Securing Your Small Business: Cybersecurity Essentials in the Digital Age

Safeguarding digital properties from unauthorized access, theft, or damage, otherwise known as cyber security, is an essential facet of any business strategy. This is particularly true for small enterprises that might not have the necessary resources or expertise to handle cyber threats.

How is cyber security significant for small businesses?

Cyber criminals often target small businesses, seeing them as easy targets. Verizon's report showed that 28% of data breaches in 2020 involved small businesses. The types of cyber threats frequently encountered by small businesses include:

• Phishing: This tactic involves cyber criminals sending deceptive emails or messages pretending to be from legitimate sources such as banks, suppliers, or customers. The objective is to trick the recipients into clicking on harmful links, opening infected attachments, or disclosing sensitive information.

• Ransomware: This form of attack involves cyber criminals encrypting a business's data or systems and then demanding a ransom to restore them. Ransomware can cause significant disruptions and financial losses for small businesses that depend on their data and systems to function.

• Malware: In this case, cyber criminals install harmful software on a business's devices or networks, such as viruses, worms, or spyware. Malware can compromise the security and performance of the devices or networks, steal data, or corrupt files.

• Denial-of-service: Here, cyber criminals overload a business's website or server with traffic or requests, rendering it unavailable or slow for legitimate users. Denial-of-service can impact the reputation and revenue of a small business that relies on its online presence. The aftermath of a cyber attack can be disastrous for a small business. Possible consequences include:

  • Data loss: Data, encompassing customer details, financial records, intellectual property, or trade secrets, is among the most precious assets of a small business. Data loss can undermine customers' trust and loyalty, expose the business to legal liabilities, or erode its competitive edge.

  • Monetary loss: A cyber attack can lead to financial loss for a small business in multiple ways, including ransom payments, system repairs, data recovery, expert hiring, or customer compensation. IBM reported that the average cost of a data breach for a small business in 2020 was $3.86 million.

  • Reputation damage: A cyber attack can tarnish the reputation of a small business among its customers, partners, suppliers, or regulators. This could result in negative publicity, credibility loss, contract termination, or license revocation.

  • Productivity loss: A cyber attack can interrupt the operations and processes of a small business, leading to delays, mistakes, or inefficiencies. This can affect product or service quality and delivery, customer satisfaction, employee morale, and innovation.

How can small businesses boost their cyber security?

Cyber security is an ongoing commitment that requires continuous vigilance and adaptation, rather than a one-off investment. Small businesses can adopt some simple measures to bolster their cyber security stance, including:

• Employee education: Employees are often the weakest link in cyber security. They must be familiar with the common cyber threats and the methods to prevent them. Small businesses should offer regular training and guidance to their employees on password management, email security, device security, and incident reporting.

• System updates: Outdated systems are more susceptible to cyber attacks. Small businesses must ensure that their devices, software, and applications are regularly updated with the latest patches and security features. They should also use antivirus and firewall software to protect their devices and networks from malware and intrusions.

• Data backup: Regular data backup is crucial for recovery after a cyber attack. Small businesses should back up their data frequently and store it in a secure location, such as an external hard drive or cloud service. Periodically testing the backups to ensure they work correctly is also essential.

• Data encryption: Encryption transforms data into a code that can only be read by authorized individuals. Small businesses should encrypt their data both in storage (on devices or servers) and in transit (when sent over networks). They should also utilize secure protocols such as HTTPS and SSL for their online interactions and transactions.

• Policy implementation: Policies are the rules and procedures dictating how a small business manages its data and systems. Small businesses should create policies defining roles and responsibilities, access rights and controls, acceptable use and behavior, incident response and recovery plans, and compliance obligations.

In today's digital age, cyber security isn't an optional luxury for small businesses—it's a critical requirement. By investing in cyber security, small businesses can shield their assets, finances, reputation, and productivity from cyber threats. This investment not only represents a cost but also an opportunity to earn the trust and confidence of customers, partners, and regulators, thereby gaining a competitive advantage in the market.

Unlocking Your Earnings: Optimal Ways to Compensate Yourself as a Business Owner

Navigating personal compensation can often seem like a daunting task for Canadian business owners. It requires a sound understanding of the financial and taxation landscape and careful consideration of the legal implications. But worry not, as Capex CPA, a leader in online accounting and tax services, is here to simplify this process for you​.

Deciphering Your Business Structure

The first milestone in the journey towards effective compensation management is deciphering your business structure. Whether your business is a sole proprietorship, a partnership, or a corporation, each structure has its unique set of tax, liability, and compensation rules. By partnering with Capex CPA, you can benefit from our expert consultation to identify the structure that best suits your business, while ensuring complete legal compliance​.

Maintaining Financial Independence

A crucial strategy in managing your compensation is maintaining financial independence between your personal and business accounts. Having a dedicated business account can help you accurately track revenues, expenditures, and personal withdrawals. This strategy not only provides a clear picture of your business's profitability but also legitimizes your personal withdrawals.

Choosing Your Compensation Method

1. Regular Salary: For those who run their business as a corporation, drawing a regular salary is a common method of compensation. This not only provides a consistent income stream but also allows you to benefit from employment-related tax deductions. At Capex CPA, we can assist you in setting up an efficient payroll system for correct tax, CPP, and EI deductions, ensuring you stay on the right side of payroll regulations​. However, remember, your salary will be taxed on your personal tax return.

2. Dividends: If you are a shareholder in a corporation, you can opt for dividends, which are paid from the company's after-tax profits. Dividends are usually taxed at a lower rate than salaries. Our team at Capex CPA can guide you in determining the optimal balance between salaries and dividends based on your unique circumstances​. When issuing a dividend, you'll need to generate a T5 slip for the recipient's tax return.

3. Owner's Draw/Shareholder Loans: For business owners operating as sole proprietors or partnerships, drawing funds directly from the business's profits or cash reserves is a common practice. However, these draws should be carefully tracked, especially in a corporate context. If the draws exceed your contributions to the corporation, significant tax implications can arise. If you owe your corporation money, you have a year from your fiscal year-end date to pay it back, or the full amount will be added to your income.

In Conclusion:

Effective management of personal compensation as a business owner in Canada calls for a comprehensive understanding of legal, financial, and tax-related aspects. No matter which payment method you choose, understanding its tax implications is crucial. Capex CPA's technologically advanced team can provide professional tax advice, ensuring compliance with federal and provincial tax laws​. Remember to pay close attention to your personal income tax obligations, as well as other corporate/personal tax requirements such as tax installments and payroll remittances. Let us handle the complexities of business taxation, so you can focus on the growth of your business​​.

Getting Organized as a Small Business Owner in Canada with CapexCPA

Starting a small business is an exciting and challenging endeavour, especially when you are starting from scratch. Entrepreneurs have to manage a plethora of tasks, and it can be overwhelming to juggle everything. To make sure you are always on top of things, it's essential to stay organized. It helps you track your progress, manage your finances, and prioritize your tasks. In this article, we’ll explore some ways that small business owners in Canada can get organized with the help of CapexCPA, an expert accountant in Mississauga, and set themselves up for success.

Keep Track of Your Finances with CapexCPA

One of the most critical aspects of running a small business is managing your finances effectively. It would help if you kept track of your income and expenses, monitor your cash flow, and file your taxes on time. To stay organized, it's crucial to develop a system for tracking your finances. This can be as simple as using a spreadsheet or as sophisticated as investing in accounting software. Whatever method you choose, make sure that you keep accurate records and update them regularly.

Working with a professional accountant in Mississauga like CapexCPA can make managing your finances even easier. They can help you set up a system for tracking your finances and provide valuable advice on how to improve your financial health. By enlisting the help of CapexCPA, you can focus on growing your business while knowing that your finances are in good hands.

Create a Schedule

As a small business owner, you have a lot of responsibilities competing for your attention. To ensure that you’re making progress on all fronts, it’s helpful to create a schedule. This doesn’t need to be overly detailed or rigid, but it should give you a rough idea of how you’ll spend your time. Consider dividing your day into chunks, with each block of time dedicated to a specific task. This can help you stay focused and avoid the temptation to procrastinate.

When you create a schedule, you can prioritize your tasks and make sure that you’re giving each task the attention it deserves. You can also avoid overworking yourself and make sure that you have enough time for breaks and leisure activities.

Use Project Management Tools

Finally, consider using project management tools to keep yourself organized. These can range from simple to-do lists to more complex systems like Trello or Asana. The key is to find a tool that works for you and your business. Project management tools can help you break down larger tasks into smaller, more manageable steps, assign tasks to team members, and track your progress over time. They can also help you stay on top of deadlines and ensure that nothing falls through the cracks.

Using project management tools can help you collaborate with your team members and ensure that everyone is on the same page. It can also help you identify roadblocks and find ways to overcome them. When you use project management tools, you can see the big picture and make informed decisions for your business.

Conclusion

Running a small business in Canada is a rewarding experience, but it requires hard work and dedication. By staying organized, you can set yourself up for success and ensure that you’re making progress towards your goals. Whether you’re tracking your finances with the help of an accountant in Mississauga like CapexCPA, creating a schedule, or using project management tools, there are many ways to stay on top of your workload. With a little bit of planning and effort, you can take your small business to the next level.

Personal Tax Filing in Canada: Everything You Need to Know

When is Personal Tax filing due in Canada?

In Canada, personal tax returns for the previous tax year are due on April 30th of each year, unless that date falls on a weekend or a public holiday, in which case the due date is the next business day. If you are self-employed, your personal tax return is due on June 15th, but any taxes owed must still be paid by April 30th.

It's important to note that if you owe taxes and do not file your return by the due date, you may be subject to interest and penalties, so it's best to file your return on time to avoid these additional costs.

What documents do I need to file my personal income taxes?

To file your personal income taxes in Canada, you will need the following documents:

• T4 slips: These are issued by your employer and show your total taxable income for the year.

• T5 slips: These are issued by financial institutions and show investment income, such as interest earned on savings accounts or dividends from stocks.

• Receipts for any eligible expenses: This may include receipts for medical expenses, charitable donations, or childcare expenses.

• Records of any other income: This includes income from rental properties, self-employment, or any other sources.

• RRSP contribution receipts: If you made contributions to a Registered Retirement Savings Plan (RRSP), you'll need receipts to claim the deductions.

• Proof of tuition and education amounts: If you or your children attended school during the tax year, you may be eligible to claim education and tuition amounts.

Having all of these documents on hand when you file your taxes will help ensure that your return is accurate and complete. Additionally, it is important to keep these documents for a minimum of six years in case the Canada Revenue Agency (CRA) requests to review them in the future.

Is the due date for personal tax returns the same for everyone?

The due date for personal tax returns in Canada is not the same for everyone. For most individuals, the due date is April 30th of each year, unless that date falls on a weekend or a public holiday, in which case the due date is the next business day. However, if you are self-employed, your personal tax return is due on June 15th, but any taxes owed must still be paid by April 30th. It's important to note that even if you have until June 15th to file your return if you are self-employed, it's still best to file as soon as possible to avoid any late filing penalties or interest charges.

What happens if you miss the deadline for filing your personal income tax return?

If you miss the deadline for filing your personal income tax return in Canada, you may be subject to penalties and interest charges. The Canada Revenue Agency (CRA) may also charge a late-filing penalty equal to 5% of the balance owing, plus 1% of the balance owing for each full month that your return is late, to a maximum of 12 months. In addition to the late-filing penalty, you will also be charged interest on the balance owing, calculated from the original due date of your return.

It's important to note that if you can't file your return on time, you should still file it as soon as possible to minimize the penalties and interest charges. Additionally, if you have a valid reason for missing the deadline, such as a serious illness or other circumstances beyond your control, you may be able to request relief from the late-filing penalty by writing to the CRA.

It's always best to file your personal income tax return on time to avoid these additional costs and to ensure that you are in compliance with Canadian tax laws.

Can you claim education expenses on your personal income tax return?

Yes, you can claim education expenses on your personal income tax return in Canada. Education expenses can include tuition fees, textbooks, and other materials required for your studies. In some cases, you may also be able to claim other related expenses, such as transportation and lodging if you had to move away from home to attend school.

To claim education expenses, you must have Form T2202A, which is issued by the educational institution you attended, and you must have paid the expenses in the tax year or in the preceding four months. You can only claim the education expenses if you or the person you are claiming the expenses for was enrolled in a qualifying educational program and the program lasts at least three consecutive weeks.

It's important to keep accurate records of all your education expenses, including receipts and the T2202A form, in case the Canada Revenue Agency (CRA) requests them for review. Claiming education expenses can help reduce your taxable income and lower your overall tax bill.

How long should you keep records of your personal income tax information?

In Canada, you should keep records of your personal income tax information for a minimum of six years after the end of the tax year to which they relate. This includes receipts, invoices, bank statements, and other documents related to your income, deductions, and credits.

It's important to keep these records in case the Canada Revenue Agency (CRA) requests them for review. The CRA has the right to reassess your tax returns for up to six years after the date of the original assessment, and they may ask to see your supporting documentation to verify the information on your return.

By keeping accurate records of your personal income tax information for a minimum of six years, you can ensure that you are able to respond to any inquiries from the CRA and that you have the necessary documentation to support your tax return. Additionally, if you have a dispute with the CRA, having complete and accurate records will help you to defend your position.

Are there any deductions available for charitable donations made in the previous tax year?

Yes, there are deductions available for charitable donations made in the previous tax year in Canada. Charitable donations made to registered charities can be claimed as a tax credit, which can reduce the amount of federal and provincial/territorial income tax you owe.

The credit for charitable donations is calculated based on the amount of the donation and the tax rate applicable to your income. The federal credit for charitable donations is 15% on the first $200 of donations and 29% on any amount over $200. The provincial or territorial credit for charitable donations varies depending on the province or territory in which you reside.

To claim a tax credit for charitable donations, you must have a receipt from the charity indicating the name of the charity, the date of the donation, and the amount of the donation. You can claim the credit for donations made by you, your spouse or common-law partner, or a family member who was dependent on you.

It's important to keep accurate records of all your charitable donations, including receipts, in case the Canada Revenue Agency (CRA) requests them for review. By claiming the credit for charitable donations, you can receive a reduction in the amount of tax you owe and support the important work of registered charities.

Can you claim medical expenses on your personal income tax return?

Yes, you can claim medical expenses on your personal income tax return in Canada. Medical expenses are eligible for a tax credit if they exceed a certain percentage of your net income. The credit is calculated as the total eligible medical expenses, minus the lesser of 3% of your net income or $2,352 for the 2022 tax year.

Eligible medical expenses include a wide range of costs related to medical and dental care, including the cost of prescription drugs, dental services, medical equipment, and other expenses not covered by public health insurance plans. You can claim medical expenses for yourself, your spouse or common-law partner, and your dependent children.

To claim medical expenses on your personal income tax return, you must have receipts or other supporting documentation for the expenses you are claiming. It's important to keep accurate records of your medical expenses, including receipts, in case the Canada Revenue Agency (CRA) requests them for review.

Claiming medical expenses can help reduce your taxable income and lower your overall tax bill. It's a good idea to keep track of your medical expenses throughout the year and to claim them on your tax return when you file.

Is there a difference between the deadline for self-employed individuals and those who are employed?

The deadline for filing personal income tax returns is the same for both self-employed individuals and those who are employed in Canada. The deadline to file your personal income tax return is April 30th of each year if you are an individual, unless you are self-employed.

If you are self-employed, you have until June 15th to file your personal income tax return, but you are required to pay any taxes owed by April 30th. If you owe taxes and don't pay by the April 30th deadline, you may be charged interest and penalties on the outstanding amount.

It's important to note that if you owe taxes and request a payment arrangement with the Canada Revenue Agency (CRA), the CRA may require you to file your tax return by April 30th, even if you are self-employed.

In conclusion, the deadline for filing personal income tax returns is the same for everyone unless you are self-employed, in which case you have an additional four weeks, until June 15th, to file your return. However, you are still required to pay any taxes owed by April 30th, regardless of your employment status.

- The Accountant.

6 Ways to Show Appreciation for Your Customers During the Holiday Season

The holiday season can be a busy time for businesses, whether you sell products or offer services. With so much to do, it's important to take the opportunity to show appreciation for your clients and customers. Not only is it less expensive to retain existing customers than to attract new ones, but the holidays can be a particularly meaningful time to show your appreciation, as people may be feeling stressed and in need of kind words. Here are some ways to reach out to your customers during the holiday season to keep your business top of mind throughout the year:

1. Send a card: A holiday card is a simple but effective way to show your appreciation for your clients and customers. Physical cards in the mail are best, but an email will work as well. If you have a mix of regular and occasional clients, consider more personal cards for those you're closest with.

2. Send a gift: Get creative with your gift-giving. If your business has samples to give away, use those. Alternatively, you can offer a special promotion during the holiday season. If you sell products online, surprise customers with a bonus free sample or free shipping. Service-based businesses can send digital resources as a way to say hello, especially if they're relevant to the holiday season.

3. Send gift suggestions: Help your customers choose gifts for their loved ones by sending gift guides or lists of your most popular products. Service-based businesses can also get in on this by sending email or social media campaigns with holiday gift ideas.

4. Hold a giveaway: Giveaways are a fun way to engage with customers and show off your products or services. You can hold a giveaway on social media or in-store, and offer a prize relevant to your business. Service-based companies can give away a consultation or treatment, while businesses with physical goods can offer a product as a prize.

5. Send notifications about your holiday hours: Make sure to inform your audience about any changes to your business hours during the holiday season. This is also a good opportunity to remind them to get orders in or book appointments early.

6. Offer a way to give back to the community: Provide a way for your customers to give back to the community during the holiday season. This can be a great way to drive engagement while also doing some good. You can hold a promotion where a portion of sales go to charity, or offer a special deal to customers who donate to a specific cause.

By following these tips, you can show your appreciation for your customers and clients during the holiday season and keep your business top of mind throughout the year.

- The Accountant.

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Property Flipping 101: A Guide for Real Estate Investors

What exactly is property flipping?

Property flipping is a term used to describe the practice of buying a property, usually at a low price, and then selling it soon afterwards for a higher price. This can be done with or without making improvements to the property. Property flipping is often associated with real estate investing and can be a way for investors to make a profit by taking advantage of market trends or specific opportunities.

Property flipping can involve a variety of different types of properties, including residential homes, commercial properties, and even land. Investors may buy a property that is in need of repair or upgrade, make the necessary improvements, and then sell it for a higher price once the work has been completed. Alternatively, they may simply buy a property that is undervalued and then sell it for a profit once the market value has increased.

While property flipping can occasionally result in a good deal for the buyer, it can also lead to rising prices and artificial shortages in the housing market. In some cases, it can even damage the market value of a property and negatively impact the surrounding community. As a result, some governments have implemented rules and regulations around property flipping to ensure that it is done in a fair and transparent manner.

The real estate headlines in Canada have been dramatic in 2022. One minute we're seeing strong sales and limited supply leading to big price gains, and the next we're seeing homes selling at discounts of $200,000. For many homeowners, their home is a significant part of their retirement and overall financial health, so these headlines can be nerve-wracking. On the other hand, there are those struggling to enter the real estate market, with sky-high rental prices making it difficult to save for a down payment.

In response to these fluctuations, the federal government announced anti-flipping measures in their spring budget. These measures will apply to any home or rental residential property held for less than 12 months and sold on or after January 1, 2023. Any profits from these sales will be treated as business income.

Property flipping is a popular practice for real estate investors, involving buying a property at a low price, making improvements (if necessary), and then selling it soon after for a higher price. While flipping can occasionally result in a good deal for the buyer, it often leads to rising prices and artificial shortages in the housing market. In some cases, it can even damage the market value of a property and negatively impact the surrounding community. The new rules are designed to protect consumers and ensure that properties are being flipped in a fair and transparent manner.

These changes are also meant to prevent criminals from using house-flipping as a way to launder money, which has been a growing concern in Canada.

There are exemptions in the works for certain circumstances, such as a death in the family, disability, divorce, the birth of a new child, or a job change. If you need to sell your residence within 12 months due to one of these circumstances, you may be able to avoid taxation.

To minimize the impact on your portfolio, it's best to speak with your accountant. They will be able to explain how the new rules apply to your portfolio and give guidance on the best way to structure your transactions to minimize your tax liability. They will also have insights on any tax breaks or incentives and can advise on the best type of account to hold your funds in.

Overall, these new rules are just one more thing to consider when it comes to investing in real estate. It's always a good idea to do your due diligence and understand the tax implications of your investments. By staying informed and planning ahead, you can make the most of your house flipping ventures.

- The Accountant.

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Bill c-32 - Fall economical statement

Today, the Fall Economic Statement Implementation Act, 2022, also known as Bill C-32, received Royal Assent. This legislation includes key measures to help families cope with increasing costs, make housing more affordable, and build a thriving net-zero economy with opportunities and good jobs for Canadians.

One of the key measures in Bill C-32 is the permanent elimination of interest on Canada Student Loans and Canada Apprentice Loans. This will help reduce the burden of student loan debt on young Canadians. Additionally, the legislation cuts taxes for small businesses from 15 per cent to 9 per cent by gradually phasing out their access to the small business tax rate.

Bill C-32 also requires Canada’s largest financial institutions to pay their fair share through the implementation of the Canada Recovery Dividend, a one-time, 15 per cent tax on taxable income above $1 billion for banking and life insurer groups.

In terms of making housing more affordable, Bill C-32 introduces the Tax-Free First Home Savings Account, which allows prospective first-time home buyers to save up to $40,000 tax-free toward their first home. This measure will be available starting in mid-2023. The legislation also doubles the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset increasing closing costs.

Furthermore, Bill C-32 includes a new, refundable Multigenerational Home Renovation Tax Credit of up to $7,500, starting in 2023. This will help families afford to have a grandparent or a family member with a disability move back in if they wish to. The legislation also cracks down on house flipping by ensuring that profits from flipping properties held for less than 12 months are fully taxed, starting in 2023, with certain exceptions for unexpected life events.

In terms of investing in jobs and growth, Bill C-32 supports the launch of the new Canada Growth Fund, which will bring billions of dollars in private investment to Canada to reduce emissions, grow the economy, and create good jobs. The legislation also introduces a new 30 per cent Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada, and eliminates flow-through shares for fossil fuel sector activities by no longer allowing oil, gas, and coal exploration and development expenditures to be renounced to a flow-through share investor.

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said: “Our government is delivering on our plan to make life more affordable for Canadians and build an economy that works for everyone. Whether creating more good jobs for Canadians, making housing more affordable, or helping to make Canada more sustainable and more prosperous for generations to come, the Royal Assent of Bill C-32 is good news for Canadians from coast-to-coast-to-coast.”

- The Accountant.

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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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How to Fill out Your W-8BEN Form

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

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

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

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

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

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

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

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

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

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

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

-The Capex CPA Team

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How to Avoid Awkward Client Conversations and Stay Professional

Let’s face it, awkward conversations happen to the best of us. But when you’re in the service industry and working with clients on a daily basis, these awkward moments can be even more nerve-wracking. Whether it’s trying to find out if your client would like to continue booking with you or asking them about their experience without making it sound like an inquisition, there are all kinds of ways that these situations can go south quickly. Your interactions as an independent business owner don’t have to be awkward and uncomfortable though; there are several ways that you can avoid awkward client conversations and stay professional at all times. Here is our list of must-know tips for staying professional when dealing with clients.

Before the Meeting

Before you even sit down with a client, it’s important to have a plan for the conversation. It’s crucial to stay as professional as possible in all of your client conversations, but this is especially important when you know there might be some uncertainty or discomfort on either party’s end. Before you head into the meeting, try to figure out what the conversation will entail. If you have any questions that you want to ask or even issues to address with the client, jot them down. This will help you to stay on track during the conversation, and it will also help you to remain as collected and professional as possible.

During the Conversation

This should go without saying, but remember to keep an appropriate volume during the conversation. If you’re meeting in-person, you’ll want to make sure to keep your voice low so that it doesn’t distract anyone else in the room. This can be especially important if you’re meeting with someone in an open office environment. If you’re meeting over the phone, be sure not to speak too loudly as well. Remember, you’re representing your business with every word you say and every action you take. Try to keep the tone of your voice as neutral as possible throughout the conversation. If you have any concerns about the client’s satisfaction with your work, you’ll want to keep an even keel. If you feel yourself getting upset or emotional, take a break and walk away from the conversation for a few minutes. This will give you time to collect your thoughts and calm down before resuming the conversation.

After the Conversation

Again, after the conversation is just as important as before and during the conversation. If you’re meeting with someone in-person, you’ll want to thank them for their time. This can be as simple as sending a quick email following up with the client and thanking them for their time. If you’ve spoken with the client over the phone, be sure to send them a follow-up email thanking them for their time as well. If you’re meeting with a potential client, you’ll want to be sure to follow up with them as well. This will help to show that you are professional and appreciate their time. Sending a quick email following the meeting will do wonders and let the client know that you’re serious about working with them.

Conclusion

The most important thing to remember when you’re dealing with a new client or one who you’ve worked with in the past is that you always want to stay professional. This can be easier said than done, but as long as you are prepared and have a game plan, you’ll be able to navigate any awkward client conversations. If you follow these tips and prepare yourself for the types of conversations that can go awry, you’ll find that these situations are much easier to navigate.

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

-The Capex CPA Team

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How to Handle a CRA Audit on your Business

Operating a small business or start-up comes with a lot of stress.  One of the things you don't want to hear is “tax audit” but it still can happen.  For some reason, the CRA has chosen you either because of some red flag like late filing or just random happenstance.  If it does happen to you, here are some points to consider.

 Don't ignore the notice.  Deal with it immediately by contacting your preferred Capex CPA Tax consultant.
Here’s a list of other great Accounting firms for you to review Accounting Firms in Canada

 If you speak with a CRA agent, be polite and answer all questions but be as concise as possible.  If you start fumbling, the agent may become impatient and it is likely that you will provide some piece of information that the agent will target and extend the audit further.  In fact, it is best if you have your accountant deal with the CRA directly.  Tax professionals are able to help the agent with the information they need without extraneous details.

 Produce Your Records

 Make sure they are accurate and up to date.  In fact, the best policy is to keep them organized throughout the year.  If you find it a struggle, hiring a skilled bookkeeper may be well worth the money.

 If you were wondering, here is the general process for a CRA audit.

 •        You will receive notice from a CRA auditor by mail, phone, or both.  This notification will include the time span that the audit will cover and the documentation you will need to produce.

•        After you submit the documentation electronically, the auditor will begin the review.

•        The auditor will prepare and send you a letter notifying you of the proposed adjustments the auditor recommends.  You will have 30 days to offer a rebuttal. 

•        After that time, a final letter will be issued that will order:

•        No adjustment

•        Adjustment with the amount of additional tax to be paid. 

•        Adjustment with the amount of refund you are owed.

 If you do not agree with the assessment, you can file an objection.  This will extend the time for the payment of the extra tax until the dispute is resolved.  You also can file a complaint if you do not feel the agent's actions were unsatisfactory.

 The CRA maintains a system to identify tax returns and subsidy claims that are prime targets for audits.  This includes the number of errors on previous returns or indications that the business will not pay its tax obligations in a timely manner. 

 The CRA auditor has the right to examine all books, records, documents, and other pertinent information.  That will include ledgers, journals, payroll, invoices, bank statements, and contracts.  They are also allowed to look at the personal records of the owner(s) including mortgage, bank records, and credit cards.  If there are other individuals associated with the business like spouses or investors, the audit can also involve their personal records as well.

 Remember that the auditor can request information or documents in addition to that which was in the original request.  You can send them electronically.  The auditor may also make copies of your documentation if the audit is in person. Capex CPA has qualified and experienced tax consultants to help you with your CRA Audit. Contact us today click on this link —> https://capexcpa.com/contact

-The Capex CPA Team

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Can I Claim Work From Home Expenses?

If your workspace is now in your home, you are allowed to deduct certain expenses from your personal income tax return.  This will reduce the total tax liability.  If you have never claimed this expense before, be sure to review the choices on claim methods to find the option that suits your situation better.

The temporary flat method applies to those who worked from home for over 50% for at least four consecutive weeks from 2020 through 2022 due to Covid restrictions.  In this option, you claim $2 per day to a stated maximum.  You are not required to maintain documentation and your employer is not required to complete a T2200.

Keeping Records

The other option we advise our Mississauga clients, is the detailed method which covers eligible employees who work from home and those who were restricted to work from home due to Covid in 2020 through 2022.  For this you must keep records of all expenses and your employer must complete and sign a T2200 or T2200S.

Obviously, with the detailed method, there will be more records to have on file plus you will need to determine the amount of space you allocated to your home office.  Supplies and phone services are dealt with on T777S or T777. 

Renting

Before you begin, realize that if you rent a home or apartment, you can deduct a percentage of that rent payment based on the amount of space you use for the home office.  However, if you own you cannot deduct the percentage of the mortgage principal.

Calculating Space

To calculate the space, total the square footage (or meters) of the finished areas of the home (including halls, baths, and kitchen) and the size of the space you use for work and find the percentage that you allocate to your employment.  If you simply used a portion of the open space or common area, you need to calculate the percentage of that room.  If it is a common area or a room also used for other purposes you need to determine the number of hours daily and develop the percental of time you used the room for work. 

Similarly, you can claim a percentage of the utilities, internet access, rent, etc.  There are also exemptions like furniture, replacing windows or appliances, etc.  Also, not eligible are costs for electronics (laptops, speakers, phones) or accessories (mouse, headset, camera).

If you are trying to decide between the two methods, here is a brief example.  If you pay $2,000 per month in rent and use at least 10% of the overall space for your office, your expenses will be higher than the $500 flat fee deduction.  If you did not keep any of your utility statements, now is the time to see how much documentation you can compile.

This deduction can impact your tax burden if you are eligible.  For more information or help with this issue, contact a Capex CPA tax consultant.  We are a leading Real Estate Accounting firm and one of our Accounting professionals will be able to better advise you on the best alternative for your situation. To contact us today click on this link —> https://capexcpa.com/contact

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Carbon Tax Audits

What is Carbon Tax?

Emissions are directly impacted by carbon pricing. In general, this means that companies that manufacture or distribute carbon-based fuels must pay a set price for each tonne of carbon dioxide they release. When it comes to reducing carbon emissions, the price normally rises gradually over time, allowing consumers and businesses time to adjust to the new price.

Things you need to know about Carbon Tax

Each year, as temperatures fall, there is a commensurate increase in heating requirements, a surge in natural gas demand, and consequent increases in natural gas prices.

Reduce Greenhouse Gas Emissions In A Systematic Manner

The historic and revolutionary Paris climate agreement was signed by Canada in 2015, aiming to keep global temperatures from rising more than 2 degrees Celsius over preindustrial levels.

According to the established structure, if no provinces approved their carbon tax plans, the federal carbon tax would serve as a "backstop" policy.

Raise the Price of Natural Gas

Several unstated fees are included in the policy framework. The federal carbon price, which rises each April, is the most obvious levy. For example, the initial federal carbon fee rate for natural gas consumption is 3.91 cents per cubic meter (m3). Although the rate will rise to 5.87 cents next year and 9.79 cents by 2022, it will remain constant.

Customers' bills include a delivery or transportation price with a small but noticeable facility carbon fee. Depending on their business rate zone, businesses in Ontario are charged between 0.0036 and 0.0084 cents per cubic meter.

Some Institutions May Be Eligible For An Annual Tax Refund

Because of the carbon tax's considerable financial impact, the legislation mandates that 90% of carbon tax proceeds be returned to people and households. The Canadian federal government gives a "Climate Action Incentive" in the form of a rebate to qualifying taxpayers who claim the benefit on their income taxes to meet this requirement.

The refund payout varies by province, much as the actual carbon tax amount. A typical home in New Brunswick will receive a rebate of $248, while a comparable household in Saskatchewan will receive $598. By the end of June, the federal government had distributed approximately $2 billion in reimbursements to over eight million Canadian households.

Offset Cost Increase of Tax Carbon

Despite the carbon tax, customers can take several proactive initiatives to reduce energy expenses this winter and in the years to come. One way to do this is to improve the energy efficiency of your house or workplace. There are various practical ways to save energy for individuals and small businesses, ranging from doing an energy audit to thinking about purchasing an alternative fuel car, such as an electric vehicle.

Energy Cost Management

A proactive step beyond enhancing the efficiency of your house or company is to collaborate with a competitive retail provider that can assist you in taking advantage of favorable wholesale market pricing, which has been generally lower than default natural gas costs in certain regions.

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

- The Capex Team

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What To Consider When Employing International Freelancers

International business expansion typically entails recruiting personnel in foreign countries or assigning Canadian employees to work in countries other than Canada or the United States. This outsourcing practice can provide various issues for human resource departments, particularly when organizations are expanding globally for the first time.

One of the most significant practical issues is paying employees situated overseas while remaining compliant with tax and social security withholding.

Employing International Freelancers

Even the tiniest businesses have to deal with international partners for a wide range of transactions in this era of free trade and globalization, which may be incredibly frustrating. If you're a small business owner in Canada, you may be considering employing a foreign contractor to perform some of your company's services. As a result, you'll want to be aware of the various tax implications.

Service Rendering

Will the foreign contractor's services be performed in Canada or abroad? Even if the recipient of the services is a Canadian, a non-resident of Canada who delivers services outside of Canada generally incurs no tax liability.

Assume you hire a French lawyer to represent you in French courts in order to recover money from a buyer who refuses to pay you. Because the French lawyer is not a Canadian resident and the services are provided in France, you are not obligated to withhold money at the source.

Assume, however, that the same French lawyer flies to Canada and offers you services on Canadian soil, such as serving as an expert witness in a Canadian court case. The response may be different in that scenario, and you may be forced to withhold a portion of the money.

Withholding Taxes

Non-Canadian citizens pay a different rate of tax than Canadian citizens. Residents of Canada are required to file an annual income tax return. They declare all of their international income and calculate the tax they are responsible for paying. It is up to the Canadian taxpayer to pay or receive a refund depending on whether money was withheld at source, such as by an employer, and the difference is either paid or refunded.

Withholding by the Canadian payer represents the non-ultimate resident's tax, which may be offset by a foreign tax credit in the non-country resident's residence.

If a non-Canadian performs a service in Canada and receives payment from a Canadian, the payer must withhold and send 15 percent of the gross payment. You may be held accountable for the non-resident’s taxes if you fail to withhold the proper amount as a Canadian taxpayer.

Exemptions from the Treaty

There are numerous exceptions to the above norm in Canada's tax treaties. On the other hand, the exemptions are not granted automatically; you must make a formal request through the CRA. Foreign contractors who live in a nation with which Canada has a tax treaty and meet one of the following conditions can apply for a Section 105 waiver, the most commonly granted exemption to small businesses.

●      Those who make less than $5,000 in the current fiscal year are considered non-residents.

●      The non-resident worker is only in Canada for a total of fewer than 180 days as part of their present contract. Thus their stay is not ongoing.

●      Non-resident person's presence in Canada is recurrent, but their total time here is less than 240 days throughout a given period, and under the terms of this contract, they are here for fewer than 180 days in total.

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

- The Capex Team

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Managing Day-to-Day Business Financials

Maintaining a company's daily operations is critical to its long-term viability. Managing a small business is typically delegated to the director or coordinator. On the other hand, larger organizations and companies tend to allocate certain daily management responsibilities to employees or hired professionals like bookkeepers, accountantsnt.ai, and lawyers.

It may appear difficult to keep track of your company's finances when running a business. Because your business is unique, shouldn't your finances be? What are your plans if someone offers you basic advice on the subject? Some financial advice is so obvious that you'll be on your way to better money management in no time at all. No matter how big or small your company is or who your customers are, these basic suggestions are for you if you are a business owner.

Check Your Work and Logistics

Management on a day-to-day basis guarantees that the work is completed appropriately and on schedule. In the event of sickness, emergency, or other problem, measures must be put in place to replace the staff members who cannot perform their duties at the workplace. It's also important to ensure that all business records are kept accurate and up to date.

Check Your Costs

Financially speaking, the worst thing that you can do is ignore all of your outgoings and assume that you will never have to analyze them again. Keeping an eye out for better options as the industry changes and technology improves will help you avoid overspending on items that could be of greater quality. Even once a month will help you avoid overspending. Look into even little charges, even if they're insignificant. Whether you cut costs or receive the same outstanding items, it all adds up over a calendar year.

Manage Your Finances

Another everyday responsibility that should not be overlooked is financial management. Bookkeeping, bill-paying, and payroll management are all part of the job.

Companies must adhere to a strict billing and payment schedule to maintain a positive cash flow. Companies should consequently keep meticulous records of their expenditures, monitor grants and contracts, and provide specific instructions on acquiring supplies and equipment to keep up with demand. Determining who is accountable for specific financial duties like banking, money transfers, making checks, and so on is an important component of financial management.

Businesses are in danger if they don't have precise day-to-day finance, which prevents them from making accurate financial predictions and controlling costs.

Contact an Accountant

If the financial aspect of your business is giving you a hard time, speaking with an accountant may be a good idea. As a side benefit, effective account management will aid in the expansion of your company's revenue and keep your bottom line healthy. In addition, there is the bonus of not having to worry about any figures yourself, which might be beneficial if you prefer to focus on something more important. There are times when it is best to leave the work to the experts. Contact an accountant if you have the funds available.

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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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