How Hiring An Accountant Can Save Your Business Money

It isn't uncommon for small business owners to believe that when they handle their financials, they end up saving money. It’s always great to have an understanding of accounting processes, your tax obligations, and cash flow management. However, there are many benefits to hiring an accountant for these tasks.

When you entrust this job to an expert accountant, you can focus on various other aspects of your business that need your attention. We at CapexCPA, offer excellent accountant services, and can cater to your specific requirements. Our team of experts will work with you,  offer sound financial advice and make sure that all your tax obligations are in place.

Hire an Accountant and Save Money

Look at how you can save your business money by hiring an accountant:

·         Bookkeeping- An accountant can systemize your bookkeeping & sort your books. Maintaining proper account records is one of the simplest ways to get visibility of where your money is going.  This helps you cut costs on a daily, weekly, and monthly basis.  When you keep your account up to date, it enables you to determine which business investment will bring in the most returns.  You can strategize your spend accordingly.

·         Financial Advice- The accountant would be able to spot what is going wrong and what is working perfectly. They will provide you reliable advice when it comes to operating expenses and managing these well, which amounts to savings for you.

·         Avoid Errors- When you hire a professional accountant for these jobs, it helps reduce the chances of costly errors. These are very commonplace when small business owners attempt to track their expenses manually.

·         Assistance With Tax Filing- The accountant will make sure that all of your tax forms are filled in correctly and submitted on time.  It doesn't take long for tax penalties for small businesses to pile up if you neglect to file your taxes on time. Businesses that are already struggling to stay afloat might not be able to afford paying tax fines.  This means they may have to down their shutters and bear considerable losses. And accounts expert will make sure that there are no errors and omissions in your tax filings.

·         Plan New Business Strategies- Accountants have excellent business knowledge. They will help you make better-informed decisions and can help you with revising or drafting your business plans. They will also provide critical insights related to profitability assessments.  This goes a long way in helping you move your business forward in the right direction.  You end up wasting less money and time experimenting with different strategies that have less of a chance of success.

When you have an expert accountant in your corner, monitoring your progress and setting new targets, they can become an invaluable asset for your small business.  Not only will you end up saving a significant amount of money but can also enjoy higher profitability. If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

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

- The Capex Team

The True Cost of COVID-19 Payment Deferrals

Many things are in flux because of the COVID-19 outbreak that resulted in unemployment for a significant number of people across the country.  Some of the relief measures by financial institutions include:

• Deferred mortgage payments

• Credit card interest rate reductions

• Lower minimum payments on credit card balances

• Lines of credit adjustments

Mortgage Payments

The programs were launched in mid April with the option of skipping a payment.  At this point there are no deadlines and the deferrals are available indefinitely.  The customer needs to contact their bank or credit union for more information.

It is important to remember that this does not mean the payment is erased, but merely put off to a later date.  It is also necessary to remember that this is not a government program so the lenders are allowed to establish their own procedures and requirements.  So, applications may vary from one financial institution to another, as well as the terms of repayment.  Banks do not like to lose money, so you may expect that this deferral will come at a cost to the recipient.

Banks can require that those missed payments be resolved by either increasing the future payments so the repayment (amortization) schedule is not affected.  Or, they can just extend the term of the loan.  Deferring six months payments could mean around 5 additional payments to make up the difference.

While you are not making those payments, interest is still accumulating on the outstanding principal.  It will depend on how much you still owe on the loan, how long you defer the payments, and the term of the mortgage.

Credit Score

Since we are still in the early stages of this process, it is difficult to know whether these deferred payments will show up as late payments.  Since much of the information that is fed into the reporting system is automated, it would stand you in good stead to review your credit reports should you opt for a deferral program.  Catching errors early can save a lot of trouble in the long run. 

Considerations

As you are weighing your options, you may want to think about some other things:

• Total Debt – Prioritizing payments is difficult.  Cash flow can be increased and applied toward paying down credit cards, car payments, or just for ordinary living expenses.

• Other Bills – There are other issues like property taxes that may become due during this period.

• Savings – Are your savings sufficient to help you ride out the wave?

• Other Programs – It might be worth looking into other government-sponsored programs to see if they can offer you some relief.

Before coming to a decision, you probably want to sit down and analyze the options against the numbers.  Prepare a budget based on current income and a second one based on income when isolation restrictions ease up.  There are online calculators that help with providing the blanks that you can fill in.  

When you speak with the representatives at your financial institution, ask as many questions as necessary so that you thoroughly understand the implications.  If he or she simply replies with the same phrases, explain that you need them to use other words because you are confused. 

Credit counsellors and insolvency trustees may provide some insights.  Be sure you are confident in any decision you make.

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

- The Capex Team

Signs Your Accounting Software Is Holding You Back

Businesses need dependable software to keep their accounts in order. These programs allow companies to enter their expenses, revenue, handle invoices, payrolls, and perform other such essential tasks. Most business owners don't realize that choosing the wrong software can cause problems down the line. At CapexCPA, we encourage clients to take another look at their current accounting software to see whether it is helping their business. Here are some signs that indicate your accounting software is holding you back.

1. Excessive Manual Entry

Your accounts grow as your business grows. You have more numbers to churn, more information to enter, and more expenses to manage. Entering data manually isn't difficult if your business only has a handful of clients. However, if you have dozens of clients, accounting can become very tedious. If you're spending too much time manually entering data or copy-pasting information, it is time to consider a better accounting system.

2. Trouble With Compliance

Different industries have different compliance requirements. It is vital to ensure your accounts are maintained according to these requirements. Basic account systems make it more challenging to comply with established regulations, which can lead to errors or non-compliance issues. Advanced accounting systems and professional accountants ensure your system and data comply with industry regulations.

3. Problems With Security

Many accounting systems aren’t as secure as they should be, which can be risky for businesses. You won’t want your company’s and customers’ data to fall into the wrong hands. Most on-premise IT systems are vulnerable to attacks from hackers, and companies need to invest hundreds, if not thousands of dollars into security systems to protect their data. Modern cloud-based accounting systems from reliable SaaS providers are much more secure. They're also easier to back up and keep safe in the event of a disaster to prevent data loss.

4. Lack of Insight

Your business accounts are an essential source of information. They don’t just record your finances, but also provide an insight into your company’s financial health, future earnings and expenses, and projections. You can analyze the data to identify trends, determine which products and services are bringing in revenue, etc. Sophisticated accounting systems provide detailed reports that can help you understand this information and utilize it effectively.

5. Doesn’t Track Changes

If your accounting system doesn’t have controlled access, your accounts will be a mess, which can get you into legal trouble. Advanced accounting software systems allow you to control access and ensure all the changes are recorded. This will allow you to control the information and ensure everything in order. You can reverse changes and make sure no one arbitrarily meddles with the accounts.

If your account system doesn’t perform up to expectations, it will harm your business. Consider upgrading your platform to something that is better suited for your business.

If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

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

- The Capex Team

What Can I Claim on Expenses When I Work from Home?

Many employers have required their staff to work from home during the COVID-19 isolation.  Looking toward next year’s tax return there will be questions about what can, cannot, and should be deducted as home office expenses.  It may seem a bit premature, but it is important to capture as much information now to be prepared for next spring rather than trying to reconstruct at that time.

Right now under the current Tax Act , employees who are not reimbursed by their employer for company-related expenses but are required to work from home may deduct those expenses under Form T2200.

Just remember that we are talking about next year and we don’t really know what the CRA will allow or require.  However, under the current laws, here is what is permitted: 

Home Office

There are some requirements:

• The employee is contractually required to work from home

• The employer certifies this on a T2200

• The space is exclusively used for work or to meet customers over 50% of the time 

Under the current situation, it will probably need clarification about virtual meetings and conference calls.  It is also under consideration about how or whether a signed T2200 will be necessary or if another approach will be approved.

Expenses

Normally deductible expenses include:

• Utility costs

• Maintenance 

Not deductible are:

• Capital expenses or depreciation

  • Equipment

  • Furniture

• Mortgage interest

• Property taxes

• Home insurance 

The deductibles are subject to the restrictions the CRA has established, like calculating the percentage of space you are using and applying that portion of the allowable expense to your tax return.

Technology

With forced isolation and social distancing, employers treated technology needs differently.

• Provided an allowance to cover

  • Upgrades

  • Webcams

  • Better headsets

  • Etc.

• Reimbursed the employee for those same expenses

Normally the CRA would consider the allowances or reimbursements as taxable benefits.  Right now they are saying that they will allow up to $500 as non-taxable as long as the employee can offer receipts.

Additional Considerations

Many of the CRA’s announcements are made from the perspective of a short-term (only a few months) required quarantine and workplace restrictions.  If the mandated limited exposure continues for a greater portion of the year, it is expected that other decisions will impact next year’s tax returns.

If you have not already done so, talk with your employer about filing a T2200 to certify your required work from home.

You definitely will not be allowed to claim a deduction if your employer is already claiming those expenses or providing you an allowance.  Double check to be sure how the boss is viewing the situation. 

Take the time now to gather receipts and documentation about the specific purchases and expenses related to your home work during the Coronavirus pandemic.  Then keep up with the paperwork as time progresses.  It could be beneficial next year.  When the situation settles down and we have a “new normal,” you may find that both you and your employer benefit from your working from home. 

If you have any questions or concerns, contact an accountant who should be able to give you good advice.

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

- The Capex Team

What You Need to Know about This Year's Tax-Filing Extension

The Canadian government recently announced that it has initiated relief measures to help with the financial and other distresses during the Coronavirus (COVID-19) impact.  These measures are geared toward both businesses and individuals. 

Individuals – The April 30, 2020 deadline to file 2019 personal tax returns has been extended to June 1, 2020.  Also, the deadline for payment, including instalments, is now due August 31, 2020 without an accumulation of interest or penalties for this extended time. 

Corporations – The filing date for corporate returns remains unchanged.  However, the payment date has been extended to August 31, 2020 with no interest or penalties during that time.

Partnerships – The new due date for tax returns is May 1, 2020.

Trusts – For trusts with a tax year end of December 31, the 2019 tax return filing date is extended to May 1, 2020.  The deadline for payment is now August 31, 2020.

Charities – The filing deadline is now December 31, 2020.

Non Residents – The NR4 Statement is deferred to May 1, 2020.

Audits – The CRA announced that it is temporarily suspending any interaction with taxpayers and their representatives.  Further, they will not be contacting any small or medium businesses for new audits until approximately June.  Watch for updates. 

Those not Listed – If your situation is not among the above, generally you can expect the deadline to have been extended to June 1, 2020.  To be sure check with your tax advisor.

Exceptions – There have been no reported extensions for payroll withholdings.  Also there is no exclusion for Scientific Research and Experimental Development claims.  At this time there have been no announcements regarding GST/HST returns.  You should assume these are due as originally payable. 

If the payments are not made by the extended deadline, the CRA will review any relief measures on a case by case basis.  

Already Filed? – If you have already filed your returns and are anxiously awaiting a refund, you should be aware that there are significant delays in processing any paper returns.  If you have not already filed, you should consider electronic filing.  This will speed up any refund.  Also opting for a direct deposit will mean a payment even sooner.

If you already filed a 2019 paper return but know that it has not been processed, you can re-file using certified tax software.  However, there are some returns that can only be handled through paper.

Provincial Returns – There are also some specific filing and payments dates that are specific to the province.  You should check for precise information regarding any provincial tax returns and payments based on the area affected. 

At this point it seems as though about 45% of the Canadians are taking advantage of the extended deadlines, as reported by H&R Block Canada.  If you have any questions, don’t hesitate to contact your tax or financial advisor.

If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

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

- The Capex Team

What's New With Cloud Accounting In 2020?

Cloud accounting has taken the business world by storm. Many firms, big and small, use SaaS accounting programs to manage all of their accounts properly and maintain visibility on their finances. At CapexCPA, we encourage businesses in all industries to adopt this technology and streamline their accounting process. Cloud computing has been growing at a rapid pace since it was first introduced. SaaS platforms have become more intuitive and sophisticated. Here are some new trends in cloud accounting in 2019:

1. Increasing Dependency on Mobile

Accounting software programs are primarily designed for desktop platforms. Most accountants and business owners don't want to navigate through endless rows of numbers on a small mobile phone screen. Despite this, mobile use has grown over the years, and many accounting firms have started to offer accounting apps. These apps can be used to send invoices, receive payments on the go, and even browse through information from any location in the world.

Mobile apps are convenient when you need to access your accounts immediately and make small changes. There's no need to start a computer, open a program, and type in the information.

2. Automation

Most industry insiders know that the accounting industry is changing. Sophisticated software programs can handle daily data entry and repetitive tasks. Human accountants focus their mind and creativity on tasks that require a more intuitive touch, like getting tax benefits, optimizing cash flow, and cutting costs.

Automation is the most significant trend in the industry. It allows businesses to cut down on time, direct their human resources to more productive tasks, and reduce the margin for error. Many business owners think automation is only for big companies with large amounts of data, but even small establishments can benefit from it.

3. Outsourcing

Small to mid-sized businesses have limited revenue and budget. They can’t afford to set up an accountancy department or hire a full-time professional accountant for their company. That’s why outsourcing has become so popular in recent years. You can hire a certified chartered accountant and enjoy the full benefits of their expertise without burning a hole in your pocket.

Modern accountancy firms provide many options to their clients. You can hire a professional accountant, use their cloud accountancy platform, or do both. This makes it easier for companies on a small budget to get professional help for their business accounts.

4. Data Analytics

Your accounts hold a lot of information, and this information can help you take your business to the next level. Modern cloud-based accounting programs don’t just keep your accounts in order, but also analyze the information. You can get detailed reports on expenses, revenue, inventory, payrolls, trends, etc. This information can be used to improve and optimize your business practices. If you plan well, you can get more revenue while spending less money.

Data analytics can also help professional accountants provide more nuanced advice on things like cash flow, taxation, reducing the tax burden, etc.

If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

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

- The Capex Team

When Should You Hire a CPA?

CPA or Certified Public Accountants are trained professionals who can handle business accounts, offer advice on taxation, and help you make sound business decisions. Almost every business can benefit from an experienced and reliable CPA. At CapexCPA, we can help companies reduce their tax burden, optimize cash flow, and maintain their books according to local compliance requirements. You might not need a CPA for everyday bookkeeping, but you will need them for more sophisticated activities.

1. Before Starting a Business

Your business is more likely to succeed if it has a robust financial system in place. Most entrepreneurs skip hiring a CPA because they're already on a tight budget. However, a CPA can help you save money and avoid cash flow issues down the line. A good system can help you avoid mistakes, ensure clients are compelled to pay on time, and even draw more customers. Using a CPA's services will set you up for success from the very beginning. It will also help you avoid expensive mistakes that might damage your reputation and chances of success.

2. Changes in Laws

You need a CPA to help you if there are any significant changes in your local taxation laws. CPAs always take the time to study new laws that influence their field. They will help develop systems that help clients implement the new regulations quickly. If you have a good CPA, you can avoid compliance issues, fines, and make sure your business keeps running smoothly despite the change.

3. Protecting Your Interest

If you get a government audit notice or if they request more information about your accounts, you can benefit from having a CPA at your side. They will look into your accounts, provide the data, and make sure everything is for the audit. They will also help you get legal protection to protect your interests.

4. During Tax Period

You need to hire a CPA when it is time to file taxes. They will make sure all your accounts are in order, determine if you’re eligible for any exemptions or benefits, and ensure there are no errors. Mistakes can lead to audits and legal repercussions, especially if you end up paying less tax than you are required to pay by law. A CPA professional will prepare documents, provide tax planning advice, and file returns on your behalf.

5. Changes in Business Structure

You will need a CPA's assistance if you plan to change your company's structure. For example, if you want to break into a new industry, expand your local business and sell products to customers all over the counter, you need to make sure your company's financial system is ready to handle it.

A CPA will also help you get through major changes at the company's executive levels. For example, if a partner leaves, sells their portion, or dies, a CPA will ensure the assets and shares are handled properly.

If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

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

- The Capex Team

The Dangers of Sticking With Manual Accounting

Manual accounting has been tried and trusted for hundreds of years but in this day and age, with better technology, it is simply more efficient for businesses to switch to computerized accounting.

What is Computerized Accounting?

The only difference is that it is all of your accounting done digitally as opposed to with pen and paper. With this system, you only need to provide minimal information and the program will automatically work out all of your finances and place them into neat categories for you to review and print out if you need to. Computerized accounting provides a simple, quick method for laying out updated information on your business in a way that anyone can understand.

What Could Go Wrong With Manual Accounting?

As it uses the same process and methods as computerized accounting programs and there are many trained professional accountants out there that you could hire for your business, nothing can go majorly wrong. There are, of course, a few things to consider before making the choice between manual and computerized accounting systems for your long term business plan.

• Manual accounting processes take up to 10 times longer to complete than when done on a computerized system.

• Even with a trained accountant, human errors may occur during manual account processing.

• With manual accounting, none of your books or logs can be backed up unless it is physically written more than once.

• Financial statements are generally only prepared and given at the end of the quarter when manually done by an accountant but with a computerized program, you can print out a financial statement at any point of the day, month or year.

• Manual accounting systems can only be done by proper, educated accountants as it requires specific training to do the calculations whereas digital systems are programmed to automatically do all of your calculations for you.

• If you choose to have your accounting done manually, it can cost much more than paying once off for a computerized program and being able to use it forever.

• Manual accounting requires its own set of specific books, also costing unnecessary money where you could store everything on one database that you can customize to your unique system.

• With manual accounting, there is a lot less privacy as there is constantly a third party involved and to be consulted.

• Many people will end up doing their own accounting to avoid their privacy being compromised with another person involved – this is one of the biggest problems with manual accounting and why many people will end up doing their books incorrectly.

• Some may not be able to afford accountants for their businesses as it may be a small or independent business.

Sticking with manual accounting could not only slow your business down but dramatically reduce its efficiency, this could eventually be detrimental to the financial well being of you, your business and the workforce that you made part of your team.

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

- The Capex Team

Top Accounting Mistakes Made by Small Businesses

Small businesses don't have the kind of resources that larger businesses have. It also means you end up wearing several hats and handling several tasks yourself. On the surface, this may seem like a good way to save money; however it also increases the chances of making mistakes. Unfortunately, most business owners don't realize that they are making mistakes until a professional comes into the picture and points out the errors.

We at CapexCPA are a leading company that provides outstanding accounting services to small businesses from various industries. We have the expertise to handle multiple accounting tasks to ensure that this aspect of your business runs without any glitches. There are many different accounting mistakes at small businesses commonly make, such as:

·         Not Maintaining Financial Records- It can be quite time-consuming and tedious to keep records, and most business owners tend to defer bookkeeping tasks. These jobs need to be completed without any delay and with regularity. Being current with all the rules and regulation helps to ensure that your business doesn't run into any trouble with its financial statements.

·         Not Classifying And Categorizing Correctly- When you are doing bookkeeping, it is essential you create a system that you and your staff can understand easily. Maintaining accounting records isn't enough. Everything needs to be categorized and classified perfectly. This helps you analyze the data and see where you can make changes to improve the profitability of your business.

·         Complicating Things- each business follows a specific system and model and has certain types of accounting systems. More often than not, these models and systems can become quite complex and challenging to manage regularly. The best way to avoid errors and save time is to simplify your systems.

·         Being Inconsistent- It is essential to carry out regular checks for inconsistencies.  You if you don't have clarity about income entries, certain expenses, and irregular numbers, it can cause a lot of trouble for you.

·         Lack Of Tax Planning Knowledge- When it comes to filing taxes, you need to follow numerous rules and regulations. If you do not have an understanding of what is and isn't allowed, it can complicate matters for you. Ultimately, you may also end up losing a lot of money in penalties.

Hire Accounting Professionals

The best way to avoid all these problems is to hire the services of professional accountants like  us. We have the experience and expertise to tackle every single aspect of this job expertly. Our experienced accountants will also provide insights, advice, and guidance with all of your accounts and taxation paperwork. This helps ensure that your business stays on track and that you can make better financial decisions.

Our services aren't just about calculators and numbers. The advice and insights that we provide help you plan for the future, and save you a significant amount of money. If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040.

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

- The Capex Team

Business Considerations During a Downturn

The Great Depression of the 1930s has shown that an economic downturn can happen seemingly at the drop of a hat; the COVID-19 emergency is showing that it can happen with a sneeze.

Economic declines can happen for various reasons.  They can be industry or service related or seasonal.  When they do happen, as a business owner, you need to evaluate your current operations and determine how you can emerge as strongly as possible.

Software – There are several things to consider.  The first is whether or not your current software is working for you or not.  There are a number of products available on the market and it is possible that you may not need some of the features you are paying for, or may need others.  It would be wise to shop around to see what is new and of benefit to you at the price you can afford.  Some systems are more integrated than others and some incorporate cloud storage and retrieval.  With more remote workers, it may be time to invest in additional software like collaborative software and video conferencing.

Rent and Utilities – Again, with a remote workforce you are probably realizing how much can actually be accomplished without personal contact.  Giving your physical space some consideration, especially in the area of retailing, you may be able to find more affordable accommodations, negotiate better rates for your current space, or think about alternatives.  Along with this goes utility usage.  Check out competitors in the utility arena and see if you can negotiate better rates, or at least an initial discount for changing services. 

Marketing – This may be an opportune time to reflect and analyze just how effective your marketing strategy and campaigns are.  Looking at what worked and what was less effective, you will be in better shape to move forward when things settle down.  Looking a what generated the most revenue and what generated the most profit (these can be two different areas), should give you an idea where to focus your efforts.  There are a number of tools available, like Google Business, to help you understand where your leads are coming from and how many were converted to sales.  It could be a good time to take a look at your website and see if it needs a fresh perspective. 

Outsourcing – This is a time to consider whether you want to continue some functions (accounting, payroll, etc.) in house or to look at outsourcing.  If you are currently farming some work out to other companies or individuals, you can certainly price shop and possibly negotiate more service for less money. 

Diversification – Put your downtime toward productive strategizing.  Look for areas in which you can diversify.  That includes looking toward new markets and customers or to new products or services.  

Difficult times are particularly hard on the small business owner.  This can be an opportunity to reflect on current operations and explore changes for the near and future times.

If you're looking for an accountant in Brampton or Mississauga, Contact our team at CapexCPA today for more information.

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

- The Capex Team

How Cloud Accounting Is all about Time and Money!

Time and money are both crucial to ensure that your business grows successfully. You need streamlined processes to scale your business, and getting this aspect right can help save you money and your accounting staff a considerable amount of time.

Time is essential for making sure that you and your team can focus on more important things like strategic actives that help your business grow. Consider cloud accounting, as it will help you do a lot more than just streamline your processes. Over time, cloud computing can play an essential role in growing your business. Here is a look at how cloud accounting is a time-saving option:

1. Easy Implementation

Getting your cloud accounting solutions up and running is relatively simple & effortless. Unlike onsite solutions that require you to purchase advanced hardware and software, you can access cloud accounting software through either a web browser or an application.

The process of integrating Cloud computing into your existing systems, configuring the software, connecting data sources, and implementing these process can be a time-consuming process.  But once you have the system up and running, you will find that it speeds up your business accounting functions and saves you a significant amount of time.

2. Automation

Once your team starts using the cloud-based accounting solution, a lot of their manual work becomes entirely automated. As all the data & systems are connected, there is no need to re-key transactions in multiple places. There is no use for pencils and paper anymore, as everything from payments & invoicing to the reporting of expenses is entirely digitalized. This gives your team the much needed time to carry out deep-dive reporting, build vendor relationships, etc.

3. 24/7 Access

The internet has definitely boosted productivity for people and businesses all over the world. Cloud-based solutions take full advantage of the internet and other related technologies to ensure that your business can make the most of the technology.

Now that users can access their data, software, and tools from any device with internet connectivity at any time during the day or night, it boosts their productivity levels.  Users can either be at their desk, travelling, at an airport or even at home; they no longer have to wait for approvals for an entire day on an urgent issue.

4. Built-In Updates, Maintenance, and Support

Financial management & accounting software on cloud-based solutions are hosted. This means all of your data & tools are handled by the vendor's team and available via secure servers. This directly converts to significantly lower costs and much more time for your business, as your resources are not being used to maintain your systems. Whenever there is a software update or a “glitch” of any kind, the vendor’s team will take care of this issue, which is an added benefit of using cloud technology.

For further information about cloud accounting and why it’s great for your business, feel free to contact Capex CPA via our website or give us a call at 416-903-4040, and we will get back to you.

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

- The Capex Team

Hey Jag - Get me that $40,000 Interest Free Loan...(Canada Emergency Loan Program)

Here's the update for this week on what changes came through the pipeline. The loan application came out today around 2-3 hours ago and I'm sure all of you received notifications but please read the below very carefully and you will understand my perspective on this matter.

SHORT SUMMARY:
This loan is really meant for people that have employees and had been paying employees on payroll during the 2019 year. If you did have employees and did not pay over $50,000 during the year you do not qualify for the loan. If you want to qualify for this loan I wrote a way to do it at the bottom of this email using #TaxTechniques. If you really want the $40,000 interest free loan you can go for it but it will cost you net/net a total of $862.16 more plus the extra red tape and audit exposure goes up. The loan is available until Dec 31st 2020.

I personally think it makes more sense to apply for any loan using BDC or another bank as it's not only cheaper but you can keep the Dividend tax savings we generated during your year-end process. Direct tax savings are better than going through a lot of red tape with the CRA.

Higher Audit Exposure - I just want to caution anyone applying or taking these government Loans/Benefits. There will be a huge spike increase in Audits starting Oct 2020. If you haven't already done so I would recommend signing up for our Audit Defence Program so you are protected during the anticipated audits. All our monthly clients on our monthly plan are already auto registered so no action required. If you are not registered please be reminded that we charge out $250/hour for Audit support. Typical audits last about 10-15 hours. The cost of Enrollment into the Audit program is a flat $500/per year.

DETAILED ANALYSIS:
Canada Emergency Loan $40,000 Interest Free Government Loan

• The Canadian government is providing relief to "Eligible" businesses with a $40,000 loan. The loan will be provided through the big Banks (RBC, Scotia, TD, CIBC, BMO etc).

• Once you apply using the big banks portals the government will review your enrollment request and once approved the funds will be in your account within 5 days.

• The loan is interest free until Jan 1st 2023. After Dec 31st 2020 the balance of the $40,000 line of credit will be converted into a 5 year loan maturing on December 31st 2025. The interest rate after this period will be 5% per annum

• If you pay 75% of the balance of the term before Dec 31st 2022 there is a opportunity to have $10,000 of that initial loan of $40,000 be waived so you only have to pay back $30,000

Basic Requirements needed to get this loan are:

1. You must be the main director/president of the corporation

2. Have your Banking Card number 

3. Have your Business postal code

4. Your Company's T4 Summary for 2019. With a $50,000 payroll minimum.

5. You need to report Box 14 on the application.

Non Eligible Companies

1. If your company does not have $50,000 in payroll you are not eligible to apply for this loan. If you had $49999.99 as payroll you are not Eligible for this loan. The Government will be vetting each application as there is a 5 day vetting hold/review.

2. For clients that we usually do Dividends for, the money taken out for the 2019 year does not count towards the $50,000 payroll amount. We do Dividends because it's always more of a tax advantage to do this as it saves you taxes directly.

3. If we filed your tax return as Dividends declared/paid you are not eligible as we can't go back and change this now. High audit exposure if we do.

4. If we filed your tax return as Salary declared/paid you are not eligible if the salary on the T4 summary shows less than $50,000.

How to Become Eligible:

1. In theory if we haven't filed your 2019 tax return we can turn the Loans taken out during the year into a $50,000 salary which will automatically make you eligible for the program. I have to look into this in more detail but I ran the following calculation to understand if it's worth it for someone to do this.

$50,000.00 Payroll will lead to the following Taxable expenses
$2371.50 would be the Employee portion of CPP
$2371.50 would be the Employer portion of CPP
$7772.00 would be the total Income taxes for Federal and Provincial.
$12515.00 would be the total Taxes that would need to be remitted to the CRA

Assuming you could get a loan at Prime + 1% = 2.95% +1% = 3.95% for the $40,000 your total interest cost on such a loan would be $1652.84 over 2 years amortization.

Option A: (I Want this loan now)

If you want to get this loan but don't have $50,000 payroll declared on your company than you would need to do the following:

1) Have your 2019 corporate taxes filed with the T4 summary.
2) Pay yourself $37,485.00 must see the money actually leaving your account. So a payment from your corporation ABC to John Doe's personal bank account would qualify.
3) Pay CRA $12515.00 immediately to avoid further penalties and interest. 
4) Pay the CRA penalty for late filing T4 ($250) will come up on NOA after we file. 
5) Apply for this loan online 

Total cost of applying for this loan is $12515.00 taxes minus the $10,000 loan forgiveness = $2515.00 total actualized cost. This is the true cost of borrowing. 

Option B: (I'll get my own Loan with Jag's help)

1) Take Financial Statements and apply through BDC or other banks and go the traditional route. The total interest you would pay over 2 years is $1652.84 total actualized cost of borrowing.

Analysis:
Taking a loan at Prime + 1% = 3.95% would cost $1652.84 over 2 years amortization. So looking at all variables the initial outlook seems like anyone and everyone is eligible for this interest free loan but the way they have structured it seems like it's only really for people who have employees and are on payroll. Anyone that is not on payroll or did not have employees doesn't really make sense for them to apply as the cost of applying is much higher with a lot of red tape.

Option A is better for cash flow purposes only.

Option B is cheaper by $862.16 ($2515 Minus $1652.84 = $862.16) for financial purposes.

Commentary Learning Point
Just because Justin Trudeau makes a program sound super nice on the news doesn't really mean it's that great of a program for everyone. A lot of businesses will not be eligible for this program and those that do want the program will have to pay higher taxes. The system is rigged. I will follow any changes to this program and let you guys know.

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

Entrepreneur Thoughts:

Success is Never owned, it's rented, and the Rent is due Everyday. So keep hustling!

Tough Times Never Last but Tough People Do - Dr. Robert Schuller

Thank you for your attention!

- The Capex Team

COVID19 And How Cloud Accountants Can Help

The Coronavirus outbreak is affecting social and business activities around the globe.  While healthcare workers are diligently fighting the medical battle, finances and commerce are struggling. 

Everyone is attempting to adjust to the “new normal”.  Business operations are, in most cases, struggling to maintain revenue.  There have been some opportunities in the hand sanitizer and odd shortfalls in other supplies.  The once luxury services of delivered groceries has become a popular commodity.

One benefit for businesses is the opportunity to invest the time to give attention to those areas that always seem to be left behind.  Frequently those are the areas behind the scenes like accounting.

Just as we are adapting to fewer social contacts and events, companies are adjusting to a greater use of electronic alternatives in their operations. 

Cloud Accounting

Instead of using a server-based accounting system, the cloud is the best choice.  Using cloud storage means the ability to function completely without cumbersome transfers and additional software for security.

Security is accomplished by establishing a user through an ID of their email address and setting the security level for that employee.  It is as simple as that.  It avoids using a VPN connection or needing to reconfigure a home desktop. 

There are a number of quality applications like Xero, QuickBooks Online, and Intacct that offer all the functions of an accounting system and can be accessed by your employees, accountants, or other key personnel without the necessity to email financial data in large or small chunks, or to use flash drives that need to be traded periodically.  There is an optional two-factor authentication available that will provide even more security.

With remote work situations, the IT staff would not need to be physically present to help your bookkeeping staff do their work.  All of your accounting functions operate smoothly, giving you one less worry.

Outsourcing

If you have been considering outsourcing your accounting work, this is the perfect quiet time to start the process.  With the movement to cloud storage, a whole new world has developed in the field of accounting options. 

Just as described previously, accountants are leveraging their ability to store and retrieve data in clouds.  Bookkeeping is easier to maintain plus you will have the advantage of CPAs and other service team members to help you with advice and guidance toward your business maintenance and growth.

Having access to professionals with relevant experience who have the ability to review your standing and provide accounting assistance and financial counselling is invaluable, and it can be yours through cloud accounting systems.

Leverage for the Future

This is the time to start positioning your company so that it will be attractive to potential investors.  Once this current situation is resolved, investment money will be available again. 

By showing how your business has adapted during a time of crisis, you can leverage this into an opportunity for venture capitalists to see you in a new light.  Using a cloud-based accounting system means you will have more time to focus on operating your business and finding new ways to grow even during a downturn or other predicament.  Having your financials in tip top shape is one way to jump on any opportunity that presents itself. 

Feel free to reach out to us if you want to talk to one of our chartered professional accountants today.

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

- The Capex Team

COVID19 CERB Benefits (How to Apply Guide)

Hi Everyone,

Another week has flown by and it seems like the weeks are getting longer and longer. I hope everyone is doing ok and staying positive.

Here’s the steps on how to apply for your CERB Benefits with screen shots.

I have attached 5 steps on screen shots on how to get your benefits started.  You will need your CRA my account. Once you have access to that please follow the screen shots to get your benefits application completed.  The application is very straightforward it takes less than 10 minutes to complete. I can't complete the application for you because it asks for you to 'attest' to the eligibility requirements. 

Basic Eligibility requirement:

1. You must live in Canada 

2. You are over 15 years of age 

3. You have stopped work due to COVID19 for 14 days. This includes employment income, self employment income and other federal benefits 

4. You have not quit your job voluntarily 

5. You have not applied for EI 

6. You have earned a minimum of $5,000 income within the last 12 months 

7. You can apply for this benefit for a maximum of 16 weeks. 

After you agree to the Eligibility click on the I agree on the certification and Bob's your uncle. 

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

If you can share this blog with your social network so everyone can go through this process quickly and painlessly that would be appreciated!

Thanks for your attention!

- The Capex Team

How Cloud Accounting is a Time Saving Option

Though manual accounting has its benefits like it being a bit more personal than digital accounting and being able to be more involved,  cloud accounting can save any business massive amounts of time and money in a way that manual accounting never could.  Unfortunately it is a fact that computers can do these things much faster than we can and when you incorporate the internet into the equation, it gets even better. “The cloud” is simply a better name for the internet, where all your data is stored on one big server that can be safely accessed by only you and your accountant at any point.

5 Ways Cloud Accounting Saves Your Business Time and Money

1.      When you work on the cloud instead of physically or manually, you are able to do as many data information back-ups as you feel comfortable with to make sure your work never gets lost or back dated. Backing up your books and statements is something you can only do on a cloud or computerized accounting system unless your accountant, or you, physically sits down and writes out more copies – that would be more time consuming than the actual processing of your finances.

2.      Running a business can put serious pressure on the owner with remembering to pay and maintain their staff properly – when you use a cloud accounting system, not only do you not have to worry about maintaining one more person on your payroll, you also get to do it from anywhere in the world.

3.      Another reason the cloud saves so much time is due to the fact that it completely cuts out the extra appointments you have to make with an accountant. Digitally you can do your accounting for any duration, at any point without having the stress of your accountant being late or cancelling appointments. Without these few hours or sudden changes in schedule, you will end up having more time to focus on your personal life, family and business.

4.      Sometimes even the most qualified accountants can make honest mistakes but it is usually takes a major hassle and unnecessary time to try rectify. Cloud accounting, due to the fact that it digital and internet based, there are no calculation mistakes or wrong information it can provide when showing the final results and numbers.

5.      Knowing your accountant well as a person can be very beneficial in many ways, including building trust that offers you peace of mind about your private documents – but it is all very time consuming. With cloud accounting you can choose to either keep your business private and your accounting self-done or you can consult a cloud accountant from anywhere in the world to help you instantly with any of your accounting needs.

Working and saving your documents online means that you can access it any time, plus you can work on it at any point, for your own convenience. The cloud is amazing as it works according to your unique schedule.

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

- The Capex Team

To our clients affected by COVID19

Hi Capex Clients,  

This has been a tough week for me as I cancelled all actual deliverable work just to talk to you all. I know this is a very tough time for all of us and we have all been impacted a lot. I wanted to update everyone on the following so please don't fall for any fake news. 

In a effort to help and support all of you I will be hiring 2 new remote position accountants to help guide all businesses through this rough patch. I believe in my team and we are well equipped to continue to service you and guide you through these turbulent times.

Major Announcement from Justin Trudeau Prime minister on March 27th 

1) Qualifying businesses will get the Small Business Wage Subsidy from 10% to 75% to help local business keep employees on payroll. 

2) Qualifying businesses can apply for the Canada Emergency Business account which is a $40,000 loan guaranteed by the Government. This loan will be interest free for the first year and out of the $40,000 the $10,000 will be forgiven. That means you will only have to pay back $30,000 

3) All HST payments have been deferred until June for eligible businesses. What is an eligible business is to be clarified and when that happens I will let you know. 

4) The government is putting an additional $12.5 Billion to help small businesses with cash flow through the Export Development Canada & Business Development Canada (BDC). I have connections here to get your file through so don't worry about it. 

5) Bank of Canada is cutting the interest rates down to 0.25% this is a really bad sign for the economy. It means that the government is super scared of COVID19 as they should be but this will have a very negative adverse impact on the entire global economy for months to come and perhaps a year or so.  

6) We are now under the Quarantine Act. All travelers coming from outside of Canada must self isolate this is a requirement for 14 days. The penalties are high fines and also jail time for those who do not adhere to these rules. This means walk in traffic will be slow for the next few months 

7) Canadian emergency response benefit (Replacing the other two stupid programs Trudeau came out with). We are following the lead from UK and providing $2000 per month to all Canadians for a minimum of 4 months who has lost work due to COVID19. 

8) All tax deadlines have been extended to June 1 and the Tax payments aren't due until Sept 1. I forsee this deadline being extended again and I think (Assuming) that corporate taxes will be forgiven for this year. I would assume this would be a natural step for the government to boost our economy. However, this is my assumption so still save tax money as if you need to pay it by Sept. 

9) Conserve all your cash. All unnecessary expenses in your business cut them asap. We all have to go into Skeleton mode because these top benefits will not be coming into play until April/May. 

10) If you have any questions I am always here for you during this tough time. Ensuring the survival of every client in my portfolio of clients is the priority. I will reply to all emails as soon as I get the chance. I am not ignoring you, I am playing the fire fighter role. I hope you understand and as our clients I am asking for your patience as we go through this tough time. 

Finally, Just a thought: Just like you have to reach out to a Doctor to help with your health issues we are here to help with your business health.

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

We will get through this as one team. I have always said that all my client businesses are in extension to my own. I am hurting for you and I will do whatever it takes to ensure your survival. Stay safe and please stay inside so we can beat this COVID19 together. 

Finally if you can please re-share this on your social media so everyone can get the right information that would be highly appreciated.

Thanks for your Attention.

- The Capex Team

Why the Specialized Skills of a Cloud Accountant Are What Your Business Needs

It can be challenging to make time to handle financials, run reports, close your books, and confirm bookings each month, especially for small businesses. When your team is tied up with other more critical tasks, bookkeeping responsibilities add to the workplace tension in an already extraordinarily fast-paced & stressful environment. 

It is crucial that you start to think outside the box when various monthly processes are just too much to handle. Excessive accounting and other manual tasks, can not only affect your business but also disrupt the productivity of your team.

Having a cloud accountant can prove to be an essential asset and they can provide you with the support you need in managing the accounting aspects of your business. This can help save you a considerable amount of money, time & energy. Here are some reasons why the specialized skills of a cloud accountant are what your business needs:

1. Maximizes Your Time

Undertaking accounting tasks is a daunting task. It includes running through debit & credit details every day as well as during closing on a quarterly or monthly basis. For several businesses, proper maintenance of finances is a full-time job and managing these day to day operations, takes up a significant amount of time even if you have cloud computing software.

By entrusting all your cloud accounting functions to a professional, you save a considerable amount of time. Day to day tasks like entering credits & debits, tracking revenue streams, and confirming invoices become much easier when you hire a remote contractor. It leaves you free to handle your daily duties that are crucial for your small business to be successful.

2. Tap into Cost-Effective Talent

Having an in-house team can be expensive, especially when you are keeping a close eye on the bottom line. Cloud accounting can take these payroll costs out of the equation. You will never have to worry about things like rising negotiations or even employee satisfaction. This means you can now sit back and relax, without having to worry whether your bookkeeping is in capable hands.

The cloud accountant may either work on an hourly contract rate or have a fixed monthly fee. This is one of the best ways to keep accounting costs at a minimum without compromising on the crucial bookkeeping skills that you require to ensure your business grows successfully.

3. Round The Clock Support

Do you ever find yourself dealing with invoices very early in the morning or billing problems late at night? Well, with the assistance of a cloud accountant, you will have uninterrupted support day and night. Cloud accountants usually keep their own hours and work remotely, maintaining a steady line of communication round the clock.

The specialized skills of a cloud accountant will guarantee you quality & efficiency while saving you a significant amount of money and time. Switching to an outsourced professional can be tricky. However, when the benefits far exceed the risk, engaging the services of an expert cloud accountant might be the perfect move for your business needs.

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

- The Capex Team

What Makes For a Top Accountant?

Of course, every accountant with the proper education and training is more than competent enough to safely handle your finances and statements but there are a few qualities that make some just that much better than others. These qualities usually have very little to do with the actual knowledge it requires to be an accountant but with the ethics of the person, therefore anyone is able to learn and apply them. This will make you, as an accountant, a better choice for your market or it will help you, as a client, to recognize traits that make for a great accountant.

Time Management and Organization Skills

One of the first signs of a good accountant is neatness and order. If your accountant is a naturally neat and organized person, you can be sure that they will carry it through into their work. This also means that your accountant will have very good time management skills and everyone knows that time is money. With good time management skills come good work ethic, meaning that you will never have to worry about your accountant missing important meetings or being late with important documentation that could set your business back.

Adaptability

A very important quality for a top accountant to have is a good set of people skills and adaptability. When your accountant is adaptable it means that they will be easy to work with and will be comfortable working according to your schedules and systems – taking greater care of your personal needs. An accountant with good people skills will be able to communicate better in ways of discussing your finances and giving you good business advice. This will naturally add instant value to your business.

Results Driven

Being goal and results driven is always a plus when it comes to someone working with your money and future. When your accountant is someone who likes to physically see the fruits of their labour, you’ve certainly struck gold as that means they will work hard and pay precise attention to the smallest details of your financial books and statements. A top accountant will strive to improve the business experience for any entrepreneur by reducing stress through taking care of the small things and providing you with a massive outcome.

Open to New Ideas

Believe it or not, creativity is a good quality for accountants to have to make them top accountants. Having a long term accountant is like having a long term business partner so not only must they be open to new ideas that you may have but also be able to provide you with them from time to time. It is difficult to find a balance between structure and creativity as they tend to strongly contradict one another, but it will make the entire partnership in the business flow smoothly.

Naturally, there are many more good qualities for a top accountant to have but if you look out for these in your own accountant – you will have a trusted, flexible and loyal companion to handle your finances.

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

- The Capex Team

Dealing with COVID19

It seems like anything you watch on the news now days, is always related to COVID19 (Corona Virus). We are currently going through unprecedented times the closest pandemic event being compared to the Spanish flu of 1918.  

The Canadian government deserves to be recognized for their efforts to help Canada control and ‘flatten the curve’. A lot of misinformation is being circulated on social media and WhatsApp messages so we wanted to take this opportunity to explain the new changes the Government is bringing into affect. 

Major announcements: 

Prime minister Trudeau and our Finance minister Bill Morneau have announced a very comprehensive plan. A few of the major announcements were the following: 

• Canada Child Benefit will increase by $550/per family on average to help parents with young children. 

• Emergency Care benefit – for workers up to $900 every 2 weeks that need to stay home and don’t qualify for EI benefits. 

• Emergency support benefit – Government will support workers financially who do not qualify for EI and are facing unemployment related to COVID19. 

• For Low income Canadians, In May the GST credit will be increased up to $300 and up to $150 per child. 

• Student loans will have 6 months interest free pause on repayments. 

• Boosting funding for women’s shelters and those experiencing homelessness 

• Canadian Banks will be more flexible for delays on mortgage payments and other credit bills for up to 6 months. This is on a case by case basis so you should reach out to your bank. 

• Taxes will be delayed until June 1st for Personal taxes to file your taxes and taxes won’t be due until August 2020 to make payments. 

• Temporary wage subsidy – eligible for small businesses, 10% of wages for three months, to help employers keep their workers on the payroll. Not for profits and charities are included. 

• Small businesses will be supported with Business Credit availability program 

EMPLOYEES: Changes to Employment Insurance (EI) 

With increasing concerns over employment insurance (EI) sick leave benefits, the government has made some adjustments to contend with the COVID-19 outbreak and resulting quarantine and self-isolation.

Normally a worker with little or no paid benefits through an employer who becomes injured or ill can apply for up to 15 weeks of employment insurance.  After a one-week waiting period, the benefits begin.  So, if you break your leg and can’t work for two weeks, you will get paid for one week of lost work.

Employed Canadians who pay EI premiums, including self-employed who have registered to participate, qualify for the benefit.  The criteria includes a loss of at least 40% of usual weekly pay and workers who have worked a minimum of 600 hours in the prior year. Self-employed individuals have a 12-month waiting period prior to their ability to file a claim.

Qualifying for Benefits

For individuals quarantined because of COVID-19, the waiting period is waived.  So, you can receive benefits for the entire two weeks you are quarantined.

A doctor’s medical certificate is waived for patients in quarantine by law or order of a public health official.  This includes those who are asked to self-isolate under the recommendations published and requested by the employer.

If you are quarantined only as a precaution and are not diagnosed at that time, but later test positive for COVID-19, you will be able to receive EI benefits for the additional isolation period with signed medical documentation.  

The current benefit for EI sick leave is 55% of earnings to a maximum payment of $573 per week.

For Canadians not eligible for EI benefits, the government is looking toward alternatives to provide for the loss of income from quarantine and isolation.   

BUSINESS OWNERS: Temporary wage subsidy 

Business owners I really feel for you right now. If you want to discuss business continuity strategy please reach out to me and I am more than willing to help you in any way or form. 

Cash is king and with small business owners being forced to close shop (Restaurants etc) cash will soon start to dry up. The Canadian banks are giving more flexible terms on providing credit so you can apply to BDC (Business Development Center) where business loans will be provided to keep liquidity flowing in your business. 

Taxes are probably the last thing on your mind right now and I don’t blame you. The Finance minister has authorized for all taxes payments to be delayed to August 2020 and although Corporate taxes are still due June 30th the taxes owing are not due until August 2020. 

There is a temporary wage subsidy being provided to small businesses which is 10% of employee’s wages for 3 months to help employers keep their workers on payroll. If you do the math taking $40,000 average salary divided by 12 months = $3333.33 month * 3 months = $10,000 * 10% = $1000 wage subsidy. Although this is not really going to help to keep employees on payroll some relief is better than nothing so we welcome this for small business owners. 

Small business owners will be supported with business credit availability program. If you need to get loans arranged please let me know and we can get those organized for you! 

Continuing Efforts
Remember that all of this is in the beginning phases and will continue to evolve as the situation changes.  Documentation, processes, and other requirements are being developed.  The government is making significant efforts to reduce the difficulties for those persons who are quarantined. 

It is estimated that waiving the waiting period will cost the government $5 million.  The final cost will depend on the extent of the outbreak.

It is important to remain informed of your benefits during this period.  It is equally critical to remain calm and to distinguish between official statements and rumors.

Final Thoughts:
Please stay safe and practice Social Distancing. If you need any help related to business continuity and overall just cash flow planning please reach out. This is a completely free service to help small business owners like yourself. We are here to help you so please reach out. 

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

Links:
https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html

https://toronto.citynews.ca/2020/03/18/morneau-canada-money-coronavirus-covid/

- The Capex Team

Key Decisions To Make When Choosing An Accountant

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

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

1.      Will Saving Money Be a Big Priority?

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

2.      What Method of Accounting Suits You Best?

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

3.      Work With Like- Minded People

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

4.      Is Your Accountant Certified or Chartered?

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

5.      Ask Friends and Family About Their Accountants

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

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

- The Capex Team