Key Decisions To Make When Choosing An Accountant

The first and most important thing to remember before getting into anything else is that your accountant handles your money and your money is what your future relies on. Choosing the wrong accountant could cause major damage, if not be one of the many reasons your business could fail. It isn’t hard to choose the right accountant as it is mostly a personal choice that you can customize to your own unique business.

There are several questions you can ask and tips you can consider, even write down somewhere, when choosing an accountant that will be right for your needs.

1.      Will Saving Money Be a Big Priority?

Look for an accountant that will be passionate about saving you money, this will only benefit your business in the long run. In finding someone like this, you can rest assured that all the final prices and deals will be at their lowest when they get to you to make the final decision. This gives you, as a business owner, less stress and the freedom to focus on your product or service quality.

2.      What Method of Accounting Suits You Best?

Some people prefer manual or face to face accounting where others prefer to work with cloud accounting. Both have their benefits – personal, face to face accounting helps you form a closer bond with your accountant which will make working together long term pleasant and easy. Cloud accounting is great for remote locations – if your business is somewhere far out it can be quite a hassle to get your accountant there, cloud accounting allows for your accounting to do your finances from wherever they are, whenever you need them.

3.      Work With Like- Minded People

Working with an accountant who has worked in your field or a similar one to yours can help make the process just that much easier as it is not new territory for them – giving you less to worry about. If your accountant has worked with similar businesses to yours in the past they will more likely know the smaller tips and tricks to help you get the most out of your business.

4.      Is Your Accountant Certified or Chartered?

It is always best to go with a chartered accountant when facing this crossroad. Chartered accountants are the most highly trained and tested types of accountants you will find anywhere today, they will also be able help you out should your business ever be audited or visited by the tax man. Chartered accountants are also degree-level educated on accounting and how to keep the standard and quality of work at its peak.

5.      Ask Friends and Family About Their Accountants

You don’t always need to look from scratch, asking your friends and family about their accounting options could be beneficial as everyone is close knit and understand each other. Having said this, do not forget to consider the fact that some accountants that work for other businesses, might not always work for yours.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Why Cloud Accounting is a Cost Effective Solution

For any business, decisions need to be sensible and they need to be cost effective. The whole point of running a business is to minimize outgoings, ensure systems are in place for productivity, and to increase your chances of a profit. By making poor decisions, you’re not ticking those boxes, and instead, you’re leaking cash instead of making it.

Many businesses choose the wrong option when it comes to their accounting methods. Let’s face it, this is an in-depth area which requires careful thinking and expertise in order to get it right. By overlooking an important detail, you could be running the risk of missing tax deadlines, not reporting the right information, and basically putting yourself in the firing line for a huge penalty.

For That Reason, Looking Into Your Accounting Services and How You’re Going to Do It Is Vital

Unless you have a degree or equivalent in accounting yourself, knowing the ins and outs of the financial world can be difficult. Many businesses choose to outsource their accounting requirements to a qualified accountant instead, and that’s certainly a sensible option if you want to ensure all boxes are ticked. There is a sub-category within that however, and if you don’t consider it as a reality, you might be missing out on a very cost effective option for your financial needs.

We Are of Course Talking About Cloud Accounting

Cloud accounting is, as the name suggests, accounting which is done in the Cloud. For instance, you probably store many of your photos in the Cloud already on your phone, but this is a huge cyber world which can be used for other purposes too. Many businesses use Cloud storage in order to avoid having filing cabinets full of paper, but Cloud accounting enables you to store all your financial information in that same secure space, while also having the services of an accountant (virtually speaking) at your disposal.

For instance, you can employ the services of a Cloud accountant anywhere you choose; they don’t have to be in the same state as you, and that gives you extra flexibility in terms of choosing an affordable option, or someone who is specialized in your business area. Once you’ve chosen that person, your accounting and financial records are stored in the Cloud, so both you and your accountant have access to them, and you can make changes in real time, which the other person can see instantly. This cuts down on misunderstandings and double workload, and it also ensures that at any one time, you know your financial picture, without having to make phone calls and check records.

Put simply, Cloud accounting is a more cost effective solution because it saves time. You don’t have to second guess anything, it’s all there in front of you right at that second. In addition, you are able to shop around for an accountant who fits your needs, without having to go with what may be a more expensive option, simply because you have less choice.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Five Ways Your Business Can Save on Taxes This Year

Nobody likes taxes, this is simply a fact of life. The other fact of life is that we have to pay taxes, whether we like it or not.

The good news is that as a business owner, there are a few ways you can utilize to cut down your tax bill a little, and therefore save cash year upon year. Of course, at first glance this looks impossible - you have to pay the tax that is due, right? Well, yes you do, but there are certainly completely legal ways which allows you to spread your tax or reduce it, while avoiding penalties and other late fees.

Let’s explore five ways your business can save on taxes this coming year.

1 Always File on Time

It might sound obvious, but the single easiest way to save on tax-related costs is to make sure that you file your taxes on time, to avoid late penalties from the CRA. These can vary in cost depending how late you are, and if you’re a repeat offender, you could be putting your business’ future on the line. Cut out the risk and make sure that you’re aware of when you should file, what you should file, and put plenty of time aside in the run up to filing season, so you’re not late.

2 Consider Cloud Accounting

Another way to make sure that you never miss filing time and always file the right information is to make sure you choose the right accountant. Traditional accountants are still a very high quality way to get the right information, but what about Cloud accounting? This is often a cheaper way to do your taxes and run the financial side of your business in general, while keeping everything in real-time. This cuts down on the chances of a mistake, and a mistake when filing your taxes could be costly.

3 Make The Most Taxable Deductions

Make sure you know what you can claim as a tax deduction, and make sure you claim for it! This can reduce your final tax bill down quite drastically in some cases, and a professional accountant will be able to give you up to date information on what you can claim back and what you can’t. Certain costs, such as home or office travel, costs related to operating, etc, these can all be deducted from your tax, therefore keeping cash in your business instead.

4 Move Your Income to a Family Member

Another popular way to reduce your tax bill is to transfer a portion of your income to a family member, usually a spouse, who has a lower tax bill than you do. This means you’re going to be paying less tax on that amount and you get to keep more within your business. Remember TOSI (Tax on Split Income) is out there and you need to be careful not to be caught up on this. Again, a qualified accountant will be able to give you more up to date information on this possibility and give you the best options for your personal circumstances. 

5 Use Tax Efficient Accounts

Finally, when investing your money throughout the year, make sure that you look into options which cut down on your tax bill. For instance, you get a tax deduction on your RRSP contributions, and TFSAs allow you to earn from investments and not pay tax on your withdrawals.

These are all ways you can save on your tax bill this year.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How do Taxes Affect Divorces?

Divorce is an upsetting time, but there are many important things to bear in mind aside from your emotions. Taxes being one of them. 

The Canada Re­venue Agency, or CRA, deems you to be separated when you have lived away from your partner (married) for 90 days or longer. In order to be recognized as ‘separated’ in the eyes of the CRA, you need to live in separate houses, and you cannot live in the same space.

Asset Transfers

Once the divorce has been finalized you need to consider the taxation issues on the various parts of your divorce. For instance, as part of a divorce a couple will divide their assets up accordingly, completing what is known as the ‘equalization payment’ and the asset transfer. The equalization payments are not normally taxed, mainly because the CRA consider you to have previously paid tax on that amount. However, if you are transferring assets, these are subject to taxation. This would be the current difference between the market value at the time and what you paid for them at the start. This can be delayed however using a rollover provision. In order to be sure of this, it’s best to seek out professional advice from a tax advisor.

Child Support

If you have children, you also need to be aware that payments made for child support are not taxed. Similarly, child support isn’t considered tax deductible for the person who is doing the paying. That is something else to be aware of. Spousal support however is taxable on both sides, and this something you should seek advice on, to ensure you’re not missing any important details.

When your divorce is complete, it is vital that you let the CRA know of your change in circumstances. This is because your taxation details will also change. You are able to do this change online, if you are registered, or you will need to do this in writing and complete a RC65 form, which informs the CRA of your change in circumstances. This letter or online change will trigger the CRA into checking your particular situation and from there your taxation will change, and you will be informed of any refunds that you may be entitled to as a result.

Of course, divorce is a complicated time for all parties, without adding taxation issues into the mix. It is vital to get the right information on taxation from a registered accountant or tax advisor and also to ensure that the professional you choose is experienced in divorce and family law. By doing this, you know you’re getting the most up to date information necessary and there are no loopholes that you are missing.

Failure to inform the CRA of your change in circumstances could also have severe consequences in terms of back pay and a large taxation bill coming your way. Only by informing the CRA as necessary and ensuring that you get the right information from a registered and professional person, can you ensure you’re following the right route.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How to Outsource Your Payroll

For a small business, outsourcing payroll might seem like an expensive and unnecessary step, but there are far more advantages to this than you might realize.

Firstly, if you’re not particularly experienced in payroll and perhaps you don’t have the time, outsourcing can free up your expertise and your time to be aimed towards places that would be better served. You can also take advantage of those with specific skills, e.g. freelancers who have years of accountancy and book-keeping experience, who know the smaller nuances of payroll, which you may not have the first idea about.

The only downside to outsourcing your payroll is that you have less control, but that is a disadvantage that can easily be weighed up against the positives. With all this in mind however, how are you supposed to go about it?

Hire a Cloud Accountant

Freelance accountants or Cloud accountants are the best option for outsourcing your payroll. This means that you communicate via telephone or email, or even instant message, and you can check details of your payroll at any time. The only problem here is that if there is a last minute change to your payroll, e.g. you have a new member of staff starting close to the cutoff date for pay that month, or there is an error that you need to fix quickly, you may find a delay. This all comes down to finding the right accountant too, someone who will be available to talk to you and fix problems quickly, without you having to wait around for a call back.  

For many large businesses, the idea out outsourcing payroll isn’t worth it. Most large businesses have their own in-house department and this department will handle everything to do with the financial aspects of the business. For an organization with a large number of employees, this is certainly the best option, because difficulties can arise on a day to day basis, and trying to contact and outsourced accountant in this case can be a tricky business. In this case, you would have to suggest that outsourcing payroll is best reserved for small businesses, medium sized businesses, and those who really don’t have the first idea where to start with putting together a system which pays employees on a regular basis, correctly.

There is also the formal documentation side of things to consider too, such as issuing employees with taxation documents. This needs to be done via the payroll department and again, if you don’t have specific experience, it can be a difficult area to master. 

Before you choose your payroll outsourced destination, you should certainly ask many questions about their systems in place and how they organize the various different companies they work for. By asking questions at this point, you can be sure you’re choosing the right company, and you also need to ensure that the cost of the service doesn’t outweigh the benefits. Only then can you be sure that your decision was the right one for your specific business.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Online Sales and Sales Tax in Canada - What’s The Deal?

The vast number of businesses now offer some kind of online shopping facility, and that means a greater need to understand tax issues surrounding items bought online.

We’re going to talk about sales tax in Canada specifically, but it’s important to point out that you also need to think about the USA and the Wayfair Decision. This was a Supreme Court decision which basically means that Canadian companies also need to register, collect and also charge sales tax (with returns) in the USA.  

Let’s Talk Goods and Services Tax (GST) and Harmonized Sales Tax (HST)

These two taxes apply to the overwhelming amount of sales of goods and services from Canada. GST is currently 5% and HST applies to higher tax rates, at 13% (which covers sales to Ontario) and also 15% if you’re making sales to other parts of Canada, e.g. Prince Edward Island, Labrador, Newfoundland, Nova Scotia, and New Brunswick.  

Canadian business with sales of $30,000 or under do not have to register for these two taxes, however those with a turnover of more than $30,000 do. There are a few anomaly rules however, so it’s vital that you look further into this, to ensure you’re not missing anything. It’s also worth pointing out that businesses which are not resident in Canada but make taxable sales to Canadian customers do.  

Where Does The Online Realm Come Into Things?

Businesses who sell goods and services online will need to collect these taxes depending upon where their customer is located. For instance, it doesn’t matter if the business is located in Ontario, but if their customer is in Newfoundland, they will need to collect the HST tax at the 15% Newfoundland rate.

There is another anomaly to consider here, the QST (Quebec Sales Tax). This is a similar tax but it does have a few side issues to think about. If your business is located in Quebec you will need to be more familiar with this tax. In addition, a business which makes a taxable sale to Quebec will need to register also.

Other Taxes to be Aware of 

There are three other taxes that you need to be aware of if you’re operating statically or online. These are:

•   British Columbia PST - Charged at 7% on all goods which are purchased within the British Columbia province, even online.

•   Manitoba PST - Charged at a rate of 7%, similarly to the British Columbia PST.

•   Saskatchewan PST - Charged at a rate of 6% for those making sales within the region.

It is important to be aware of all tax issues, whether you’re selling online or not. The huge increase in online sales has made it more prevalent to ensure that taxation from these types of sales is done correctly. This doesn’t always follow where the business is based, and is often more about where the customer is based. With that in mind, businesses, whether large or small, need to be aware of taxation issues country-wide.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

When to Turn Your Hobby Into a Business

It’s an interesting realization that many big businesses actually began with someone who had a hobby. This is likely to have been something they did on a daily, or regular, basis, and as a result they began to grow their hobby into something more. If you can make money from something you really enjoy, surely that’s the fast track towards life and business success?

For instance, maybe you enjoy baking cakes, and you think about selling these to local bakeries, or making bespoke cakes to order. This is a hobby which could easily turn into a small business venture. From there, who knows where that may lead? Similarly, maybe you enjoy writing, and you start doing some freelance blogging for a few people - over time this could easily turn into a freelance writing business of your own.

The key question however is when to turn your hobby into an actual business, and once you do that, does it become less enjoyable?

It really depends on how you manage it all.

When Does a Hobby Really Become a Business? 

Simple - when you start to earn money from it. This needs to be a good amount of money and you need to be able to cover your initial costs, e.g. if you’re baking cakes and selling them on, you need to make sure that you’re making a profit on the items required to actually bake the cake. As you start to notice more orders coming your way, and more demand for your cakes, you can then make the decision to turn that hobby into a full-blown business.  

Of course, you can keep it all part-time and use it as a side-line to your regular job; you don’t have to go trying to become the next big thing if you don’t want to, but there are many large businesses which actually began life as a small hobby. It’s certainly something to consider.

Tax-wise you do need to be quite on the ball. For instance, if you are going to make your hobby into a business, you will need to register that business as a self-employed endeavor and as a result you will need to pay tax on the money you make from it. How much tax you pay really depends on how much money you make, so if you keep it part-time, your tax bill is likely to be low. You also need to do some research into other taxes you might need to charge as part of your sales, but this completely depends upon the type of business you have and what you’re doing with it.

The best advice for anyone considering turning a hobby into a business is to get some sound business advice from a registered accountant before making the leap. He or she will be able to give you the low down on costs, taxes, and whether or not it is going to be financially viable for you.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How to Properly Deduct Start up Expenses

When starting up a business there are many things to bear in mind. One very important area of consideration is to ensure that you deduct start up expenses properly, to avoid unforeseen charges coming your way, and to make life a whole lot easier too.  

The CRA lets you deduct your initial start up business costs as business expenses, but you need to be sure that you are actually deducting the right things. This whole subject can be very confusing for a new business owner, and in that case it is vital that you get up to date and accurate advice from a skilled and registered accountant. These start up expenses also need to be incurred in the days after your business is registered and begins, otherwise they don’t fall into this deductible category.  

What Are Start up Costs?

These are the costs which are incurred to get your business started. So, if you’re running a bricks and mortar store, you would use the initial month’s rent, signs, displays, etc as your start up costs. If you’re going to be working as a freelancer, you would use a computer, desk, etc as your start up costs. In order for these to be classed as start up costs by the CRA you need to make the purchases (or incur the costs) during the first period of your business working, e.g. it can’t be purchased beforehand. In addition, these costs need to pertain to day one of your business starting.

The CRA states that business commitment date is when a business owner makes solid steps towards marketing their business, e.g. goods and services. If you purchase the item you want to use as a start up cost before the business commencement date, you may still be able to use deduct it as a start up cost, but it has to be a specific business-only product and you will need to get solid advice from an accountant on whether that item is applicable.  

How to Deduct Start up Costs

In order to deduct your start up costs you will need to file your first tax return. You can do this yourself or you can hire an accountant to do it for you; it’s a personal choice but expert advice is always something you should utilize when it is available!

You will fill out the T2125 form in order to file your return, which will cover your expenses and your income, and you will enter your start up costs on this form. This form is then submitted alongside another tax return, i.e your federal income tax.

To reiterate, it’s far better for a small business to seek up to date and professional advice from an accountant, than to try and do it alone and make a mistake. There are constantly shifting and changing rules in place when it comes to taxes and deductions, and in order to work within current rules, and accountant is the way to go.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Why Outsourcing Your Accounting Could be The Difference Between Business Success And Failure

Businesses have various different tasks to complete on a regular basis, besides the general selling and marketing tasks required for success. One area which should never be overlooked is accounting.

Failure to file your taxes on time, and failure to actually charge the right taxes in the first place, could lead you towards total business failure. It doesn’t matter how many customers you have, how well you’re doing, or how well your marketing plan is going, if you don’t have a firm handle on your accounting, you’re looking failure right in the eye. 

This leads us towards another question - should you outsource your accounting?

There are arguments in either direction, but in terms of getting everything right and done on time, you have to say that yes, outsourcing is a great idea.

Why Outsource Your Accounting Requirements?

The bottom line is that accounting can be a large task for someone who doesn’t know where to start. Even if you have basic accounting knowledge, running a business can take up so much time that accounting tasks can often get left to one side. The longer these are left, the bigger the job when it comes to ensuring everything is recorded and ratified in time for tax returns to be filed. Put simply, if you leave these types of routine tasks, they quickly mount up into something similar to a landslide.

If you choose to outsource your accounting, e.g. to a Cloud accountant or otherwise, you’re taking the entire task off your plate. You know that everything is being done in a professional and accurate manner, and you don’t have to worry about finding time to complete tasks yourself. This can be a huge weight off the mind, and can also make tax filing time infinitely easier for a business owner, whether large or small.

Why Could Outsourcing Equal Business Success?

Basically because you have more time to focus on the things that require your attention, e.g. business growth. If you’re juggling ten jobs at once, including your accounting tasks, how are you supposed to give 100% to anything?

Outsourcing means that you can focus your attention on the things that your skills are aligned to do. Not everyone has a natural flair for accounting and in that case, why not make use of someone who does have those skills? Outsourced accountants also ensure they are always up to date with new legislation and technology, so you don’t have that extra responsibility on your plate too. Rules are always shifting and changing in subtle ways, and if you miss something, you could end up with a large penalty or oversight on your hands.  

If you’re not sure whether outsourcing is the right choice for you, it’s best to shop around and look at rates, speaking to various accountants. By doing this, you’ll probably be more than reassured that outsourcing your accounting requirements really is the difference between business success and possible business failure.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Why Going Digital Could be The Best Decision You Ever Make

Are you a business owner who is constantly chasing their own tale? Do you end up doing tasks more than once? Do you ever really know for sure what the status of your business is financially?

If you’re nodding your head, you’re not alone.

Many business owners claim to be in this very situation. The thing is, you can easily turn all of this around by embracing the digital age, and going digital with your accounting endeavours.

There are many digital methods when it comes to financial subjects, but in this case we’re referring to accounting, with Cloud accounting software being one of the most popular and most used.

There are four main selling points here - time management, productivity, real time reporting, and accuracy. Let’s explore each one in turn.

Time Management

Cloud accounting software in particular will allow your business processes to be more streamlined. For instance, when you invoice a client, the invoice is automatically generated and sent to them digitally, and when they pay, the money is transferred in the same way and all your records are updated accordingly. All of this is done with the touch of one button. You don’t have to digitally create an invoice, send it, wait, and then update everything manually when they pay. That saves a lot of time.

Productivity

Because you’re saving time, that means you’re being more productive overall. You’re freeing yourself up to do other tasks, tasks which could help your business to grow and become more successful and profitable. Staff are also freed up from manual tasks which can be done extremely easily and automatically by your digital software choice.

Real Time Reporting

At any time you can see what your financial status is, and know that it is bang up to date. Much of the time, with manual records, you have to bear in mind that certain things might not have been inputted yet, or there are invoices awaiting payment which you have to remember. With digital methods, that’s not the case. Everything is shown there and then, giving you a clear picture at that moment in time. This can help with business decision making.

Accuracy

Of course, digital methods of accounting are also more accurate, and generally free from human error. Because everything is synced and streamlined, the various parts of your financial picture communicate with each other and ensure that nothing is missed. This is vital when the end of tax year filing time comes around.

As you can see, these four benefits are certainly huge. This is why going digital could be the best business decision you ever make. There is nothing to fear about this change either, as digital accounting software, such as Cloud accounting, is actually very easy to use. You can also employ the services of an experienced Cloud accountant, so you don’t have to oversee anything yourself. Even more time saved, and a higher level of productivity achieved!

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

The Pros And Cons of Doing Your Own Accounting

As a business owner, you have several decisions to make every single day. Some of these are small, some are large. One of them should certainly be about the accounting processes you adopt.

Do you currently do your own accounts, or do you hire an accountant to do them for you? Do you use digital methods, or do you opt for manual accounting?

There are many choices to make, but more and more businesses are actually choosing to save cash and do their own accounts.

Not sure if this is the right route for you? Let’s explore the pros and cons of doing your own accounts.

Pros of Doing Your Own Accounting

These are the advantages of choosing to do your own accounts.

•    Money Saved - By doing your own accounts you’re saving cash. You don’t have to pay an accountant, and in some cases this can be quite a lot of cash saved. This can then be put towards other parts of your business, or growing your success faster as a result.

•    You Have Total Control - Because you’re the only one doing your accounts, or a person within your office, that means you have total control over your finances, and you don’t need to discuss anything with a third party. This can save time and help you make decisions faster.

•    You Can Change Your Processes Easily - If you want to make changes to the way you do your accounts, you can do this far easier if there is no-one else involved.

Cons of Doing Your Own Accounts

There are of course downsides to doing your own accounts.

•    You’re Missing Key Knowledge And Experience - An accountant is a professional who knows their business like the back of their hand. By choosing to do your own accounts, you’re missing out on this experience and knowledge, which could detrimentally affect your business and its financial future.

•    It is Easier to Make Mistakes - Unless you have an accountancy background, or you’re extremely knowledgeable yourself, it can be very easy to make a mistake or miss something completely. This could be a huge issue when it comes to filing your taxes.

•    Tax Filing Time Will be Stressful - When tax filing time comes around, this is bound to be a stressful experience, because you have to do everything yourself.

These are the main pros and cons to take into account when doing your own accounts. There are of course advantages to it, especially in terms of a good amount of cash saved on the salary of a highly experienced professional accountant, but you’re also missing out on their expert knowledge.

You have to make the right decision for your business, and take all aspects into account. Is saving money worth the loss of experience? Are you knowledgeable enough yourself to make this saving a reality? These are all key questions to ask, before you make a decision which could shape the future financial performance of your business, and in some ways, the future survival.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

The Main Features of Cloud Accounting Software

Businesses need to keep up to date with technology in order to continue to be productive and also to ensure that deadlines are met. For instance, the tax filing deadline is not something you want to miss!

Most businesses stick to tried and tested routines, especially for their financial endeavours. If that sounds like your business, then perhaps it’s time to look into more up to date, modern methods and understand the ways they may be able to help you.

Have You Heard of Cloud Accounting Software?

We regularly store items in the Cloud, e.g. personally or at work. This can be images, videos, or important documents, and we trust that our items are safe as a result. What if you could do all of your accounting tasks via the same kind of method?

That is what Cloud accounting software allows you to do. To really explain it in more detail, let’s explore the main features of Cloud accounting software.

Real Time Updates And Accuracy

Cloud accounting software ensures that all your financial information is up to date at any given time. As everything is synced, e.g. your billing processes, that means that whenever a financial transaction is completed, it will show in your accounts. This is a great feature, because it ensures that at any given time, your financial picture is up to date. When tax filing time comes around, this makes everything a million times easier. You can also check your financial picture at any time, and know that it is up to date too.

Automatic Billing and Invoicing

Most cloud accounting software packages allow you to create automatic billing and invoicing. This means that your workload is effectively reduced. You no longer have to manually create an invoice and send it to a client, and then add the sale into your accounts. Everything is synced and done together, and your financial information is updated at the same time. When the client pays, your entire synced software package communicates this to the appropriate records. No more chasing clients and not being sure if they’ve paid or not!

The Facility to Scan Receipts And Cut Down on Paperwork

It may be that as part of your business claims on your tax return, you need to show evidence of purchases, e.g. receipts. You can usually scan these into your software and they are all recorded in the same place. This cuts down on paperwork and also ensures that documents aren’t lost.

You Can Pull Off Reports at Any Time

We’ve mentioned that Cloud accounting software is always up to date, and that means you can pull off a report of your current financial picture at any time. This ensures that you are always aware of where your business is financially, and you don’t have false information to work with.

Basically, Cloud accounting software ensures that everything is synced and streamlined. You are no longer doubling back on tasks, and you have a clear picture of how your business is doing at any given time.

 Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Is a Cloud Accountant an Impersonal Choice?

Have you heard of Cloud accounting ? By reading this article the chances are that you have. If that’s the case, you will know that Cloud accounting is the buzz term in the business finance world, and it is a wonderful tool which can help you streamline your financial picture, making life infinitely easier come tax filing time.

Within this, you can decide whether to use the Cloud accounting software yourself, or you can decide whether to employ the professional, expert services of a Cloud accountant.

The thing is, because everything is digital, and you don’t actually meet this person, is choosing a Cloud accountant an impersonal choice?

Let’s explore.

What is a Cloud Accountant?

A Cloud accountant is a regular accountant, someone who is highly professional and experienced, but rather than working in a bricks and mortar accounting office, they work virtually. This means your accountant doesn’t need to be in your town or city, they can be absolutely anywhere.

A Cloud accountant works predominantly with Cloud accounting software, making them a professional in this type of financial planning. They can get the most out of this digital accounting method and they will be able to show you how to use your software to the best of your ability.

You don’t relinquish control over your software when you employ a Cloud accountant , because you will have joint access. Your Cloud accountant will do all the tasks that a regular accountant will do, it’s just that you don’t actually get to meet them. You can talk to them via online chat, and sometimes you can even call them and have an actual conversation, but you will never get to meet them in person.

Does This Make Hiring a Cloud Accountant Impersonal?

Not really. Provided you choose a highly experienced professional, from a company which has a fantastic reputation, why do you need to speak to them in person? You really don’t when you think about it. Provided you can contact them in some way to discuss an issue, e.g. via online chat or the telephone, you don’t have to have a personal working relationship with them at all. This means that having a digital accountant, in many ways, isn’t impersonal, it’s simply part of moving with the times.

Look at it this way, the number of people who are choosing to work remotely is growing every single year. Companies are forced to embrace this change and adapt to the way the future of working is shaping up. The same thing goes for the way we work with our financial picture.

Cloud accounting in general can bring many benefits to a business, and it gives an accurate and up to date snapshot of a business’ finances at any given time. When you add the power of a Cloud accountant to the mix you’re getting double the benefit, more experience, and a generally very accurate way to keep financial records. When tax filing time comes around, you’ll also find the entire process infinitely easier too.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How to Avoid Chargebacks

Chargebacks are one of the single things to avoid in business. Not only does this cause time and effort, but it can be a costly experience which many small businesses simply can’t afford.

Thankfully, there are a few things you can do to try your best avoid such chargebacks from occurring. We should point out that this will not prevent them ever happening, but will certainly drastically cut the chances.

Firstly, what circumstances might force a customer to request a chargeback?

•   They never received the product they ordered from you

•   They aren’t satisfied with the service or the product

•   They received an incorrect bill or invoice

•   They have looked at their credit card or bank statement and don’t recognise where the deduction has come from

As you can see, such events can often be out of the hands of the business, so it’s best to put into place a few prevention techniques first of all.

Always Follow The Requirements of the Particular Provider

All credit card companies have their own set requirements in terms of how a purchase should be made via their card. For instance, some ask you to check the security code, some ask you to check the expiration date. Make sure that you follow that particular process, to avoid issues.

Have a Clear Description Which Appears on Your Customer’s Bill

When your customer receives their bank or credit card statement, make sure that your company is clearly marked. This will help reduce the chances of them not recognising the transaction and requesting a chargeback.

Address Complaints and Problems as Quickly as Possible

A lot of the time a chargeback can be avoided by simply dealing with the issue at hand quickly and promptly. By doing this, you’re cutting down on a complaint being made and a chargeback being requested. If you can placate the customer enough to calm the waters, you’ll avoid the issue and you’ll also ensure that you do your best to maintain the customer for the future. Remember, word of mouth marketing is still very important in the modern day, even with the digital tools we have at our disposal.

Make Sure Your Staff Are Trained

Make sure that your employees know how to conduct a credit or debit card transaction correctly, and this will cut down on issues which may appear down the line. This should form part of your initial training for all new staff within your business.

Know That You Can Dispute the Chargeback

If you have many chargebacks over a period of time, your merchant account company might have issues and request extra information on why this is happening. If you feel that a chargeback is unfair, do be aware of your options in terms of disputing it. You don’t always have to simply accept it.

These are simple ways which you can use to help chargebacks being a less frequent occurrence. Whilst there is no company that has never had a chargeback, it’s best to do your utmost to reduce them wherever you can.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How do Taxes Affect Crowdfunding?

If you’ve raised a good amount of cash through crowdfunding, what do you need to know about possible taxation? Remember, any amount of cash which comes towards your business, whether as gift or a raised amount of money needs to be declared, and in some cases (most cases) there may be tax to pay on that money. If you’ve received crowdfunding money, here is what you need to know about taxation.

Once you receive cash via crowdfunding, you will need to declare it regardless of whether you think you need to be taxed on it or not. This will probably come to you as a surprise.

The CRA’s Stance on Crowdfunding Cash

The CRA’s stance on crowdfunding cash is that generally it is viewed as business income. With this in mind, there will be the possibility of deductions, which would lower the amount of tax paid on that amount. The fact is that crowdfunding cash is there so that you can continue with your business and that is therefore seen as income for your business. When you break it down to that level, it is far easier to understand.

Of course, crowdfunded monies can come as a donation to a charity, a gift, or it can be a form of income which is taxable. What you deem it to be and what it is in the eyes of the CRA may be different, and that is something you need to bear in mind at the time.

Is it Taxable?

Such money can only be classed as a donation to charity if the charity is registered as non-profit. A gift is a grey area, as many businesses deem their crowdfunding cash as a gift. The tax people may not agree. If they do, you will pay a small amount of tax only on this money. If however your crowdfunding money falls into the taxable income bracket, you will need to pay a regular amount of tax.

As crowdfunding taxation is another complicated subject overall, it is best to seek advice in general. Ensuring that you declare any income is vital in order to avoid issues after your tax return has been filed. This could also land you with hefty penalties, simply because you weren’t sure the actual advice to follow. It’s best to preempt this and seek advice in the first place.

By assuming that crowdfunding money is a gift that doesn’t require tax to be paid is a dangerous game. While there is a lot of confusion and greyness about this type of cash and taxation pertaining to it, the bottom line is that it is money which has been received by your business and is therefore used to help you continue with whatever products or services you’re selling. In that regard, it is taxable. The level at which it is taxable is the question we cannot answer in a general manner; this is a case by case issue which you will need to discuss with your particular accountant as tax filing time looms in the distance.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Why Are so Many Businesses Scared of Trying a New Accounting System?

Nothing stays still for very long, especially in the business world . The constant shifting and evolution of technology means that we are always out of date to some degree. What you can do however, is make sure that you utilise the most useful pieces of technology for you, and therefore create an up to date scenario for your business.

Accounting is one area where most businesses like to stick to the old tried and tested techniques. But, have you ever stopped to think that maybe your old routine isn’t the most time effective or productive?

Let’s Look at Cloud Accounting

Cloud accounting allows you to do all of your financial accounting online and store it in the Cloud, i.e. somewhere in the ether. This is backed up over several servers and encrypted, making it ultra-safe and secure. The plus point of this is that you can update your records at any time, making it the most accurate and up to date way of completing your accounts. You can also use extras, such as scanning receipts to cut down on paperwork and even use automatic invoicing, to save you a huge amount of time throughout your working day.

Cloud accountants are also growing in popularity, i.e. qualified and skilled accountant who uses your Cloud accounting software to access your records and carry out your regular accounting tasks. This means you don’t have to do anything, other than keep watch and monitor anything you see fit.

There really isn't a downside to any of this, yet so many businesses stick to the old tried and tested routines out of fear of change.

Fear of change will stop your business from flourishing and growing into something which could turn out to be hugely successful. Time spent on accounting tasks could be better spent on marketing and sourcing new clients and customers. Mistakes could be hugely reduced because you no longer have to rely on complicated spreadsheets and paper-based record-keeping systems. You can also get a very up to date and accurate snapshot of your financial status by choosing a more technological based method, rather than having to go through endless pieces of paper to try and work out how you’re doing and to understand what improvements can be made.

Another example is to think about the end of the tax year, when you’re scrambling to get your returns in and your tax bills paid. How long does that process take you when you have a paper-based or spreadsheet-type of accounting system? A very long time. Perhaps it’s time to think about the more technological-based options instead, and save you time and stress.

Most businesses are scared of change, because they’re worried that there is an element of risk to introduce to their already finely tuned ship. The truth is that by making changes, you’re actually reducing risks and you’re increasing the chances of growth and accuracy.

Perhaps it’s time you made a change?

 Click on the link below to book a meeting.
https://calendly.com/capexcpa/phone-call-with-jag

- The Capex Team

How Cloud Accounting Can Safeguard Against Missed Tax Deadlines

There is one nightmare situation for any business, big, medium, or small in size - a missed tax deadline.

Missing the date you need to file and pay your taxes leads to a world of stress and can also bring costly penalties which need to be paid. This is dead money, lost money which could have been used for something far more beneficial. The longer you take to file your taxes, the worse the situation also becomes.

It’s quite easy to miss a tax deadline when you’re not organised and when you’re not really in control of your own financial picture. A complicated accounting process can mean that you’re always chasing your tail, never really sure of what your financial picture is, and you’re not really sure what you need to report and what you can claim. Of course, you should have an accountant to help you with all of this, but what if you don’t? What if you’re struggling to do it all yourself?

It’s basically a nightmare situation which leads to costly penalties, which could have been avoided.

What About Cloud Accounting?

There is a solution however, and that comes in the form of Cloud accounting .

Cloud accounting is not necessary brand new, but it is something which is revolutionizing the accounting world. This is a way of recording and running your business’ finances, and one which can create a streamlined and complete situation. For example, you can use Cloud accounting to record your sales and outgoings as per the usual accounting way, but you can also add in scans of receipts, so you no longer need to keep endless paper-based record systems. You can use automatic billing, which links your invoicing to your accounts and makes everything far easier as a result. Time is saved, and everything is up to date and as accurate as it is possible to be.

In addition, you’re saving time, and time is money in the business world.

So, how can this new form of accounting actually help you avoid those costly missed tax deadlines?

Because it is organised and a far more efficient way to record your finances, that’s why.

Cloud accounting allows you to pull out information from your records with the touch of a button, and you don’t have to go through endless pieces of paper and spreadsheet entries with a calculator and a quiet space to be able to do it. Reports are easily generated, you can get an accurate and real-time snapshot of your financial situation, and you can file your taxes within a fraction of the time it takes to do it in a more manual manner.

When everything is streamlined and working together, synced in perfect unison, it’s impossible to forget anything, because it runs itself in so many ways. You also won’t put off  the process of filing your taxes because it seems like such a huge job - it’s far easier when you look towards the Cloud. You can also employ a Cloud accountant , if you want to make it all ten times easier still!

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

How Incorporating Your Business Could Lower Your Tax Bill

For a small business, there are many decisions to make. First of all, you want to start making a profit and seeing some rewards for your hard work. Once that starts to happen, and you notice that your new business is beginning to grow at a steady rate, you need to think about how to lowers costs here and there, whilst also staying within guidelines and ensuring that you get the most out of your business’ performance.

One question which many small businesses agonise over, is whether or not to incorporate.

One of the biggest reasons to incorporate is the protection you will receive from limited liability. We live in an era of ‘no win, no fee’ and that means that more and more customers or clients may be inclined to make a claim on your business if they feel they have been wronged in some way. These claims aren’t always fair on the business itself - what if you haven’t actually done anything wrong, yet you’re staring at a claim which could take a considerable amount of cash from your business? Limited liability is something which can literally limit the risk, and is an ideal benefit for any business which works within what is considered a ‘risky’ area for claims.

The Second Biggest Benefit is Around Your Tax Bill

Did you know that by incorporating your business, you may actually be able to lower your tax bill as a very pleasant side effect?

There are three areas to this - a potential tax deferral, splitting your income, and deciding how and when you receive income from the business itself. All of these areas will affect your end tax bill and when you need to pay it. For some businesses, especially those which may not have had the best year, this can be a major advantage.

Upon incorporating your business you have the power to decide how and when you take cash from the business, which can actually work to lower your tax bill. You can choose to take a salary at a time which will mean you pay less tax, and not when your business has a good chunk of income. You can also decide to take dividends instead, which has the same effect.

Opting to defer your tax is useful if you have a high personal tax rate. Remember, business rates are lower than personal tax rates. If you don’t necessarily need to take money from the business, you can opt to leave it there, and withdraw it when your rate of personal tax is at a lower rate. Again, you save cash.

Splitting Income

The final option is looking at splitting income. You could opt to make your partner or children shareholders in your business, which allows you to redistribute cash from your business to those with lower tax brackets.

Looking at how to lower your tax bill is full of complicated areas and that makes it even more important to enlist the help of a qualified and experienced accountant.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

The Pros of Choosing Cloud Accounting

The technological world is constantly shifting and changing. As a result, it can be hard to keep up, especially when it comes to methods which may or may not benefit your business.

Accounting is another area which many people struggle with. There is no surprise in this statement when you consider how vitally important accounting is to a business. Records and financial processes need to be ultra-accurate, and they need to be recorded in a way which is transparent, and easy to use. Old fashioned accounting methods don’t always allow for this to happen, and for that reason, technology is starting to take over.

Have you Heard of Cloud Accounting?

If not, it’s time you sat up and took notice, because this is an endeavour which could make a huge difference to your business’ financial activities.

Cloud accounting is a virtual way to do your accounts. Rather than having everything paper based or on spreadsheets which can be complicated to follow and input information into, Cloud accounting software allows you to record everything you need online, and then save it in the Cloud, i.e. the ether. This means you can access it anywhere, and those who need access can also do the same.

To further explain and understand what Cloud accounting is, let’s look at the pros of choosing this technological accounting method.

You Can Access it Anywhere

Cloud accounting is done online and stored in the Cloud, and that means you can access it wherever you are. If you are away for the weekend and you suddenly remember something you need to input, no problem, you can do it there and then. This means that Cloud accounting is always up to date and accurate at any time.

It is Safe And Secure

You don’t have to worry about security issues, as Cloud accounting software is encrypted and then backed up over various servers. Those who have access also need a password, which makes is extremely safe and secure.

You Can Use Added Extras to Streamline Your Financial Record Keeping

There are many extras you can utilise, such as scanning recipes into the software and automatic invoicing, which makes your entire financial picture far easier to use, and far more streamlined as a result.

You Can Employ a Cloud Accountant

You don’t have to do your accounting yourself with this method, as you can also employ a Cloud accountant, who will work virtually and update your accounts, in the same way a regular accountant would. This also means you can work with highly skilled accountants outside of your local area, who are contactable easily.

Less Paper Means Less Chance of Mistakes

Aside from being always up to date, perhaps the most important advantage of Cloud accounting is the lower chance of mistakes. Less paper and a more streamlined accounting method means you’re far less likely to forget to input something, lose an important piece of paper, or make a mistake. This makes your accounts more accurate overall.

Ready to embrace Cloud accounting?

 Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Missed a Tax Deadline? Don’t Panic!

One of the biggest heart-stopping moments in the business world is the realisation that you have actually missed a tax deadline. You start to panic, your palms get sweaty and all manner of disaster scenarios start to run through your head.

First things first, do not panic!

Whilst it’s likely that you are going to have to pay interest and a possible penalty, provided you action the issue straightaway and file your return, paying any tax that is due, you will have diverted a major disaster with ease.

Firstly, let’s give a rundown on what will happen:

•   Daily interest will be charged on unpaid amounts for the previous tax year. The interest rate can change every three months

•   Late filing penalties will be applied, which is 5% of your balance plus an extra 1% of the balance owing for each month your return is late, up to a maximum of 12 months

For this reason, the moment you realise that you have missed the deadline, get your taxes filed and pay the balance. This will cut down on the cost of the incident and draw a line under it. No panic, no further stress.

What you do need to be careful of however is repeatedly missing deadlines. In this case, there may be problems afoot. Repeatedly missing tax deadlines will result in penalty called a federal, and provincial or territorial repeated failure to report income penalty. This can be costly.

The single best way to avoid any problem such as this is to not miss deadlines in the first place! Ensuring that you know when deadlines are is vital, but you should also have some system in place which means that around one month beforehand, you start to collect the information you need. By filing at the right time, you can prevent a major headache and save cash for your business.

Where Cloud Accounting Comes In

Cloud accounting is a good way to streamline your entire accounting processes, and therefore ensure that you never miss a deadline. When everything is synced, it’s borderline impossible to find anything too hard to face! Cloud accounting means that reports can be pulled from your up to date accounts with ease, and this information will form the basis of your tax return, ensuring that you file at the right time, avoiding penalties in the process.

The other major plus point of opting for Cloud accounting is that it is the most up to date and accurate reflection of your company’s performance levels. At any time you can choose to look at how your business is doing, and make decisions accordingly. You don’t need to worry about inputting endless data, because your software will input it automatically, when everything is synced together, e.g. automatic invoicing and receipt scanning.

There’s no doubt that filing taxes can be a headache, but most of the time that issue is down to ineffective and hard to use accounting processes. When you streamline everything and make it easier, nothing is a headache.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team