Startups face numerous challenges, particularly in the realm of accounting. Accounting lays the groundwork for all other business operations and can be complex, but mastering it is crucial for success. Here's a condensed guide on how startups can manage their accounting needs: **1. Importance of Accounting** - Accounting is vital for understanding financial standing, managing expenses, sharing data with stakeholders, analyzing competitors, and identifying investment opportunities. **2. Basic Financial Records** - Essential financial records include bills, receipts, invoices, bank statements ..read more

Converting Your Personal Residence into an Income-Generating Property: A Step-by-Step Guide with Subsection 45(2) of the Income Tax Act (ITA) Converting your personal residence into an income-generating property can be a strategic move for financial stability or for maximizing the value of your assets. However, this transition comes with significant tax implications, especially in Canada. In this blog, we will explore the process of converting a personal residence into an income-producing property while emphasizing the importance of Subsection 45(2) of the Income Tax Act (ITA). Understanding ..read more

Profit First is a financial management system designed to help business owners, including dentists, prioritize profit by making it a priority and not an afterthought in their operations. In contrast to traditional accounting where profit is typically calculated after expenses, Profit First suggests setting aside profit first and then managing expenses with what's left. To implement Profit First, you need to: Read the Book: The first step is to read "Profit First" by Mike Michalowicz to understand the concept and the system. Determine Percentages: After understanding the system, determine y ..read more

Cash flow management is crucial for small business success. Tips include: Optimize cash flow by setting up interest-bearing accounts for your business. Utilize accounting software to track your cash flow and make informed decisions. Stagger bill payments to avoid depleting your cash reserves and maximize interest earned. Avoid customer payment delays by using online invoicing tools and clear payment terms. Schedule payments to occur as close to the due date as possible to retain cash for longer. Consider cash flow reduction strategies, such as buying used equipment or bartering for ..read more

Cash flow management is an essential aspect of business that often requires a well-thought-out strategy to ensure a company remains in the black, rather than incurring debts that could lead to its downfall. Businesses can fail when they overlook this concept, with 80% of such cases being attributed to this oversight. It's crucial that sales exceed expenses and that clients are chosen wisely to guarantee collectibility. Professionals like lawyers may request retainers to ensure timely payments. Advancements in technology have facilitated cash flow management, and implementing certain strategie ..read more

Cloud accounting software works exactly just like the traditional accounting software, only the cloud accounting software just like QuickBooks online is hosted on remote servers of QBO Transaction data is sent into “the cloud,” where it is processed and returned to the user.  All application functions are performed off-site, not on the user’s desktop. Which enables you to use the platform from any devise as long as you can log in to QBO. In cloud accounting, users access software applications remotely through the Internet or other network via a cloud application service provider. Using cl ..read more

How is Business, Really How is The Business?   Maybe it was an idea that struck you out of nowhere, or perhaps your small business’ inspiration was an idea and plan that was years in the making. Whichever it was, your small business is your baby, and running it successfully is something that is of paramount importance to you. With that being said, there are so many aspects to successfully running your small business that it can make even an experienced entrepreneur’s head spin.    It is vital that a business owner has an intimate knowledge and relationship of the inner workings ..read more

Accounting industry has benefited so much from the technology boom. Accounting and running a small business now adays have improved exponentially. It wasn’t long ago that some colleges and university were talking about “general Ledgers” “Books” and so on. Basically, accounting hadn’t changed in a long time. Now, I am pleasantly surprised when I see new apps are emerging that changing accounting and making it so much more efficient and effective to run a business. Business on your fingertips – literally Number one app spot belongs to QuickBooks Online. QuickBooks Online (QBO) This app will empo ..read more

Journey from Inception to Success It is extremely important for start-ups, entrepreneurs and even business pros to keep track of their business expenses. These expenses will reduce your taxes when it comes to file your personal tax returns (t1) or corporate tax returns *T2).  When tax season starts the deductions will help and forms your strategic plans to perform tax planning, maximize tax deductions and minimize tax owing. So here are some categories that already exist. All you have to do is take advantage of any or all of the following expenses that apply to your business.   Start ..read more

5 deciding features in selecting a professional to prepare your personal tax return (T1) Consider these factors when you are looking for a tax professional, please get a professional to help you if your taxes are complicated. 1.                   Education and training There are different levels of professionals who prepare tax returns. Some are CPAs meaning they are university graduates who have passed the rigorous CPA exams. None designated accountants who have graduated from college or university but h ..read more