Small Business Accounting Challenges

July 10, 2020 by Michelle Duford

Small businesses have specific challenges and needs that are very different from larger more established companies. Budget is typically a concern as small businesses and startups work to get their revenue streams established. There is an additional challenge addressing the technical aspects of dealing with CRA – something many small business are just not able to do.

Here are some common issues:

Lack of understand of what is a deductible expense
Not understanding how GST works
Creating invoices that are not compliant with CRA
Recording revenue and expenses using Cash accounting methods.
Using old and outdated techniques in their business because of lack of awareness of better tools
Using the wrong business structure for their company (ie: incorporating too soon or too late)
Tracking vehicle expenses
Maintaining proper documentation for expenses
Missing or not understanding filing deadlines.
Not tracking personal injections or withdrawals of cash in their business
Using a personal account to run their business
Not registering for GST when required

Warning about CRA scams

June 20, 2020June 5, 2020 by Michelle Duford

Here are some recent examples of CRA fraud attempts:

Caller identifies themself as from CRA and that there has been crimes committed against the CRA and that your file has been submitted to the Federal Court and that there is a warrant out for your arrest. The call display is area code 647 (Toronto). Needless to say this is a somewhat distressing call to receive. If you received this type of call the RCMP Fraud line is 1-888-495-8501.

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The culprits pose as employees of the Canada Revenue Agency (CRA) or Citizenship and Immigration Canada , threatening jail or deportation if fictitious fees or over-due taxes are not paid.

“The victim is then directed to pay the purported fees through e-transfer, money wire transfer or the purchase of pre-paid gift cards, which they are directed to mail to a specific address,” police said in a release.

CRA officials say they are aware of the scam.

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There is also a phone and email scam where a fraudster purports to be a Canada Revenue Agency representative and pressures the potential victim into paying a non-existent debt.

RCMP say they’ve received a number of complaints. Police say people are being called by someone claiming to be from the tax agency who uses threatening and coercive language.

People are also being emailed a link to a website that looks to be the CRA’s and asked to enter personal information.

Police say the revenue agency will never ask for information about your passport, health card or driver’s licence. It will also never leave personal information on an answering machine, or ask you to do the same.

If you want to confirm a call really is from the CRA, call them using a number listed on their website.

Police say you should also ask yourself the following:

Am I expecting additional money from the CRA?
Does this sound too good to be true?
Is the requester asking for information I would not include with my tax return?
Is the requester asking for information I know the CRA already has on file for me?
How did the requester get my email address or telephone number?
Am I confident I know who is asking for the information?
Is there a reason that the CRA may be calling? Do I have a tax balance outstanding?

For more information on these scams and what to do, go to the CRA site at the following link.

https://www.canada.ca/en/revenue-agency/corporate/security/protect-yourself-against-fraud.html

You can also talk to your accountant who will be able to act on your behalf and ensure that the call is legitimate.

Benefits of going online!

July 10, 2020June 1, 2020 by Michelle Duford

Benefits of Online Accounting

Maybe you’ve heard someone talking about cloud, paperless or online accounting and you’re wondering why people are moving to it? There are a lot of reasons business owners, bookkeepers and accountants are making this change.

Here are our favourite benefits of moving your accounting online.

It’s secure and easy to recover

Working in the cloud means you’re working on a platform with multiple layers of security. If your phone, tablet or laptop is broken, lost or stolen, all your data is safely backed up in the cloud. No more managing upgrades or backups or sending files back and forth to your accountant.

Streamline your business

Going paperless sounds great doesn’t it? It’s possible (and easy) with cloud technology! Use your phone or tablet to capture your receipts and manage your expenses easily. Say goodbye to pesky piles of paperwork taking up space and your energy.

Run your business on the go

Access your data, financial information, reports and the information you need to make business decisions on the go from anywhere, anytime, on any device. Free yourself from the office and enjoy the freedom to run your business wherever you want to be!

Improve cash flow, get paid faster and grow your business

Cloud accounting technology includes online invoicing which allows you to send invoices to customers quickly and seamlessly and follow them up automatically. Modern accounting platforms help you improve your cash flow and get paid quicker – what’s not to love?

Access real time financial data

Cloud accounting software gets you financial data in real-time. This means you’ll have the information on hand to make informed, quick and accurate business decisions when you need to.

Add more to your software

Once online you’ll have access to hundreds if not thousands of helper apps. Think of online payroll, cash management, job tracking, customer management, and reporting tools. There are also many industry specific apps that have been designed to work with accounting app like QuickBooks and Xero. If you have a pain point, there’s probably an app out there that can help.

Get information how you want it

Don’t like spreadsheets or boring reports? Quickly access reports, dashboards and other information in easy to understand visual formats. If you understand exactly how your business is performing, you’ll be better positioned to run a successful business. How can you make good decisions if you don’t have all the right information?

Collaborate with your accountant, colleagues and partners

Grant your accountant access to your file and you can expect real-time advice as well! Collaborate with your business partners and colleagues by allowing and restricting user access as you need.

We love it!

We love online accounting so much that it’s all we do! Our passion is helping businesses move to the cloud and thrive there.

Connect with us today to see how we can make this happen for your business, too.