How to Fill out Your W-8BEN Form

The W-8BEN form is not applicable to every situation. In fact, it’s one of those tax forms that only comes into play under very specific circumstances. But if you’re a Canadian resident or non-resident who receives income from an American source and you meet the criteria outlined below, you must complete this document before the end of the tax year (that is, by December 31st). Failure to do so could result in an error called ‘backup withholding’ being placed on your payments. 

What is W-8BEN and Where Does It Come From?

The W-8BEN form was first introduced in 1996, and it was designed to allow taxpayers to certify their non-U.S. status and to claim a reduced rate of taxation on their U.S.-source income. Normally, when you earn income from a non-U.S. source, you’re only taxed at the rate of your home country. However, if you’re also receiving income from a U.S.-based source, your tax situation becomes more complicated. This is because the IRS is obligated to ensure that all taxpayers pay their fair share of U.S. taxes. The W-8BEN form was designed to help the IRS manage this situation by providing taxpayers with an estimate of their ‘average’ U.S. federal tax liability. This number is then used to determine how much ‘backup withholding’ (or U.S. tax) should be deducted from your U.S.-source income. The W-8BEN is only available in printed form, meaning that taxpayers have to fill it out by hand and then mail it to the IRS.

Why Do I Need to Fill Out a W-8BEN Form in Canada?

As we mentioned above, a W-8BEN is used to determine your average U.S. federal tax liability. In most cases, this means the IRS will apply a flat 25% rate to your U.S.-source income. In some cases, taxpayers might even be subject to the higher rate of taxation without the W-8BEN form As we saw in the example above, the W-8BEN is used to determine your average U.S. federal tax liability. This average is then used to determine the correct rate of taxation for your U.S.-source income. The correct rate of taxation is then applied to your U.S.-source income to work out your total U.S. federal tax due.

Non-residents who earn a certain amount of U.S.-source income will be subject to a higher rate of taxation. The amount of income that triggers the higher rate of taxation varies depending on your specific situation. As a general rule, the higher rate will kick in when you earn more than 82.5% of your average annual income from U.S.-source income.

When You Don’t Need to Filing a W-8BEN Form in Canada

If you earn less than the threshold outlined above – and you’re not engaged in a profession or trade that’s considered ‘Highly-Sensitive’ under U.S. law – then you don’t need to fill out the W-8BEN-e form. If all of the above criteria are met and you don’t need to fill out a W-8BEN-e form, you should use a W-8BEN certification.

How to Fill Out the W-8BEN-e Form in Canada

Let’s break down the details of the W-8BEN-e form and take a closer look at the information you’ll need to provide when filling it out. The first thing you’ll need to do is check the ‘box’ in section 1 to indicate that you’re filling out the W-8BEN-e form. This should be followed by a declaration to confirm that the information you provide on the form is accurate and complete to the best of your knowledge. Next, you’ll need to identify the source(s) of your U.S.-source income. This includes income from employment, pensions, annuities, real estate rentals, royalties, and interest. You’ll then need to identify the average percentage of U.S.-source income relative to your total annual income. You’ll use this percentage to determine the correct rate of taxation for your U.S.-source income. Finally, you’ll need to sign the form and indicate the period of time to which the form relates. You can do this by selecting the ‘start date’ and the ‘end date’ from the drop-down menus provided.

 Capex CPA has qualified and experienced business consultants to help you with your W-8BEN Filing. Contact us today click on this link —> https://capexcpa.com/contact

-The Capex CPA Team

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Should I Do My Own Taxes or Hire a Professional?

Money is a big part of our lives. Without the economy, there is no working structure that we know how to follow to balance how we live.

Being dependent on such a viable resource requires organization and tracking so that the money circulating the world can be re-used to generate more business, creating more money.

This is where personal income taxes come into play.

Thankfully you don't need a background in accounting or be good with numbers to complete your taxes. Yet, many can find it tiring after a while, as collecting all your paystubs and purchases can take time and effort.

Time in which many might not have, which is why it's lucky to say that individuals are not required to keep financial records by law, meaning that hiring someone is a possibility.

Which brings us to the question should I do my taxes or hire an accountant?

Some things to think about

●      Doing your own taxes will take time and patience.

●      If you seem to have no time on your hands, hiring a tax professional might be the best option.

●      A certified accountant is more expensive than hiring that of a non-certified accountant.

●      Accountants and certain bookkeepers can help with tracking personal finances, including your taxes.

●      Doing your taxes allows for financial insight while being a money saver compared to hiring someone else.

Doing Your Own Taxes

Many people enjoy doing their tax returns. It can be easier for those living quite simple lives, and some enjoy the math and being organized when it comes to their expenses.

Some are even very interested in the tax system and its changes, preferring to be up to date and financially aware.

If any of these is the case for you, outsourcing the task to another individual is probably an unnecessary step.

Hiring A Tax Expert

Using a professional accountant often means that those taxpayers can take full advantage of all entitlements and deductions to which they are entitled without missing any opportunities.

Besides just completing tax returns, an accounting might also offer other forms of financial assistance and planning.

When Should You Hire an Expert?

If you feel as though you don't have the time or patience to record your income and expenses every year, you can always engage in professional help. Anyone can hire a qualified professional, especially those who believe their time is worth more than they'd pay for an accounting service.

But who does this type of work exactly? When many talk about hiring a professional, they often use the term accountant loosely to refer to workers who revolve in mathematics and statistics, such as bookkeepers and tax preparers; even in some cases, a tax advisor can get the job done.

It's always best to review as many opportunities as you can when hiring someone to take over your taxes, as each firm has its own set of services that are more than likely different from any other company.

This means it's best to review so that you end up with a company that works best with your needs.

Lost on where to begin? Don't hesitate to look at CapexCPA, an online accounting platform that uses some of the best cloud technology to this date to help you figure out all your accounting needs and wants.

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How To Write Off Personal Vehicle Expenses

When it comes to Canadian taxes, there are numerous expenses people can write off. Still, few people know; there are several car-related costs an individual can obtain that could help earn a bit of income at the end of tax season.

So, the real question you should be asking yourself is: have you used a work vehicle or any transportation device for business purposes during this year’s tax season?

If the answer to this question is yes, this article will be a great guide to help explain which vehicle expense claims you could be making on income tax within Canada and how the process works.

The two types of claims for motorized vehicle expenses

Currently, there are about two different claiming styles an individual can use, broadly speaking, when looking to reclaim tax reduction money.

1. Those related to the usage of a vehicle (this claim can be found online 9281 – Motorized vehicle expenses).

2. The taxes related to purchasing a motorized vehicle (This can be claimed as Capital Cost Allowance).

What types of vehicle expenses can be written off?

Luckily for business owners, there are quite a few vehicle expenses that can be claimed regarding anything remotely connected to the use of a work vehicle; some of these expenses include:

. Fuel and cost of oil

. Leasing costs

. License and registration fees

. Insurance

. Any maintenance and repairs

Owning vs. leasing your vehicle

There can be a difference between driving a passenger vehicle that is your own or one that is leased. For each, you may have specific limits on the number of deductions that can be taken for interest.

If someone else is sharing the ownership or loan with you, the limits still apply, but the total sum you and your joint partner can’t exceed the amount one owner is entitled to. Whether you decide to lease or buy a vehicle, the CRA allows the same number of deductions for the expenses such as gas, oil changes, insurance, etc.

The best decision to make when discussing these two options is to seek out self-employment experts for advice to better understand which choice suits what you are looking for.

Final words

The best advice anyone could give to you regarding taxes is to keep all your receipts!

If you decide you want to cash in this tax season to try to make some money back, when it comes to your mode of transportation, it is best always to hold every receipt or piece of document you can to claim business expenses the right way.

Though many of these rules and guides may seem tedious and easy to forget, make sure you are taking a few minutes every day to tuck away any receipts in your console or documents folder. Which depict most vehicle expenses, will give you the best chance at feeling like a winner during tax season.

Connect with an accountant today!  Click on this link —> https://capexcpa.com/contact

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When To Register for GST/HST

If you are in the midst of starting up a small business, it might be the right time to think about when the best time is to register for GST.

GST is something that any profitable business has to sign up for at some point. Whether you are a contractor, consultant, sole proprietor, or entrepreneur, when you hit a fluctuation in your revenue that exceeds $30,000 in over four quarters, you then must have to register for your first ever GST/HST number.

It is good to note that there are different registration requirements when filing for GST/HST.

Suppose your company is a non-profit, public service body, or taxi/ride-sharing operation. In that case, you must review the CRA website to see what category your company falls in, or you may prefer to speak with your accounting professional to decipher what next steps you'll need to take.

What Is GST/HST?

A GST/HST is a goods and service tax that business owners or service providers must charge for any item or service they sell or provide to customers while being within Canada.

You will notice this tax is included in the final prices of commodities and is always paid by the customer, never the business owner. Instead, your job as the owner is to then pass it on to the government.

After you register your company, your GST/HST number will be part of your 'business number,' which the Canada Revenue Agency holds. You can easily register for that number online at Canada.ca by either fax, mail, or telephone at 1-800-567-4692.

What do You need for Registration?

There are four things you need on hand when registering for GST/HST These things include:

1. Effective Date of Registration – The effective date can usually be the day you've stopped being considered a small supplier.

2. Fiscal Year for GST/HST purposes – Usually, the fiscal year for GST purposes is generally the same as your income tax year.

3. Total Annual Revenue – This is a complete sum of the revenue you have made in a year; if you are a newer business, it's possible to give CRA a reasonable estimate.

4. Basic information – This means your general personal information.

Once you have all four of these, registering can be done much more efficiently and will take up less time.

Are There Any Benefits to Registering?

In the end, you have no real choice in whether or not you want to register. However, to counterbalance the money you've lost in paying the government taxes, you as the business owner can claim sales tax that is chosen from a wide variety of expenses that relate to your business.

This is a pretty cool aspect that should be thought about because by submitting these sales tax you are essentially reducing the amount of GST/HST you must give to the CRA.

At Capex, we work to help clients get ahead financially by using modern cloud technology designed to streamline their accounting. Together, we can track all your business expenses, putting you on the right track towards fulfilling your government tax filing obligations.

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How to Incorporate a Company in Canada

As you probably know, there are a number of ways to operate a business in Canada.  Examples are a sole proprietorship, partnership, or corporation.  If you are seriously considering incorporating, there are some of the basics:

Jurisdiction

You can choose to incorporate in any of the Canadian provinces or territorial jurisdictions, or one federal jurisdiction.  Generally, it will either be the province or territory where you live or operate or to the federal jurisdiction in play.  Federal corporations are covered under the Canada Business Corporations Act and they can operate anywhere in Canada, subject to provincial regulations.  Provincial corporations are governed by provincial statutes and laws.  If you are only incorporated in a single province but want to do business in another, you need to make an extra-provincial registration.  There is a cost difference between federal and provincial filings.

Some of the things to consider when deciding on jurisdiction are where the business will be conducted, name choice and importance, and plans for future expansion.

Name

Choosing a corporate name can be more critical and more complex than you think.  While there are no mandatory requirements, each jurisdiction has specific guidelines.  In most cases, Corporations Canada will require distinctive and descriptive elements.  Many proposed names are rejected.  You should probably hire a firm that specializes in corporation names and have a stockpile of at least three choices.

The name needs to be available.  That is, no one else is using it.  There are computer programs that will help with the research.

Articles of Incorporation

There are basic decisions that need to be made.  Attorneys specializing in corporations can help you as well as your accountants.

•       Registered office location

•       Classes and volume of shares that can be issued

•       Share transfer restrictions

•       Directors, minimum and maximum

•       Business activities and restrictions

The articles must be signed in duplicate by at least one incorporator who is competent, 18 or older, and not bankrupt.  Then all the paperwork, including name search, and filing fee must be filed.

Records

While waiting for approval, you need to start your record keeping.  By law, you need to have specific corporate documents including, but not limited to:

•       Copy of the Articles of Incorporation

•       Bylaws

•       Minutes of shareholder meetings

•       Resolutions

•       Minutes of Directors' meetings

•       Directors register

•       Securities register

•       Share Transfer register

•       Copies of all forms filed with the government

•       Copy of any unanimous shareholder agreements

All of this needs to be organized for handy reference and is necessary for many corporate transactions. 

Documentation

The first meeting of the Board needs to have written approval of:

•       Bylaws

•       Issuance of shares

•       Election of directors

•       Appointment of officers

•       Shareholder agreements

•       Any other resolutions

You will also need to apply for any permits, licenses or patents.  There will also be some industry-specific regulations that you may need to take care of

Apply for a federal Business Number; register any non-corporate names; obtain a provincial sales tax account, Employer Health Tax, and worker's compensation. 

Finances

You will need to establish a bank account and set up financial accounting (books). After all this, and all approvals, you can actually, legally do business.

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

- The Capex Team

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Should I Lease or Buy a Car for Business?

In Canada, business owners can claim a tax advantage for the use of a vehicle for business purposes.  The CRA has some very strict guidelines.

The amount of the tax deduction is directly related to the amount of time the car is used for business.  For example, if the car is used to generate income for 60% of its use, then you can claim 60% of the lease cost.  There are additional expenses that can be claimed like insurance, repairs, licenses, etc.  There is a current cap in Ontario of $800 plus HST.  It is a good idea to make a large down payment on the lease since you may not be able to deduct the full use of the vehicle in the first year of the lease.

Purchasing a Vehicle

Purchasing a vehicle is different.  The tax deductions depend on the amount of the car at the time it is purchased and whether it is purchased outright or financed.  If the car is purchased in full without financing, the amount of purchase is spread out (amortized) over the useful life of the vehicle. Using depreciation, the amount is included in a Capital Cost Allowance (CCA) and a percentage is claimed each year.  There is a maximum allowance of $30,000 to prevent the purchase of a luxury vehicle.  There may be some incentives if you buy an energy-efficient vehicle by upping the maximum price to $55,000. 

If the car is financed, the interest paid during that year is a tax deduction, up to a maximum, of course. A proportionate amount of the vehicle usage, insurance, gas, license, etc. is a legitimate claim.

Sole Proprietorship

If your business is a sole proprietorship, you can deduct mileage on either a leased or purchased car.  You can use either the standard rate or the actual costs for a lease.  If you want to use the standard mileage rate on a leased vehicle, you must use this rate starting with the first year's tax filing and continue with that for all subsequent years. 

Leasing incorporates a number of expenses unrelated to taxes.  When you return the car to the dealership at the end of the contract, you must have completed all necessary repairs so that the vehicle is in stable condition.  There is also generally a limit on the number of kilometers and charges for excess driving.  The final issue is the interest rate you will be charged and billed on the loan.

Credit Rating

The last factor to consider is the credit rating.  With bad credit history, the payments will be higher regardless of whether you purchase or lease.  For someone with a bad rating, leasing would be the less desirable decision since the car could not be used as collateral.

Since both options have advantages and disadvantages, it may come down to a personal decision.  For a good-sounding board, talk with your accountant to see if he or she has any thoughts on the matter.

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

- The Capex Team

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Benefits of a Holding Company

Accountants often encourage the formation of a holding company.  If you have wondered if it is right for you, read on.

A holding company is incorporated but is used only to hold investment, but not to operate any type of business.  The holding company can own shares in any public company, real estate, shares in private companies, or other interest-producing investments like bonds.

 There are some very valid reasons to use a holding company.

 Asset Protection

If something happens to the operating company, the assets are kept safe from creditors.  As an example, your operating company is sued and that puts all the assets held in the operating company at risk.  If the profits from the operating company were transferred to the holding company and invested through that holding company, it would be much more difficult for the plaintiff to access that money should the operating company lose the lawsuit.

 Tax Savings

Under certain circumstances, corporations have a lower tax rate than individuals.  Recently there have been changes in the tax law that can make it advantageous for the individual to earn passive income through a holding company.  Some of the details surround the province, the amount of both corporate and individual income, and the type of income earned.

 Estate Planning

Passing assets, especially family-owned businesses, from one generation to another can be easier by using a holding company. Using a tactic called estate freeze will allow the owner to make a successor a shareholder and move any future growth of the company to the successor.  At the same time, it allows the owner to remain in control of the business operations.  It has the added effect of limiting the income tax liability at the time of the owner's death.

 Lifetime Capital Gains Exemption

Most small businesses in Canada fall under the Canadian Controlled Private Corporation.  If the company is sold there is no tax on a gain of up to $867,000.  There are some very specific rules to follow like 90% of the business's assets are used to run the company; 50% of the assets must be used to run the company in the two years prior to the sale, and the owner must have held the shares for at least two years prior to the sale.  A holding company can be beneficial under the right circumstances. 

 Tax Deferral

This centers around the timing of when income is earned.  This means that some of the tax can be deferred to put off from one period to another, saving money.

All of this probably sounds great, but, just like anything, there are some downsides like incorporation and ongoing costs, complicating your current operations, and the administration of two companies.

As you can tell, there are a lot of rules and details around using a holding company.  If you think it might be a solution for you, consult with your accounting firm.  They will be able to analyze your personal and corporate circumstances and help you decide whether a holding company will be an advantage or not.

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

- The Capex Team

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Accounting for Amazon, Ebay, Etsy, Shopify, and Other E-commerce Businesses

Accounting Solutions For E-Commerce Businesses

If you run an Amazon Store, a Shopify business, or any other type of e-commerce investment, you will need to keep records and store them in a very organized manner. Accounting for an e-commerce business is no different to accounting for a brick and mortar business, but there are several more choices you can look into.

When it comes to the financial side of a business, there are often several common questions that an e-commerce business has. These include the following: 

•   Should you think about incorporating?
•   Should you charge sales tax?
•   Should you charge provincial sales tax?
•   Should you register for sales tax in the US?

Let’s explore these in turn.

Should You Think About Incorporating?

If you have worries about liability then incorporating is a good option. The reason is because it gives you more protection over your assets (personal) from creditors. In addition, if you’re making good profits, you should also consider incorporating, from a tax point of view. 

If you are going to incorporate, you might not have a clue where you should start. E-commerce businesses are truly global, after all. Put simply, you should incorporate in Canada if you do most of your business from there, i.e. that is your location physically.

Should You Charge Sales Tax? 

This depends on the products you’re selling online, and how much money you’re earning. The golden figure is $30,000 per year, and in that case, yes you will need to register and charge sales tax. You could still decide to do so, if you earn less.

When setting up your platform (Amazon, Shopify, etc), you should ensure that your setup allows you to collect this tax from multiple areas.

Should You Charge Provincial Sales Tax?

This depends on the province you’re in. You should check ahead of time to find out the specific areas which demand this, and which don’t.

Should You Register For Sales Tax in The US?

This is a complicated area, and a personal decision unless you decide to incorporate in the US. If you have an office in the USA, whether you are personally there or not, you’ll need to register. If you don’t, then you need to think about the advantages and disadvantages of whether to register or not. 

E-commerce businesses fall into that grey area much of the time, and the US sales tax side of things, when not physically in the US is one of those areas. If you have a lot of customers from the US, this is something you might want to consider registering for.

Overall, ensuring that you cover the absolute basics when it comes to tax and accounting for your e-commerce business is vital. Just because you don’t have a static office and employees, doesn’t mean that you are exempt from the complicated nature of tax requirements, and it actually means you’re more likely to miss something important, if you don’t do your research.

We hope this post helps you cover all bases and helps you pick a platform which allows you to charge taxes whenever necessary.

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

- The Capex Team

What is Working Capital?

What is working Capital?

Capital is another word for money. All businesses in order to purchase assets and maintain their operations or to produce goods and services must have capital. In the most basic terms, ‘Capital’ is the money invested in a business to generate income. Instead of simply spending it like cash, capital is a more durable concept and it is used to generate wealth through investment. The term ‘Working Capital’ is a part of total capital used (or more technically capital employed) in the business, but it comprises of short term assets and short term liabilities only. ‘Working Capital’ is often defined as the difference between short-term assets and short-term liabilities. In simple words, working capital denotes a ready amount of fund available for carrying out the day-to-day activities of a business enterprise. Capital is the means of investments of an enterprise with long term consequences, whereas working capital is that part of capital used for short term financing like routine operations or for a term not exceeding one accounting period.

Importance of Working Capital in Your Business

Without working capital, you wouldn’t be able to stay in business. A business uses working capital in its daily operations. Any business should have adequate funds to continue its operations and it should have sufficient funds to satisfy both maturing short-term liabilities and upcoming operational expenses. Working capital is a common measure of a company's liquidity, efficiency, and overall health. It is actually a yardstick that measures whether or not the company has enough assets to turn into cash to pay upcoming expenses or debts. Because it includes cash, inventory, accounts receivable, accounts payable, the portion of debt due within one year, and other short-term accounts. A company's working capital reflects the results of a host of company activities, including inventory management, debt management, revenue collection, and payments to suppliers.

How Working Capital is Calculated

Thus, ‘working capital’ is the difference amount between short-term assets and short-term liabilities. To understand this clearly we must have an idea on what are the ‘short term assets’ and ‘short term liabilities. Assets are a company's resources— a useful or valuable things that the company or person owns and which give some economic benefit to a business. Examples of assets (both long term and short term) include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, plant and equipment, and goodwill, etc.

Current assets are short term assets only either in the form of cash or a cash equivalent which can be liquidated immediately or within an accounting period. Examples of current assets are cash in hand and bank, debtors, bills receivable, short-term investments, etc.

Liabilities (both long term and short term) are the obligations or what a business owes to the outsiders. It results from purchasing of goods on credit, bank loan, payable accounts like salary payable, taxes due, etc. Current liabilities are short-term liabilities only of a business which are expected to be settled within 12 months or within an accounting period or a normal operating cycle. Examples of current liabilities are bank overdraft, creditors, bills payable, short term loan, etc.

Working capital is calculated by subtracting current liabilities from current assets. Working capital is the easiest of all the balance sheet calculations to calculate. Here's the formula you'll need:

Working capital = Current assets - Current liabilities

It's that simple. If current assets are greater than current liabilities, the company has a positive working capital, meaning it has extra cash on hand to fund growth projects. It also means the company has a nice safety net in place.

Say, from a company's balance sheet we find that a company has $1000 in the bank, $500 as cash in hand, $5000 as inventory and & $500 receivable from customers. Then its total of current asset is $7000. Now similarly, its balance sheet shows that the company owes $2000 to its suppliers, and it has short term loan amounting $1500. So the total current liability of the company is $3500. Therefore, the Working Capital of the company is $ (7000-- 3500) or $3500.

Why Working Capital Management Matters

If we divide the current assets of a company by its current liabilities, we get a figure which is called ‘Current Ratio’ (or working capital ratio). This ratio attempts to measure the ability of a firm to meet its current obligations. It can be used to make a rough estimate of a company’s financial health. Normally, a ratio much higher than 2 (i.e., current assets double the current liabilities) is a sign that you’re not properly using your funds – either you are carrying too much inventory or not capitalizing on extra cash by investing in growing your business. On the other hand, a Current Ratio below 1 suggests that the company may not be able to meet its obligations in the short run. Each business or industry might have its own ideal current ratio depending upon its practice. Acceptable current ratios vary from industry to industry and are generally considered between 1.5 and 3 for healthy businesses.

Hope this Blog post will help you to understand the importance of working capital and guide you to manage it effectively in your business. However, if you are overburdened with other responsibilities, or need some real professional assistance, we can help demystify and help navigate constant change.

We help our clients looking to get working capital loans to help finance their future growth. Have a question on your growth needs? let’s have a quick chat!

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

- The Capex Team

Top 3 questions we get asked. Literally everyday!

If you have a business can’t you expense everything?
This is a common misunderstanding amongst new business owners. There are many benefits of having your own business and having the ability to “expense” business expenses helps to reduce your taxes. This is because the tax act allows for business owners to be taxed on Net Income which is the net of Revenue minus Expenses. You have to be careful here because not all your expenses can be expensed such as personal clothing, Gym memberships and LCBO liquor. Generally, your accountant will provide guidance and restrict the personal expenses so you don’t get burned when it comes time for CRA Audits.

Is my data safe in the cloud?
Your data is actually safer in the cloud than on a PC. On the cloud your data is stored behind servers which are protected by companies like Quickbooks who spend millions of dollars to ensure the security upkeep. Now compare this to your $29.99 antivirus program on your PC. The cloud also has the benefits and ability to safe guard your financial data as no one can walk away with it. With a PC desktop based if someone has the backup of your data they now have complete historical access to customers, pricing and other things. So short answer is yes the cloud is much safer in the long run and also cheaper when accounting for the risks of having a desktop based.

What kind of Support should I expect from my accountant?
It’s easy to make a sale but it’s harder to provide robust support. Client’s almost always leave a business because of customer service and lack of support. Most people are so focused on the ‘next sale’ that they lose vision of the bigger picture. It’s important to adopt technologies like Join.me screen sharing which allows our team to effectively troubleshoot and resolve any issues clients have. The after support is so critical to the success of your business that we consider sales as #2 and support as #1. Our clients become our sales agents because of the awesome support they receive.

Business owners usually rush to hire an Accountant on the basis of them having Accounting and Tax experience. Although having Accounting and Tax experience is critical for a good accountant a great accountant would also have real life business experience. It’s important to decide on a Accountant that has business experience so that they can share those insightful business knowledge with you. Ask yourself this: Wouldn’t you rather have a strategic finance partner than a number cruncher? 

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

- The Capex Team

3 Tips for Succeeding with an E-Commerce Business

Most business owners will tell you that just starting out is the most exhilarating and stressful time of owning a business. The excitement and anticipation run high, but the funds run low. How can you make ends meet and ensure success for your new business? Our e-commerce tips will help.

1. Rely on E-Commerce to Boost Your Business
You may have heard that e-commerce can boost businesses, but you might not know exactly what e-commerce is. According to BigCommerce, “Essentially, e-commerce (or electronic commerce) is the buying and selling of goods (or services) on the internet. From mobile shopping to online payment encryption and beyond, e-commerce encompasses a wide variety of data, systems, and tools for both online buyers and sellers.” Because e-commerce is one of the fastest-growing aspects of retail today, business owners turn to it as a solution for growing their business. In fact, many find that they are more successful online than they are in a brick-and-mortar store because they can reach so many more customers.

There are several other reasons to rely on e-commerce, according to The Balance:

●      A website and online store establish your presence and improve your company image.
●      You can sell 24 hours a day, seven days a week, 365 days a year; you never close, and your customers             can always buy.
●      You can provide better customer support by creating videos, sharing frequently asked questions (FAQs),          offering product spec sheets, and making it simple for customers to contact you using a contact form.
●      You will have low start-up costs if you are starting from scratch online; you won’t have to purchase or                 lease a building, buy or rent vehicles, or hire excess staff.
●      You take advantage of the fact that the internet was built for business; customers are one click away                 from your online store, and you can accept orders and payments directly.
●      You have the flexibility of living and working from anywhere when you sell online. Simply set up your                 home office with any special equipment you might need, and you’re ready to go.

2. Put Your Business Online in the Right (Inexpensive) Way
The trick to relying on e-commerce is creating a website that appeals to customers and delivers a seamless shopping experience. Thankfully, there is a plethora of online website builders and services that help small business owners build their websites, even if you don’t have any web design know-how or experience.

Many small business owners who are just starting out choose a free website builder and then hire a website designer when they can afford it. These designers and developers have the experience needed to migrate your original content to your new site and to make the transition without affecting your existing customers.

3. Use Information Available Online to Boost Your Business
Today, customers rely on online reviews to make purchase decisions more than ever before. In fact, 84 percent of people now trust online reviews as much as they trust their friends, and 91 percent of people regularly or occasionally read online reviews. Because online reviews matter, you need to give your customers a way to leave reviews for your products and services. Consider emailing customers after they make a purchase to entice them to write a review, give you a star-based rating, or complete a customer satisfaction survey.

You also can create social media profiles for your business to give customers another avenue for finding you, and writing and reading reviews. Also, link to your social profiles from your website to make it easy for customers to start following you, and so they can share news and reviews about you with their followers. In fact, social media marketing is one of the best ways to increase sales and drive more traffic to your site.

You also can decide which products to sell and ensure you meet more customers’ needs by using information available online. For example, read reviews on Amazon or your competitors’ sites. Uncover what people like and dislike about the products, services, and companies and what they would improve. The more insights you can gather online, the better positioned you will be to meet needs and grow your business.

To succeed in business, you should rely on e-commerce. Put your business online by creating a website, online store, and social media profiles. Then, use other information available online to make sure you have found your niche market and are meeting customers’ needs.

Written by - Larry Mager

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

Firm of the Future 2017 - CapexCPA

Firm of the Future 2017 - CapexCPA

Quickbooks just released the newest firm of the future accounting firm winners who have been recognized for leveraging the key trends in the Accounting industry. The four major elements being the cloud, service, technology and power reporting. When these four elements are put together, they allow us to create a strategic partnership with our clients and become a Firm of the future.

CapexCPA applied for this contest, where a total of 15 firms worldwide were selected with 4 from each country being Canada, USA, UK and Australia. In Canada, Quickbooks ranked our firm as one of the top 3 cloud accounting firms. We feel honoured to be recognized as one of the firms of the future. At CapexCPA we strongly believe in our signature DNA elements to help our clientele. Below is our take on how we became a Firm of the future. 

The first DNA element is Cloud. 
We feel that using the same cloud accounting platform like Quickbooks allow our clients to understand the numbers better. The cloud eliminates confusion and helps with timely decision making. Keeping transparency is critical in establishing a trusting relationship with our clients.  

The second DNA element is Service.
We make every effort to respond to all emails, phone calls, texts and social media to help communicate with our clients. Providing speedy responses to questions is essential to play the Virtual CFO role. 

The third DNA element is Technology. 
Using technology in every facet from client on-boarding to the tax year-end and repeat. We only use the best in class software providers. Our app closet essentials include Quickbooks, Hubdoc, Wagepoint, and Plooto. We wouldn’t be able to run our Cloud practice without these software platforms. 

The fourth DNA element is Power-Reporting.
Providing our clients with strong analytical reports that extend the Profit & Loss and Balance Sheet is what helps to differentiate us from traditional accounting firms in the industry. Our clients love getting weekly/monthly cloud reports which help resolve real operational issues before they become problems. 

We look forward to working towards introducing a completely paperless and cloud based accounting experience for our future clients. It’s been an amazing ride thus far, and we look forward to growing and helping to pioneer the future of Cloud Accounting. 

Choose Change. Choose Capex.

https://www.firmofthefuture.com/content/intuit-announces-2017-top-four-global-firms-of-the-future/

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

- The Capex Team

Top 5 Benefits of Cloud Accounting

If you have an email account from Microsoft or Google, then Cloud based technology is not a new concept to you. The technology has finally hit the Accounting industry and is making a huge difference and changing the role of Accountants for years to come. The cloud provides great benefits that save time and money which is re-invested into your business.

Moving your accounting from "On-Premise" to "The-Cloud" can bring significant benefits. Not only is it cheaper, more secure but also accessible comparatively to the desktop counterpart. Below are the Top 5 reasons I think Cloud technology is the best thing after bread.

1.       Accessible anywhere providing the required flexibility - Cloud accounting software allows the user to access their information securely 24/7 from anywhere all that is needed is an internet connection. You no longer have to buy multiple licenses or carry your laptop everywhere. As small business owners are out and about and now have access to the engine room anywhere. That quick report to see how your business is doing. Done.

2.       Cloud Accounting is a time saver. This is taking the traditional method of Accounting and reversing it on it's head. Connecting your online banking to your cloud software package means the bank feeds from your credit card and bank card statements come directly through to the software system. The reconciliation process of accounting used to be a huge headache but with bank feeds your constantly synced to the bank so your reconciliation is never off. No data entry. More strategy.

3.       Build your customized cloud software. In the past building your own customized solution would have been extremely expensive with hiring IT consultants and other experts. Products like Xero and Quickbooks online have an ecosystem of apps to choose from which are called "add-ons". Some add-ons are free while others carry a fee of a few extra bucks monthly. Thinking of automating your Accounts Receivable collection process...Yup there's a app for that!

4.       Sharing and collaboration has been overhauled. In the old days the accountant would spend most of time "converting" a Simply Accounting file to a useable Quickbooks format. Once this conversion was completed the accountant would then move on to the actual year-end process. With the ability of sharing and collaboration the Accountant is now put in a position of having a conversation with clients during the year not just during the year-end. No more copying data to USB drives sharing is effortless.

5.       Improved security. A lot of people object to the security element of financial information in the cloud. Actually cloud-hosted software is more secure than software hosted locally on your desktop or your own server. The data is stored in high security storage facilities and your data is encrypted meaning it is unreadable to hackers. Additionally, your data is backed up multiple times in a day in many different locations to help protect your data. If your laptop is stolen well that's okay just buy a new one because your data is safe. If you are comfortable using online banking, you should be equally comfortable using Cloud technology.

Essentially with Cloud technology you have the ability to compete with bigger companies on a technological level but get to keep that small business owner mindset. I think this marriage of the two principals will help grow businesses. Most businesses see Accounting as a necessary tax compliance, it is but Accounting is the business language and if you know the language well you can really start to realize the benefits the information can provide. 

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

- The Capex Team