Accounting Trends in 2022: Grow Your Business Faster

Given that the consequences of the pandemic are still relevant, businesses across industries are looking at different ways to ensure sustainability over prolonged periods of economic uncertainty. The year 2020 saw businesses adapting to technology at an unprecedented pace across diverse industries. Accounting as a function has been gradually adapted to technological advances over the past few years. According to reports, 83 percent of accountants agree that investing in digitalization is necessary to keep up with the market. This fact is separate from the adoption of technology, which has helped businesses operate remotely and remain sustainable.

As we work through 2022, here are a few accounting trends to help your business grow faster and improve your business’s profitability.

Accounting automation and software solutions

Automation for accounting processes has been gaining ground steadily; it helps reduce the workload for time-consuming and attention-intensive tasks while ensuring higher accuracy and reduction of errors.

Additionally, increasing labor costs (29%) represented one of the biggest concerns for accounting firms in 2020. Therefore, the need to shift certain functions to automated processes makes sense. This situation also aligns with the high furlough rate that occurred as a result of the pandemic. Together, these factors make a stronger case for accounting automation.

It also helps to keep in mind that automation of accounting processes does not make accounting professionals redundant. Instead, automation takes over high-volume, time-consuming work from human capital. This step ensures that trained and skilled accounting professionals can shift their focus from resolving accounting and bookkeeping problems to actual business management.

Reports reveal that accountants are either already training for or considering training in other areas, including client management and business advisory services (63% respondents) or business management (59%).

Outsourcing accounting functions

More businesses realize the benefits of outsourcing as economic uncertainties continue to loom. The numerous benefits of outsourcing “detailed attention” intensive functions such as accounting and bookkeeping include:

• Ensuring reliable, error-free accounting and bookkeeping work

• Freeing up trained resources so they can shift their focus to higher-priority work, including financial management and auditing of accounting reports

• Delivering value to existing work by making it more accurate through automation while extending support to new business efforts through a proven system and infrastructure.

• Reducing expenses associated with hiring, training, and retaining resources

Shifting to Cloud Accounting

From on-site operations to cloud-based accounting, the shift has been gradual and noticeable. Given the multiple benefits of cloud-based accounting, businesses can add value to deliverables without increasing costs and expenses. Here are some key considerations why shifting to cloud accounting makes sense for accounting practices:

• Cloud accounting helps businesses store and save information in the cloud and access it easily.

• Cloud-based access saves on expenses associated with needing a physical location; renting or owning can be costly, especially for small to medium-sized businesses. A Forbes report says how moving to the cloud saved businesses 30-50 percent overall, compared to refreshing their on-premises infrastructure.

• Cloud accounting helps ensure better security and safety of data, including customer data, because of digital measures like password protection, encryption, and authorized access to select individuals.

Leveraging professional assistance: Partnerships

When it comes to cloud accounting, electronic storage, and secure backups, all of these require a robust infrastructure. These requirements can prove to be expensive for a business just starting out. Outsourcing accounting and bookkeeping functions or partnering with professionals can help ensure your practice aligns with industry norms. Given the proven systems professionals possess, partnering with them allows businesses to access resources otherwise inaccessible to them. Because cloud accounting is technology-based, it also needs expert deployment. For professionals, this is easier because they have resources ready to hit the ground running.

Consider speaking to your Capex Financial and Tax advisors to learn more about how professional accounting services, bookkeeping services, and customized automation can help your business. For an in-depth discussion on this click on this link —> https://capexcpa.com/contact

-The Capex CPA Team

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Here’s How to Decide What Name is the Best One for Your Business

As a brand, you only have about 10 seconds to make an impression on a potential customer. So, what can you get right in this short time? It should be the most unmissable thing anyone notices about your business — its name.

While entrepreneurs will turn to many resources to find the perfect company name, it doesn’t need to be so complex. One of Capex CPA partners - Squadhelp, has done this more than 35,000 times, and they can confidently tell you that there are three major steps to acing the brand name game. Let’s dive straight into these:

1.   Study Your Brand

The first step to naming your business must be intrinsic. In order to converse clearly with your audience, you should first be very clear about your identity.

Your brand simply implies who you are and how you want to be seen. This branding process directly shapes your naming process.

For example, let’s talk about Nike. It is an epic business name. But rarely does anyone know what Nike even means. Its awesomeness is directly a result of its brand story and how its founders wanted it to be perceived. The outcome is a brand that is seen as a winner with a go-getter attitude. And it helps that Nike means the Greek goddess of victory.

So, how can you begin to understand your brand well? Start with a solid value proposition or elevator pitch, or USP. You can suit the terminology to your taste, but the point is that you should be able to describe your brand in as few words as possible with the utmost clarity. You can use Sequoia Capital’s website for this activity. They do a great job at breaking a brand down to its essence.

For example:

●     DoorDash: DoorDash is an on-demand delivery service.

●     Airbnb: Airbnb links people around the world with unique homes and unforgettable experiences.

●     Whatsapp: Whatsapp, now part of Meta, is an end-to-end encrypted mobile messenger app.

What Your Brand’s Tone

Once you have the value proposition, it’s equally important to understand and articulate your brand’s tone. This defines its character, attitude, and personality. The five most typically used brand tones are:

●     Modern

●     Emotionally Powerful

●     Pragmatic

●     Playful and Fun

●     Pre-eminent

Brand names like Zoom and Uber are modern, whereas luxury fashion designer names such as Gucci or Louis Vuitton are pre-eminent. A name like Slack, on the other hand, is a combination of modern and playful since what they do is directionally opposite to slacking.

Finally, before closing in on this step, you should also study your competition and target customers. The questions you should answer are:

●     How do I want to be seen by my potential customers

●     Where do I want to stand in comparison to the competition

While studying and evaluating your brand is the most time-consuming step in this process, it will ensure you're on the best track to finding the perfect business name.

2.  Brainstorm Good and Bad Business Names

Now, on to the fun and creative aspect — brainstorming a ton of business name ideas! This is your chance to get together with your team and think freely. Don’t be analytical at this point. You can think of bold, unique, quirky, or even bad names.

The only requirement is that everyone involved in the namestorm should have an idea of the brand proposition and persona charted out in Step 1.

You can also use this Squadhelp naming worksheet to kick start the brainstorming process. We go over the various categories under which you can explore names and the tools you can use, such as thesaurus, rhyming words, industry slang, etc.

Some other ways to get started are thinking of short and real words that stir up curiosity. Popular examples are Apple, Slack, and Uber, among others. You can also try bolder, in-your-face names such as The Honest Company, The Boring Company, and so on.

However, these are just a launchpad for you to begin brainstorming. Don’t be afraid to try unusual names or something entirely outside of these categories. Remember, no evaluating or judging your ideas at this stage. You can end the brainstorm with 200 odd names or less.

Shortlist the final ten names …

We then move on to shortlisting. Now is when you should evaluate your business name ideas against your brand tone and value proposition. If others are participating, ensure they have your branding brief with these details.

You can evaluate names by checking how it sounds and looks on different properties such as social media or on paper, how excited it gets you and your team, and if they fit with your brand personality. Get feedback on all of the brainstormed names you generated, analyze how catchy or memorable they are, and then plan to end this step with less than ten shortlisted names.

For example, if you’ve decided that you want to be seen as a pragmatic brand, keep emotionally charged names to a minimum. But feel free to play around within a category. Even if you want a practical and solution-driven name, you can still experiment with alternate spellings (example, Lyft) or short and spunky (example, Zoom).

3.  Validate for the Ultimate Test

You’re now super close to locking in your business name but first it must pass a series of checks for logistics and feedback. This final step can really be the tie-breaker between your top name choices.

●     Domain names: Few businesses can flourish without a website. You will need a domain name that matches your business name. In the perfect world, your domain name would be yourbusinessname.com, and it would be readily and cheaply available. But that rarely ever happens.

Check for the range of domain options available around your chosen name. You can look for alternate spellings (Lyft, Tumblr, Flickr), .co URLs, prefixing “the '' to your name, among other options. If this seems impossible, you can check out our business name creator.

●     Trademark: This isn’t the most exciting step but it can save you significant trouble in the future. Most existing words carry some level of a trademark, and there have been more than 6.7 million trademark applications. So, you should check if your business name is available legally. You can also deploy a legal consultant at this stage. Skipping this check may lead to cease and desist letters in the future.

●     Audience response: Run your name by as many friends, acquaintances, family members, strangers as possible. Ultimately, it’s they who will use the name more than you. So, write down feedback, use analytics, and decode which name sits well with your target audience

Remember, this could be considerably different than the name you had picked out but what your target audience thinks matters more. You can also do a linguistic research test at this time to pinpoint the name’s meanings in other languages or to check for any complex pronunciations.

One Last Step to Stand Out …

If you've followed the three steps outlined above, you are in a better position than many entrepreneurs to find the ultimate business name. Yet, if you are willing to go the extra mile, there’s one more highly underrated step that can differentiate your branding strategy from the crowd. It’s called brand imagination.

Your business name, in isolation, is only a piece of paper. Its potential depends on your ability to visualize your brand’s power. To do so, you should be able to help your customers see what the brand stands for and how it can change their lives for the better. Once this vision is clear in your mind, it will become the guidepost for everything in the branding process and help your brand truly stand out.

Final Words

A business name is undoubtedly one of the most crucial fragments of your company’s identity. It is only fair that you spend time and effort on this process. To proceed in a methodical and strategic way, you can follow a 3-step technique to land the ultimate brand name.

Start by deeply understanding your brand, its values, and tone. Decide and act according to how you want your customers to see you. As Amazon founder Jeff Bezos said, “your brand is what other people say about you when you're not in the room.”

Once you are very clear about this, start brainstorming judgment-free names for your business. You can try quirky, bold, modern, emotional or any other names. Then shortlist for the best names mapped against your branding brief, value proposition and brand tone. Don’t forget to check for available domain names, trademarks, and audience response.

Wrap up this process with a distinct vision for your brand. This imagination should have the potential to excite you and your audience. With this 3+1-step brand naming manual, what you should have with you is a stellar business name that resonates with your target customers while also appealing to your business goals.

Once you have your business name, consider including your Capex Financial and Tax advisors in your business registration and accounting process. For an in-depth discussion on this and Wealth management, click on this link —> https://capexcpa.com/contact

-The Capex CPA Team

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Business Succession: Planning for Family Business Succession

Working on a family business without a succession plan can cause confusion, conflict and jeopardize a company's ability to compete in the future. When a business is owned or managed by a family, the topic of succession raises a host of difficult and sensitive issues for everyone involved, including those who aren't employees. A series of papers have been published to address these challenges.

What to Consider When Planning for Business Succession?

Careful and thoughtful planning is essential for a successful business transition, and the goal of this brief document is to list a few of the most critical issues.

Build Company Familiarity

The most effective succession handoffs are frequently years in the making, providing the necessary time for staff to prepare for this move. Indeed, prior to hiring non-family staff, organizations should open discussion regarding the family's succession plans. According to research, job prospects have opposed working for family firms. By informing prospective employees about the company's aims and goals, you can avoid future dissatisfaction.

Current employees should also be introduced to possible successors early in the process. Familiarity fosters confidence and collaboration, as employees require time to adjust to a successor. Due to these contacts, the relationship capital between the successor and employees can play a critical role in establishing acceptance for family succession long before the handoff.

Set A Standard

Nonfamily employees frequently get the impression that family members are less accountable or responsible than they are. To mitigate the negative consequences of such perceptions, prospective successors should exhibit competence and serve as role models for accountability. Credentials such as schooling or outside experience might allay non-family employees that the successor is the product of nepotism.

Such demonstrations of leadership ability can help secure buy-in from worried nonfamily employees. Similarly, family businesses should demand a higher performance standard from prospective heirs. Increased hours and more difficult assignments throughout the transition can instill confidence in the successor's dedication among nonfamily personnel. This can assist in assuring staff that a family successor is the best candidate for the job.

Train Potential Successors

Many family businesses place the primary responsibility for training the next generation squarely on the shoulders of the family leader. This strategy overlooks a critical chance to garner buy-in from non-family employees. Experienced nonfamily personnel contributes significantly to the next generation's preparation, but incorporating nonfamily members in this process demonstrates that they are valued contributors to the firm's success. Such participatory cultures result in a more devoted and loyal staff.

Future successors who demonstrate humility and a desire to learn from more experienced personnel might strengthen nonfamily members' commitments by earning their confidence and respect.

Prepare Transition Plan

The most important thing above all is to prepare your transition plan. This transition plan will be your roadmap towards a successful business succession. It involves legal accounting and audit, assessing legal papers, setting of obligations, and signing contracts. Many family company executives strive to transmit the baton to the next generation successfully. Additionally, it might be a prudent commercial move if the proper processes are done. By conveying family succession goals, establishing strong relational relationships, and demonstrating the fitness of next-generation leaders, family businesses can gain buy-in from non-family staff.

Not only will this facilitate a smooth leadership transition, but it also has the potential to improve nonfamily identification with both the family and the business, resulting in a more productive and contented staff that will propel the business for years to come.

The time of transition can be difficult for many families, but it doesn't have to feel like a burden. Take advantage our services and book an in-depth consultation with one or more sessions that best suit your needs today! 

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Top 3 KPIs for Tracking Sales

In today's age, many businesses are not utilizing the knowledge their data provides in the way they could be.

With the ease of accessing digital analytics, there is always an opportunity being wasted. Knowing this now, you must be wondering how to access what you've been missing out on.

This article will learn the key features of five KPIs that are crucial to eCommerce and your business.

These KPIs are meant to produce actionable insight from your business's data to make way for impactful improvements to your company.

What Is A KPI?

A KPI, otherwise known as a key performance indicator- is a metric system that communicates how well a business or individual performs against its objective.

They are performance measurements that tell you where your business website might be and are meant to help identify any routes you must take to achieve your business goals.

Why Are Key Performance Indicators Important?

Without any KPIs, business owners are somewhat forced to resort to unfounded hypotheses, which can be detrimental to the overall success of their business. If something goes wrong, you won't know why or if it will happen again.

If you don't understand the outcomes of your business plan strategies, you cannot develop your company with efficiency.

This is where KPIs come in.

With them, you can achieve longer-term success with continuous action. The true power lies in the ability to interpret your data so that you can draw out any actionable insight.

How to Choose the Best eCommerce KPIs

There are many KPIs available for monitoring, but not all KPIs are beneficial for your type of business; hence when it comes to making a choice, you should focus on these factors:

Keeping it short:

Many agree that it's pointless to track tons of unnecessary KPIs that will be nothing but overwhelming to review. Choosing a smaller amount that provides actionable results for you and your team would be considered more beneficial in the long run.

Business Goals:

Choose your KPIs to impact your net income, as it will be supportive of your overall business strategy and annual performance.

KPIs That Reflect You:

KPIs defer in range, from eCommerce to business, so it's important to choose metrics that are most relevant to your business instead of what's trending in other companies.

Here is a few KPIs we recommend taking a moment to review so that you can see if they match what your business is looking for:

1. Conversion Rates

Conversion rates are the most crucial eCommerce KPI for a business owner. The conversion rate refers to the percent of how many visitors act on your company's website.

The good thing is, this action can be anything you want, such as signing up for your website's daily newsletter or when customers make a purchase. Overall, your conversion rate is meant to tell you how effective your created website is in encouraging past visitors to participate or take action.

2. Customer Retention Rate

The customer retention rate KPI is known for measuring the ability of your organization to retain long-term customers and generate any reoccurring revenue from pre-existing customers.

Research has shown this KPI can increase a modest 5% in customer retention, which overall can increase profits by 25%.

3. Net Profit

The net profit KPI is another useful KPI that is supposed to measure how effective the business is at generating profit for each dollar of income brought in. It is instrumental in making positive decisions.

KPIs can sometimes feel confusing, even overwhelming, and challenging to apply. This is why we have accountants readily available to help with all your business planning needs in one simple click, so book an appointment today, as any to all tracking will undoubtedly pay off in the end!

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The Benefits of Creating Wellness Breaks for Your Company

We all have benefited from our country's universal health care program. As it allowed for the needs of people to come first instead of economic gain, as we can somewhat see in other aspects of living.

Unfortunately, this program doesn't cover every medical service your employee needs to survive a health and stress-free career. The good part, though, about rising businesses is, as an employer, you have the ability to improve retention rates by adding costless wellness programs that are geared towards helping those who work for you to live a more engaging and fulfilling lifestyle.

With a customizable program at your fingertips, you can be the one to push towards healthier behaviors in your staff members, allowing for a more comfortable work environment as a whole.

You may also strengthen this new wellness plan with health insurance products to ensure each team member is taken care of in the longer term. Because there is so much to think about, let's go over why having a wellness program might be the right decision for your company, along with some ideas on how to begin the process of creating your own program.

The Importance of Taking A Break

It has been scientifically studied that taking a moment to relax or partaking in social breaks has been particularly beneficial to an individual's overall wellbeing in both a mental and physical sense.

Returning your functioning systems into a state of ease facilitates quick recovery. This just means, when you decide to take a break from your work, your body's energy levels are given a moment to recharge. Which said energy could then be used towards something more critical such as allowing you to participate in physical activities, work at your total capacity and allow for you to problem-solving with ease.

If you don't allow your brain or body the chance to rest, it can be detrimental to your overall health.

Decreasing your lack of focus, causing you to become physically ill and lessening your quality of life overall.

Having a wellness plan provides these benefits:

- Increase in overall employee morale

- Lower costs in health-related instances

- Improved productivity of your employees

- Reduced costs in disability and workers' compensation vectors

- Fewer on-the-job incident reports for employees

Now that we understand the benefit of producing a wellness program for your workforce, here are a few tips to help guide you towards implementing a solid health and wellness program for your employees.

1. Assess the needs of your workforce:

Take a moment to evaluate the environment of your business and the culture it creates; certain variables such as social networking and available support systems can make all the difference with the attitude of your staff and their overall wellbeing.

2. Establish how much you are willing to put into making this program a success:

Every dollar counts when you work in business, which is a very true statement. But if you are unwilling to put time or effort into creating a well-supported wellness plan, then success is futile, and all resources will have gone to waste.

3. Once running, evaluate the success of the program with your given staff:

Establishing a metric system to aid with determining the overall success of your wellness program is extremely important. Tracking employee participation rates and aligning with companies' goals is a great way to figure out what your staff needs so that employee morale stays up.

Still unsure how you'd like to proceed with creating your wellness plan? Talk with one of our accounting advisors today to see just how far you can go to make your work environment the best it can be.

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Are You a Freelancer? Check Out These Tax Tips

With job losses happening worldwide and unemployment numbers going down in the past few years, freelance work has spiked and turned into something that can replace full-time staff positions for many individuals.

Because it's such an exciting opportunity that many approve of and wish to partake in, we can only expect to see the market of freelancing skyrocket past any expectations in terms of economic stability.

But since this is new territory for the marketing world, there are some things regarding tax that many should learn to understand as it's forever changing in this stage of universal development.

If you are new to freelancing, doing your taxes will not look the same as it once did in previous years. So here are a few tax tips for freelancers to stay on top of the tax game:

Baby Steps

When you're new to this form of tax return, it's best to gather all your sources of income. As a freelancer, you need to be extremely organized in keeping track of all your 1099 forms, receipts, expenses, and client lists.

It's best to start out hoarding any information you can as you begin this journey and remember that freelancing isn't a hobby- it's you owning a business. Approach your accounting or bookkeeping work as you would at any other company you've worked for before.

If you feel you can't keep track and have a little extra cash to spend, hiring a third party might be a good option for keeping your taxes in line.

Keeping Track

The great news about being a freelancer is that you can still write off certain expenses.

This means you are able to expense business trips, vehicles, and any materials you may need to do your work. This is an important piece when filing your taxes, especially because many freelancers don't use it to their advantage. Other areas you might be able to deduct are marketing, health insurance, and contract work.

This is why organized is essential for all your files and receipts, as keeping track of your expenses and not overlooking viable ways to earn back money will make your freelancing career worth the extra work, especially when that check comes in the mail.

Putting Money Away

Many freelances believe the best thing to do when preparing for tax season is to put aside at least 25% of what you make to ensure you aren't strapped for money come the time to pay your taxes.

With this approach, self-employment taxes should be fully covered, preventing a large number of expenses from appearing at the end of the year.

Opening a separate savings account where it can be set up for direct and automated deposits from your main checking account is a good idea to think about as it will help to keep your tax savings on track.

Home Deductions

Since so many freelancers work from home, the home office deduction tax can be applied. The CRA allows freelancers to write off everything from utilities to rent for the portion of your home that you choose to use as your office space.

The only catch is that office space must be exclusively used for your self-employment work and nothing else.

After reading all these great tips, are you feeling like you want to be more organized this tax season? If so, then don't hesitate to take a look at CapexCPA, a digital accounting firm that is there to help with all your financial needs. Making tax season a stress-free experience for years to come.

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Having Trouble Collecting Payment? It Doesn’t Have to Be This Way!

Running a small business means that you constantly have a million things on your plate. Unfortunately, when one of these is dealing with a multitude of late payments, you may find yourself running around in a proverbial circle instead of moving in the forward trajectory you need for your business’s success. In this case, you have two choices: outsource collection or handle it on your own.

An Outside Party

When you don’t have time to handle financials yourself, you can outsource many of your operational duties to a full-service small business accounting agency. Capex CPA offers all of the services you need, including bookkeeping, financial statement generation, and even helping you write a business plan, which you can use to ensure that your business is operating according to your vision.

If you prefer someone full-time that can handle day-to-day transactions and, potentially, some administrative tasks, consider using an employee sourcing firm. Look for a recruiting agency that sorts through candidates and can vet your potential recruits based on the experience you need. Regardless of whether you choose direct hire or agency hire, make sure that you are upfront about their expected tasks, whether that’s tracking late payments, making daily outreach calls, or providing you with financial reports weekly or monthly.

Another, ideally last-resort, option is to begin pushing excessively late payments over to a collection agency. Keep in mind here, however, that a debt collection agency may take up to 50% of the money they collect. Experian also notes that this might hurt your customers' credit, which could damage your relationship with otherwise good customers, who may have fallen on hard times or simply missed the invoice.

DIY Collections

Should you choose to collect late payments on your own, it is those same relationships you want to keep intact. Even if you don’t necessarily mind losing one customer, don’t forget that they may wind up leaving a negative review, which can sway up to 86% of other consumers to hesitate to use your business. Here are a few tips on how to keep payments on track while also building and maintaining healthy professional relationships.

●     Reward early payments. Rewarding early payments is one of the best ways to ensure that you get your money. One way to do this is to offer a small percentage off of their total balance. Before you do this, calculate your profit margin and the amount it would cost you to collect a late payment. You can use these numbers to decide on a total discount.

●     Send a friendly reminder. People are busy, and, sometimes, late payments are simply a side-effect of being on the go. Send out a friendly reminder of payment due one week before the date, on the due date, and then at recurrent intervals once the payment is late. You can use a pre-scripted letter to ensure consistency. These emails should include a company name, contact information, a copy of their invoice, which should also show their balance and due dates. You can also make a special note of potential late fees and alternative payment methods, if applicable.

●     Pick up the phone (and text). A few years ago, one of the best ways to communicate with your customers was to simply pick up the phone and give them a call. Not today. According to PC Magazine, the vast majority of your customers prefer text and are more likely to read these instead of answering the call.

●     Offer payment plans. Finally, consider setting up your customers on installment payments. You can do this at the point of purchase, which ensures you at least get part of your money upfront. You can then require payment at intervals of your choice, which will have the added benefit to your customers by making a large purchase more affordable over time.

Collecting past due payment isn’t a fun job. But, someone has to do it. Whether you choose to outsource or DIY your collection endeavors, the above tips can help. Whatever you do, remember that attitude is everything, and you do not want to lose customers because of a potential payment misunderstanding.

Capex CPA Is one of Canada’s premier bookkeeping and accounting firms. For more information, dial 416.903.4040.

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Understanding Cash Flow

Running a business is hard work, and much of the time you are so focused on making ends meet, and starting to grow your business from the floor upwards, that it can take a huge up most of your time. It’s no wonder in this case that most small business owners feel quite cut off from those around them.

The thing is, if you understand what cash flow is and how to manage it, you can not only take back some of your time, but you can allow your business to grow and flourish without as much effort too.  

Of course, business success requires a little luck, but planning and understanding how everything works is a huge part of the story too. Managing your cash flow is one of those things you need to understand.

What Exactly is Cash Flow? 

Cash flow is the cash which moves into your business every month, and the money which flows out of it too. You will receive cash from sales and services, e.g. from your clients and customers, and then you will need to pay out too, for rent, supplies, salaries, tax, etc. You are in a good situation, called positive cash flow, when you have more money flowing into the business than flowing out.

Of course, on the other hand you have a negative cash flow if you have more money flowing out of your business than into it. During times when you are positive, it’s a good idea to put a little money aside, to cover you when negative times occur, which they will on occasion.

The breakeven point is when a business has the same amount of money coming in, as going out. It’s vital that you know your breakeven point, because it tells you the amount of sales or revenue you need to make in order to cover your expenses. This is the aim for survival, and anything over is a profit.

The Importance of Effective Bookkeeping

 Understand cash flow is about keeping records and ensuring that you know your breakeven point. Not only is effective and accurate bookkeeping vital for your tax and accounts, but it also keeps you ahead of the game, so you know where you are with your finances, and you can flag up any potential issues ahead of time. Being prepared is vital.

There are many ways to keep records, either the manual way, or online. An accountant will do it all for you, but this is going to cost you extra money, and that’s possibly cash you can’t afford at the very start of setting up your business. As your business grows, accountancy services are something you should invest in.  

Online bookkeeping methods and software packages will allow you to keep the accurate and appropriate records you need, while also storing the hard copies of documents which are vital or your taxes too.

By being aware of your cash flow and by keeping accurate records, you can ensure your business’ success, and growth in the future.

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

- The Capex Team

Why your business needs an online Accountant

Whether you run a small business or own a large corporation in Canada, managing business matters on your own is quite a hassle. You have meetings to attend, deadlines to meet, projects to complete, and various other operational duties.

There is no doubt that business owners have many responsibilities to take care of and running a business may sometimes become hectic for you, particularly when it’s about financial operations. Although you may certainly have a bookkeeper or accountant to oversee your books, you probably can’t access your financial records anytime anywhere. 

While the internet has transformed the ways industries do their businesses, technology has also brought abrupt changes within the business sector. With the advent of internet, accountants have begun to utilize different software to maintain their company’s business records.

However, most business people in Canada review their financial records either after 6 months or even after the fiscal year end. They generally just handover the necessary files to their accountant who uses the information for tax filing purposes. This is how most businesses in Canada carry out financial affairs.

It doesn’t have to be this way; reviewing your accounting books often and evaluating the data to design strategies can take your business to remarkable heights. Several cloud-based accounting solutions not only enhance efficiency of your business but also let you access all your business data anywhere at any time.

Increase your Business Efficiency

Unlike typical accounting software, cloud-based accounting software can save your company a lot of money and time. That means you no longer have to go all the way long to your server or computer’s desktop to review your financial records.

An online accountant or cloud-based accounting software can let you maintain your data back-ups, bookkeeping records, and other essential financial data.

Most importantly, having remote access to your financial record 24/7 through the cloud ensures the ability to make well-informed decisions at the right time. However, with typical accounting software, you barely get the chance to evaluate your business data and make decisions based on it.

In addition, you will have access to real-time information with an online accountant; you can make invoices, prepare periodical financial reports, and do much more. Along with increased efficiency and enhanced collaboration, online accountants with software, like Quickbooks Online, Wave Apps, Freshbooks, and Xero, can help make your business stand out in the small business world.

Enhanced Engagement with Online Accountant

When your accountant is the one who manages all financial books and you just view records once or twice a year, you may hardly pay attention to taxes and other financial figures. Since accounting is an imperative part of business, you really have to stay up-to-date about the current financial matters of your company.  Of course, there are myriads of things linked to your financial books.

For instance, if you keep checking your accounting book records with an online accountant, you’re likely to know whether your revenues are monthly basis or your business earns profits periodically. Similarly, you’ll get to know your gross margins and can set your goals accordingly. Furthermore, you can keep an eye on your expenses and your ROI. In addition, you’ll know that how much finance you’re investing for business promotion and whether you’re receiving desired results.

It’s important to mention here that businesses are dynamic; you probably have navigated through vicissitudes in your business journey. So, remember that an online accountant coupled with cloud-based accounting system can assist you effectively.

Geographical Barriers

These days, many business men prefer to have meetings virtually; with an online accountant and cloud-based accounting software you can share the details of your financial records with your delegates or partnering companies. This not only enhances collaboration with your team, but also provides you with ultimate solutions.

Furthermore, you can let an online accountant use your financial information through cloud system so that they can provide you with effective strategies.

Final Thoughts   

Like other businesses, you might have been struggling to achieve your goals and objectives promptly and effectively. However, make sure to integrate a cloud-based accountant into your business to help it grow and stand out in the corporate world.

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

- The Capex Team

5 Most Important Business Tips for Ultimate Growth and Success!

As Accountants we get to see a lot of small business leaders and small business bosses. The businesses that seem to thrive are the ones with the leaders. Here’s our compilation on the 5 most important business tips.

Running a successful business is not an easy job. It demands passion, time, attention, and most importantly planning. There might have been thousands of books written by authors about how you can become successful in business, and a few thousand about achieving success in life. #AudibleLife

You can find many articles, blogs, eBooks, and other content related to the subject, as content of this type is produced on a regular basis. Taking your business to the top is the ultimate goal of every businessperson, but not many live up to the potential.

So how can you become successful in today’s competitive business world? To begin with, it takes a lot of factors to transform a business into a success. You need to understand the market, study demographics, analyze what the consumers are demanding, and how efficiently you can price your products. And that’s just a start.

If your business is struggling in a specific area, now is the time to work and improve. Let us dive into some of the most useful business tips that you can apply today:

1. Stay Disciplined & Focused

Discipline and focus are two most important aspects for success in just about any field; however, working on distraction has become a challenging task for a majority of the disciplined people. This is something that is going to stay for a long time.

These days, in business, you need to understand the art of shutting yourself off when it matters. Though this process is by no means easy, if you are undisciplined and distracted from improving your business, you cannot reach to the top. And if you are unable to achieve these things, someone else will.

If it was easy someone else would be doing it.

2. Grow As a Leader

Once you tackle your fears and are ready to take the step of starting a business, you have already begun your journey to becoming a leader. Your entire success depends on the factor of how much you are planning to help others find their own. Businesses thrive when people work together, so if you are starting a new business, make sure that you are hiring like-minded people and work together as a team. That way, you will not only grow as a businessman but also as a leader.

A leader is not just about managing a successful business; it’s more than that. You should know the tricks to motivate others to join your team. Always believe in what you say or hear, be confident, and provide money for the services you are offering.

3. Get Competitive

Unless your business has an exclusive monopoly, you will experience a lot of competition in the market. Competition is everything, and the key to successful business growth is all about selling. You should know how to sell to excel and stay competitive in the market.

When running a business and competing with other players in the market, it’s all about having a unique selling proposition or USP. This is the factor that makes you better than your competitors. It can be anything related to your business; your product, price, location, but most importantly you.

4. Calculate Your Success

Everybody has a different concept for success. Some define success with passion, some with increasing wealth, etc. The best strategy to calculate success depends on a few key factors:

•      You should love your job
•      You should regularly achieve your target because It creates an impression that you are aware of your goals
•      You should like your product or service and reach out to the customers efficiently.

If you calculate your success by working on these three tips, you will not just become a successful businessman, but your product will also reach out to a broader group of people.

5. Know How to Get Things Done

Successful people in business understand the skills to motivate others and work towards a common goal. They have a unique personality with strong communication skills. They know how to talk and get things done. People that run a successful business are troubleshooters and problem solvers. They know the outcomes, the risks and obstacles involved in running a competitive business, and solutions to overcome problems.

Conclusion

All the tips mentioned above are successful for running a competitive business. You need to push yourself to the limits and remember it will all be worth it. Remember, everyone can start a business and become a entrepreneur, but not everyone can become a successful entrepreneur. There is a big difference the times are changing and new thought methodologies are now required to sustain your competitive advantage. You can’t expect to do business your grand-father’s way in hope’s of leaving a legacy for your grand-kids. Change is Constant let a Professional accountant help you navigate it!

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

- The Capex Team

How Technology Has Modified an Accounting Firm

How Technology Has Modified an Accounting Firm

In recent times, technology has become an important element of the accounting and bookkeeping industry. Transformation in technology has changed the accounting profession, and it has certainly had a positive impact on many accounting firms.

The first remarkable change in accounting technology took place many years ago when firms started using software for accounting. Thus, the profession started progressing at considerable levels with significant improvements in modern technology.

These days, organizations use software for crunching complex numbers, analyzing data, and monitoring economic activity.

Effect of Technology in the Accounting Industry

Gone are the days when accountants used paper, pens, and calculators to verify ledgers and balance sheets. These days, advances in technology have changed the mindset of outdated financial processes, with remote control sessions and basic desktop software being a norm. This rapid change in technology has occurred to such extent that it has left our offices barren of a single file cabinet. #Hubdoc #ReceiptBank

Specialized Accounting Tools And Software

With a majority of word processing tools and software available in the market, technology has improved the accounting field and reduced margins of error that you would otherwise need to contend with. Even though some accounting firms still use the traditional Microsoft Excel for running ledgers and data entry, most organizations today purchase specialized software for accurate financial reports, simplified business ledgers, and data entry

This benefits the businesses and reduces the margin of error in financially secured firms that are better equipped to stay afloat.

Cloud-Based Systems

A noteworthy change in both bookkeeping and accounting practices is happening due to the introduction of cloud-based systems and software.

Cloud-based technologies allow small businesses and organizations to enter and edit financial information, and make decisions accurately. This technology is convenient for business owners and provides more access to accountants.

 A majority of accounting companies today are using cloud-based systems to streamline their processes. These systems provide firms with greater access to their data from anywhere. You just have to log in.

Mobile Accounting

With advances in technology, the usage of mobile phones has become more prevalent. There are now a number of mobile applications dedicated to accounting. These apps allow you to add receipts, send invoices, and prepare expense claims with just a few swipes on the screen.

These apps improve the connectivity between the clients and the accountants and give you access to your entire data, no matter where you are.

Demand For Strategic Training

By employing specialized software programs in the accounting firm, the need for basic accounting training has decreased. An accountant with access to a computer and accounting software can efficiently work on forecast modelling, statistical analysis and tax preparation services today without any particular training.

Accountants are no longer portrayed as number crunchers like they used to in the past, but instead, they are now considered as professionals working alongside strategic teams. These days, a majority of accountants are creating new processes, giving advice and executing future forecasts that a computer cannot do.

Effective Client Transactions

Digitizing operations and data is not just important for your organization but also for your clients. By digitizing your operations, there will no longer be a demand for on-site consultations, and both your clients and accountants can access the data remotely.

They will also be able to monitor, edit, and comment on their statements, discuss and plan out the operations through video conferencing.

Moreover, applications with customer functionality have authorized non-accounting professionals to understand what is going on with their finances more easily.

Accountants With IT Skills

As an accountant in today’s world, it is important to stay updated with the most current advances in technology to enhance your productivity.

There is a wide range of skills that an accountant should learn before applying at any reputable organization. Besides learning the common accounting practices, and communications, accountants should know how to apply these processes with IT programs.

While there are many professionals out there not capable of using modern Enterprise Resource Planning systems, all the professionals in the field should know how to integrate accounting with IT.

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

Best way to buy an investment property?

Best way to buy a investment property?

After spending many sleepless nights and countless hours into a business the small business entrepreneur would ideally have extra cash saved in the corporation. This cash sitting in the corporate bank account is usually better optimized by investing than keeping in the bank. While meeting your financial advisor the business owner might invest in securities such as bonds, mutual funds and other securities. Others might opt to invest in buying real estate. This blog is for those individuals looking to buy an investment property in the most tax efficient way. Real estate deals add many layers of complexity as different decisions result in adverse tax and legal situations.

Personally Purchasing investment property:
If you purchase a investment property personally that means your name goes on the land deed. You will have to keep track of all the profit and loss that results from this rental property and report it on schedule 776 on your personal T1 tax return. This rental income gets included to calculate your ‘taxable income’ and the respective taxes will need to be submitted to the CRA. Please note that the initial funds used to purchase the investment property are funds that have been already taxed on the personal level.

Corporation purchasing investment property :
If you purchase the property through your corporation it’s the company’s name that goes on the land deed. Any rental income is added to the corporation tax return and the respective taxes are reported on the T2 tax return. Please note rental income is considered passive income and does not qualify for the CCPC small business deduction hence this is taxed at a higher rate than the 14% corporate tax rate for active income.

Bank Mortgages:
Purchasing a property under your personal name generally allows for more mortgage options in the market. Assuming you have a good credit score and have the necessary down payment and the required salary to meet the stress test you can walk on in any of the A list banks and walk out with a mortgage note payable.

A corporation that has not met the 2 years in business will have a tough time getting a mortgage. This is because the banks view the recently incorporated business to be risky and the banks usually avoid lending to corporations for investment properties.

Tax Decisions:
The tax decision really comes down to pre tax dollars vs after tax dollars. Generally keeping the money in the corporation is a better strategy than to take the money out to invest. If your holding or operating company has loads of cash and lets assume the company earns $500k net profit a year and pays the corporate tax rate of 14% [2018 rates] this would leave after corporate tax income in total cash of $430k. Since this money is left in the corporation and not paid out to shareholders this money is considered to be pre-tax money.

If you want to purchase the property personally you would have to take the $430k out by way of salary and dividend and the personal tax bill can go as high as 54% so your tax bill would be $232k in this case. The total personal taxes are so high that it would make a lot of sense to use the corporation to invest pre-tax dollars ($430k) rather than the after tax dollars personally of $232k.

Personal residence exemption:
Generally, when buying your own home it makes sense to buy it personally. This is because of the Personal residence exemption which states that the gain on any profit from the sale of the real estate property is free of any capital gains tax. This tax exemption is in place to allow Canadians to utilize their mobility rights.

If you buy a property for the purposes of renting it out and the property has not been declared as a primary residence than that property will be subject to the capital gains tax on the sale of the property. Although such a rental property will be taxed for capital gains the tax doesn’t kick in until the property is sold.

Corporations in Canada do not get the primary principal residence exemption so if you are planning on buying a second property perhaps a cottage? It might be better to buy it personally.

Legal
A discussion with your lawyer before buying any real estate property is very important. Apart from the tax decisions there are some legal decisions that also need to be made. If a tenant sues they are suing the extra funds in the corporation as well. If a corporation buys a rental property and adds shareholders or plans to add shareholders, then the initial rental property is also being sold part of that deal. You are essentially selling a portion of the rental property to the new shareholders.

If you are planning on buying the property personally then you can lower your liability by moving the deed name to your spouse with a hopefully lower liability than you. This will help to mitigate any potential law suits.

What’s my best option?
As you can gauge from the above there isn’t a cookie cut solution. The tax/legal solution depends on your income, corporate structure and future vision. Please reach out to your lawyer/accountant to consult on the best investment solution for you.

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

How do I take out $800,000+ from the sale of a business tax free?

The question on tax free income is always a recurring question we get in everyday practice. This is one of the most exciting Tax techniques used to provide a shareholder of a corporation access to Personal tax free money. The key here is personal tax savings! So let’s get into this.

Let’s say that John Smith has ran his small business with average revenues of $480,000 a year and he pays himself $100,000 a year. He’s now thinking of exiting the business to retire and enjoy other things in his life. There’s a buyer named Andrew in the market who is willing to pay $1,000,000 for John’s corporation. If John sells the shares of his small corporation to Andrew he will have been deemed to have a Capital Gain on the sale of his shares. Assuming John built the company from scratch and the adjusted cost base was $0 the total gain would be the $1,000,000.

Capital gain is basically the government’s way of taxing income which comes from the sale of assets or shares. In this case John has sold his shares and he will be taxed under the Capital gain tax. The great thing about the Capital gain tax is that it’s 50% tax free so that means that of the $1,000,000 only $500,000 of that cash will be taxable for the capital gain tax and let’s assume that $200,000 will be the capital gain tax amount. Once this tax has been paid by the corporation the rest of the money sitting in the corporation would be $800,000.

Maneuvering the left over money in the corporation to John is a tricky task. One of the best ways to take the money out tax free would be to use the Capital Dividend Account or referred to as the CDA account. This account allows a shareholder to not be double taxed when the funds are transferred to the shareholder personally.

Your accountant will calculate the CDA account for you which is a quite involved exercise. Next this calculation will be confirmed by the CRA for the CDA account. This part particularly takes a long time as the CRA are very slow at confirming balances which is usually 6-8 months time. Once the CRA confirms the total CDA balance, your Accountant would file a form referred to as the T2054 declaring the dividend being paid to be a capital dividend. This step is critical to get right as the penalties are punitive.

Penalties for getting the above wrong is highly punitive in nature. If you over reach on the CDA the CRA will assess 60% of the excessive amount declared to be the penalty. So if you miscalculated by $100,000 than the total penalty will be $60,000. As you can imagine trying this at home is not recommended and you should always reach out to your Trusted Tax advisor to discuss this strategy.

The exciting piece of this entire strategy is that John gets to take the $800,000 of money tax free to his personal bank account by only having to pay the $200,000 in corporate taxes he completely bypasses the personal tax. Now, John can invest his $800,000 in different securities that give him a return of 8 to 10% resulting in a net taxable income of $80,000 to $100,000 which matches the initial money he was taking out of the business in the first place minus all the work involved. 

Remember the goal isn’t how much money you make in your business it’s how much you keep from the tax man. Legally of course!

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

Financial Spring Cleaning: How to Get Control Over Your Money

For many Canadians, financial planning remains a stressful and elusive task. It’s not just about creating a budget and sticking to it; it’s also a matter of seeing into the future, in a way, to ensure you and your family are on the right track. That can be difficult to do when there’s never enough money to add to a savings account or when unexpected expenses drain what you have.

Fortunately, there are several simple things you can do to give your finances an overhaul. It’s important to keep up with spending for the entire family, not just for the sake of your checkbook, but for your own mental health. Money is a top cause of stress for Canadians and it doesn’t seem to matter how good or bad the economy is, because there are always bills to pay. That stress can leave you feeling depressed, anxious, or unable to function at the level you need to, and it can even lead to substance abuse in some cases. For more info about the link between mental health and addiction, read on here.

Keep reading for some tips on how to get control over your finances this year.

Look at your spending
The first step in taking control over your finances is to look at your spending carefully. Sit down with your spouse or partner and go over your bank statements for the past two months. Look at where your money goes, and don’t forget to factor in cash transactions. Outside of utility bills, rent or mortgage, and necessities like gasoline and groceries, what did you spend the most on? Remember that sometimes seasonal factors are at play too, such as having to buy school clothes for the kids.

Cut back
If you see a chance to cut back on your monthly spending, talk it over with your family members. Many families choose to get rid of cable in favor of a less expensive streaming service, or to get rid of a landline phone since they already have cell phones. You don’t have to be brutal with your cuts; if it’s something you enjoy, think twice before getting rid of it or simply cut back. For instance, if you subscribe to a streaming video service and receive DVDs in the mail as well, consider using only one of those.

Set a budget
Creating a budget can be tricky, but it’s important to sit down with your family and talk about spending and how to save. Your household budget should begin with a look at your necessary spending. Once those numbers are added up, look at what’s left and lay out the best ways to use it. You might decide to allot a certain amount for clothing or to start saving for a vacation or a new car. Whatever you decide, make sure you communicate it to the entire family so that everyone is on the same page. Doing this will help give you peace of mind as far as knowing what to expect each week and will help relieve some stress at the same time.

Look at your credit card use
Many of us rely on credit cards to get through the month, but if you can’t afford to pay more than the minimum balance, you’re only digging yourself deeper into debt every time you use it. Come up with a solid plan on paying off your cards and resolve to resist the temptation to open up new accounts when they are offered at retail stores.

Getting your finances in order is rarely an easy thing to do, but it’s absolutely necessary if you feel your family is overspending. Come up with a plan before making any big decisions, and talk to your loved ones about the best ways to stay on the right track.

-Article by Larry

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

How to Protect Yourself & Your Wallet As You Venture Out On Your Own

Whether you’re just submitting applications to college or finally stepping out into the world, gaining personal and financial responsibility is vital if you want success in life. Unfortunately, many young people are instead finding themselves burdened by finances due to irresponsible use of earnings. However, there are several ways you can secure your future by saving, implementing smart money management techniques and protecting yourself from life’s uncertainties. 

Acquire Self-Control
When it comes to your money, a little self-control goes a long way. Instant gratification seems fun but cumulatively can cause trouble for you in the future. Not taking care of your bills and other necessities can also cause great arrears which can lower your credit and put you at high risk for increased debt. 

According to Creditcards.com, consumers are more willing to spend a considerable amount of money when using a credit card over handing over cash. By doing so, you aren’t actually saving any money at all. In fact, you can get into serious debt if you aren’t paying back those costs on time. When that debt accrues and isn’t paid back, this can put you at risk for garnished wages, bill collectors going after you, and even being sued. 

 Instead, stick to a budget, like the 50-20-30 rule which allows you to see exactly how and where your budget should be allocated. This rule builds a customized financial plan on a unique level since we all have various wants and needs with differentiating incomes.

Shake Off Leeches
Just because you need to save doesn’t mean you can’t go out and have fun. However, it’s important to become aware of money leeches, entities or people that drain your financial resources. A money leech ties itself to you and tries to stick around, but it’s up to you to no longer feed it. 

As a young adult, you will come face-to-face with various forms of temptations; some not so harmful, while others may be dangerous. However, not giving bad habits the time of day will help you to gain control of your own life. According to the National Institute on Drug Abuse, substance and alcohol abuse has risen for college-age students, due to peer pressure. An addiction or unhealthy habit can send you into a downward spiral with financial hardships, so become aware of how such practices can also send you into debt. 

Gaining the confidence to just say no to money leeches will give you the confidence to say no to other activities or things that don’t serve you. Save yourself headache (and money) in the long run by learning what constitutes a necessity versus an option.  

Financial Planning
With the right tools, anyone is capable of setting themselves up for a great future, financially. However, not everyone learns the proper way to manage money. Unfortunately, schools don’t teach financial management and money-saving skills are rarely taught at home, which is why so many young people today are accruing more debt than they can handle. However, it’s never too late to learn how to become a financially independent adult, which can keep you from living paycheck-to-paycheck and also puts you in the position to help others.

 One way of acquiring knowledge about money management is to utilize devices, apps and websites which not only teaches you to budget wisely, but helps you to see where your money is going and has long-lasting effects on how you view money and ways it’s distributed. You may even find speaking with a financial counselor to be useful. Financial counselors are there to help you avoid investment and tax mistakes as well as provide you with a deeper knowledge of how finances work. However, finding one that has your best interest in mind is of the utmost importance. 

While money is a valuable asset, your life is even more precious. Secure it by making the right decisions and creating a viable financial plan that will help you go far beyond your wildest dreams.

Article written by - Larry 

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