers, we offer comprehensive services that begin with us getting to know our clients’ businesses. We also get pertinent details like their income in order to help them maximize their tax returns.

Furthermore, we deal with other important tasks like facilitating payrolls, T4s, and GST submissions and returns. We also handle accounts payable and receivable, inventory counts, bank and credit card reconciliations, month and year-end accruals, and year-end preparations. Though mistakes cannot be avoided, we can surely minimize these along with the different consequences that might arise from these errors. All of our efforts will result in a clean set of books for submission to your accountants and generally a lesser load for your company.

In our years of service, we have been recognized as one of the leading bookkeeping companies that put a premium on accuracy, integrity, and honesty as we perform our services and deal with our clients. Additionally, we value flexibility, which enables us to “think outside the box.” This is very important as we try to meet the needs and demands of businesses and help make their dealings with Edmonton accounting firms a breeze.

If you want reliable bookkeeping that will give you the best value for your money, turn to On-Core Bookkeeping Services. Explore our website, www.OnCoreBookKeeping.ca, to learn more of our services and then arrange an appointment.

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