In an era where businesses are increasingly being held accountable for their environmental and social impact, sustainable accounting practices have emerged as a vital tool for organizations and their leaders. Sustainable accounting practices refer to the integration of environmental, social, and governance (ESG) factors into financial reporting and decision-making processes. It involves gathering, assessing, and disclosing non-financial data about a company’s effects on the environment, society, and economy. These procedures go beyond conventional financial accounting and concentrate on evalua ..read more

Congratulations! You have just added another brick to the foundation of your own business. You have taken it from the ground up with the decision to give your business a corporate structure. Although your daily business operations have not changed much because of that, you have to realize how many things have changed for you from a tax perspective! What is Incorporation? Incorporation refers to the process of legally creating a new corporate entity or company. When a business is incorporated, it becomes a separate legal entity from its owners or shareholders. This means that the company has it ..read more

Businesses in Canada can take three legal structures: Sole proprietorship, Partnership, and, Corporation. Each structure has different and important implications for liability, taxation, and succession. In this article, we will discuss the incorporation of sole proprietorship which means converting a sole proprietorship into a corporation. What is Incorporation? First thing is first– What does it mean to incorporate your business? In simple words, it means separating your business from yourself. As a sole proprietor, there is no separation between you, the owner, and your business. Incorporati ..read more

In Canada, taxable income includes various sources of earnings and benefits that individuals receive throughout the tax year. Individuals and corporations are taxed on their total income after subtracting allowable deductions. Different rules apply to each type of income, which therefore affect the amount of tax you will have to pay. To file a tax return and claim deductions, you will need to know what type of income you earned. Personal and business tax issues are vast and complicated. To get help, take on board a professional accountant.             Report ..read more

Navigating the Canadian tax system can be complex, especially when considering the variety of tax returns that individuals and businesses may need to file. Understanding these different types of tax returns is crucial for ensuring your compliance with Canadian tax laws, however, and for making informed financial decisions. What Is a Tax Return? Tax returns are annual, quarterly, or monthly forms used for tax compliance and payment. A tax return is a form or form through which income, and any tax deductions and credits, are reported to the Canadian Revenue Agency. When you file your tax return ..read more

Bookkeeping and accounting - do the two terms sound synonymous to you? Do you often use the two of them interchangeably? Sometimes understanding the difference between the two can be tricky. When it comes to managing the finances of your business, making the right decision between hiring a bookkeeper or an accountant can significantly impact your company’s success. Both roles play crucial parts in maintaining financial health, but understanding their differences and knowing when to utilize each can streamline your operations and optimize your financial strategy. Understanding The Difference Be ..read more

As cryptocurrencies gain popularity in Canada, it’s becoming increasingly important to be well-versed in crypto tax planning. By properly understanding the tax implications of crypto transactions, accounting firms can help their clients minimize their tax liabilities while ensuring compliance with all applicable laws and regulations. Understanding Crypto Tax Planning Crypto tax planning involves ensuring that all crypto investments and trades are properly reported on tax returns and that any taxes owed are paid in full. While there are similarities between traditional investments and crypto in ..read more

Are you a Non-Resident of Canada? You’re a non-resident of Canada for tax purposes if you: normally, customarily, or routinely live in another country and are not considered a resident of Canada. You don’t have significant residential ties in Canada, or you lived outside Canada throughout the year, or your stay in Canada was less than 183 days.  Significant residential ties with Canada include: a home in Canada. a spouse or common-law partner in Canada. dependents in Canada. Secondary residential ties that may be relevant include: personal property in Canada, such as a car or furniture ..read more

The Income Tax Act provides for many credits and deductions to help reduce your tax payable. There is one tool in particular that is very powerful in doing that, but often forgotten: the carry forward. What is it, and how is it used? Let’s find out. What are carry-forwards? Carry-forwards are deductions and credits that you can set aside for future use if you don’t need them to reduce your tax payable in the current year. For example, if you managed to bring your tax payable down to zero with only a portion of your deductions and credits available, the remainder can be “banked” (carried forwar ..read more

When starting your own new business, it often makes sense to choose a simpler structure, which is a sole proprietorship. This allows you to test the viability of your business idea and see if the lifestyle and associated stress that comes with running a business match your personality and align with your long-term goals. Alternatively, you may want to keep things simple and not add any unnecessary complexity. Registering and maintaining a sole proprietorship is relatively simple; many business owners don’t worry much about finances until after tax (when the mad rush comes). However, once you h ..read more