TRUST BASICS A trust is a legal arrangement established to manage assets for the benefit of designated beneficiaries. It involves three main parties: the settlor, the trustee, and the beneficiary.  The settlor, also known as the grantor or trustor, initiates the trust by transferring assets into it. Once assets are transferred, the settlor relinquishes ownership and control over them.  The trustee, appointed by the settlor, holds legal title to the trust assets and is responsible for managing them in accordance with the terms outlined in the trust deed or agreement.  The benefi ..read more

Maintaining accurate financial records is paramount for success. Effective bookkeeping not only supports informed decision-making but also ensures regulatory compliance. However, navigating the world of bookkeeping comes with its share of challenges. In this post, we'll explore the five most common bookkeeping mistakes and provide insights on how to avoid them, empowering you to build a solid financial foundation for your business. MISTAKE 1: NEGLECTING REGULAR RECONCILIATIONS Regular reconciliations are the backbone of accurate financial records. Without them, businesses risk discrepancies t ..read more

We are delighted to announce that ConnectCPA has made the coveted Globe and Mail’s list of Canada’s Top Growing Companies for 2023. It is ConnectCPA’s fourth year in a row on the list - we were ranked No. 279 with 148% of revenue growth over a three year period! Our growth is a testament to the hard work and dedication shown by our team and the pain-point we solve for scaling companies. Many of our clients are on this list too and we’re excited for them as well! We’re extremely proud of this achievement, but more-so, what we’re really proud of is the impact made on businesses that we work wit ..read more

As an e-commerce entrepreneur, your journey to financial success starts with mastering the art of bookkeeping. At ConnectCPA, we recognize the unique challenges and opportunities that online sellers face when managing their finances. In this blog post, we're excited to share five essential bookkeeping tips that can empower you to take control of your e-commerce finances and pave the way for sustainable growth. Let’s get to it! 1. SEPARATE FINANCES FOR CLARITY The foundation of effective e-commerce bookkeeping begins with clear financial boundaries. To achieve this, open dedicated business ba ..read more

Managing personal compensation as a business owner in Canada demands a comprehensive understanding of the intricate financial and tax landscape. Determining an appropriate salary and exploring diverse payment methods involve navigating complex tax and legal considerations. In this blog post, we will provide you with a guide on how to pay yourself as a business owner, covering different strategies and key considerations. KEY CONSIDERATIONS Understand Your Business Structure The first step in determining how to pay yourself is to understand the legal structure of your business. In Canada, busin ..read more

We have met with many business owners over the years, and at times, the finance function takes a back seat to growth/operations. Some business owners believe that the finances, bookkeeping and back-office can occur once per year (i.e. a large catch-up project) rather than completing tasks on a more frequent cadence. This rarely goes over well. We strongly believe and urge business owners to ensure their finances are kept up with on a monthly basis. Having monthly bookkeeping done, for example, instead of annual bookkeeping offers several advantages for businesses. Here are a few reasons why m ..read more

Outsourcing bookkeeping services has become a popular option for businesses of all sizes, from small startups to large corporations. A bookkeeping service provider can offer a wide range of benefits to businesses that choose to outsource their bookkeeping functions. In this article, we will discuss the reasons why a company should outsource their bookkeeping to a bookkeeping service provider. COST SAVINGS One of the main reasons why a company should outsource its bookkeeping to a service provider is to save costs. Many clients of ConnectCPA are able to outfit a full finance team (bookkeeper ..read more

To encourage Canadian homeowners to make better use of their properties and to increase housing supply, the Government of Canada has enacted a new tax - the Underused Housing Tax (UHT). The UHT is an annual 1% tax on the ownership of vacant or underused housing. The tax usually applies to non-resident, non-Canadian owners but in some cases, it also applies to Canadian owners. HOW IT’S CALCULATED The 1% tax is calculated on the greater of: The assessed value by a property tax authority (i.e. MPAC) The property’s most recent sale price on or before December 31 of the calendar year EXCLUDE ..read more

Tracking deferred revenue is crucial for SaaS (Software as a Service) companies because it helps them to accurately report their financial performance and provide reliable financial statements to their stakeholders.  Deferred revenue is a type of liability that arises when a company receives payment for goods or services that it has not yet delivered. In the case of SaaS companies, this typically occurs when customers pay for a subscription in advance (i.e. payments received from customers for services that have not yet been provided). Here are four key reasons why tracking deferred reve ..read more

There comes a time in every scaling company where additional information needs to be extracted from day-to-day financial metrics. In order for companies to best use their financial information to make quick and smart decisions, a higher level of precision is usually required. Moving from cash-based bookkeeping to accrual-based bookkeeping is a perfect example and one we see often. Matching expenses and revenues to the months they occurred in provides a more accurate picture of a company’s operations. Providing more visibility and owning the financial statement process are key tasks that a con ..read more