Embracing Technology

Embracing Technology

You might be wondering why an accountant would be writing about faxes (instead of taxes).  I was recently watching an episode a well known news program. 
In this program one of the people being  interviewed was discussing the Covid-19 Pandemic and some of the early issues. 
This article isn’t about the Pandemic, but it is about technology and how there is simple and inexpensive tools available.

The interviewee mentioned how they were trying to get Covid information to another party interested in compiling information early in the Pandemic sometime in January 2020.  The receiving party was a cash strapped entity and the only way they were able to receive information was via fax.  

First wow. 

The interviewee then mentioned how they didn’t have a fax machine because they hadn’t sent a fax in years. So they went a bought a fax machine.

Second wow. 

He then goes on to describe how the receiving party’s fax was so old it couldn’t receive all the faxes. 
So the sending company bought a new fax and shipped it out to receiving company. 

Third wow.

I suppose I should be focused on the pandemic and the types of things that were going on – but all I could think was – they are sending important information via fax?  And they went out and purchased two more fax machines so they could continue to do that?

My mind was racing – there are much better ways to securely get information to someone else without sending a fax. 

Certainly, the sender could have used a secure online fax service.

Or even better use almost any kind of cloud storage lets you send a secure link.  Some like Sync.com are so secure that only you and who you authorize can see your data.  Sync.com costs around $100 per year – much less than the two faxes machines that were purchased.

As I listened, I was saddened to hear that these two entities which combined have hundreds of employees weren’t aware of these two options, both much less expensive, more secure and much more convenient to use. 

My point of this story isn’t to embarrass anyone, it’s just to bring awareness that there are tools that aren’t just more convenient, but often times are more secure, reliable and less costly.

What about you?  What is stopping you from embracing technology in your business?

Small Business Accounting Challenges

Small business problems

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

CRA Scams

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.