Scott Park, CPA, CA
A new standard for compilation engagements called Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements has been issued by the Auditing and Assurance Standards Board of Canada. This new standard is a significant update to what was previously called a “Notice to Reader” engagement and is effective for compiled financial information for periods ending on or after December 14, 2021. The new standard will affect the work we do for you when you engage us to help you complete your year end financial statements and related tax return. Following the new standard will require us to spend more time on your year end. The standard setters believe that the changes they have made will help users of compiled financial information have a better understanding of the level of work we have performed as well as the underlying basis of the compiled financial information presented. Scott Park, CPA, CA Many Canadians, especially self-employed individuals, have recently received a letter from the Canada Revenue Agency (CRA) indicating that they may not be eligible for the Canada Emergency Response Benefit (CERB) that they received and encouraged the recipient of the letter to repay the CERB amounts before December 31, 2020. This has caught many Canadians off-guard and has them very worried about making CERB repayments with money that they don’t have. New Requirements for Tracking Corporate Ownership Information of Federally Incorporated Companies6/14/2019
Scott Park, CPA, CA
The federal government has implemented changes to the Canada Business Corporations Act (“CBCA”), which come into effect June 13, 2019 for federally incorporated companies. The CBCA sets out criterion for identifying individuals who have significant control over a corporation. It also sets out a requirement for corporations that meet certain criteria to keep a register of these individuals. The purpose of these beneficial ownership registers is to offer better corporate transparency to strengthen Canada’s anti-money laundering regime. Scott Park, CPA, CA
For most businesses, there comes a point when it’s time to hire a professional to handle the financial function of your business operations. If you are at this point in your business, then congratulations! You have grown your business to the stage where you should be handing off some of those hats you wear as a business owner. Although your initial thought may be to hire a full-time or a part-time bookkeeper, a smarter decision may be to outsource your bookkeeping needs to a team of professional accountants. Here are the top reasons why you should consider outsourcing your accounting and tax needs to a professional accounting firm. Scott Park, CPA, CA
Why It Matters There may be a temptation among business owners to label a worker as an independent contractor instead of an employee. Paying a worker as a contractor would provide a business owner with less paperwork and administration ease in the short-term, but it could lead to very costly consequences on unremitted payroll taxes, CRA penalties, Worksafe BC insurance premiums, benefits, and severance later on. The best advice is to get it right at the beginning to avoid future issues. Scott Park, CPA, CA
Many Canadians typically start their own business as a sole proprietorship. This form of business is quite common because it’s the simplest way to structure a business while minimizing costs. As the business grows, the topic of incorporating the sole proprietorship becomes something to think about. Here’s what you need to know when converting your sole proprietorship business into a corporation, which could save you thousands of dollars in taxes. Scott Park, CPA, CA
For many new entrepreneurs and start-ups, the decision to incorporate a business is an exciting yet potentially daunting step to take. The goal of every business owner is to hopefully make a profit, but let’s face it, the start-up capital or money needed to fund the operations of the business when things get started may be a little tight. This typically forces the business owner to do things on their own to get things done even when they are out of their comfort zone or area of expertise. As a business owner, having a strong work ethic and do-it-yourself mentality is certainly a good thing; however, when it comes to something as important as properly incorporating your business it is best to avoid the pitfalls of doing it yourself. The problems can be fixed, of course, but not without time, effort and money. Here are some of the common mistakes to avoid when incorporating. Scott Park, CPA, CA
As the year comes to an end, many business owners may find themselves behind in their bookkeeping or perhaps they haven’t even started at all. This blog is meant to communicate the importance of bookkeeping throughout the year, not just at the end of the year. What is Bookkeeping? Bookkeeping refers to the process of recording the day-to-day transactions within a business. These transactions include purchases, sales, receipts, and payments. A bookkeeper fulfills the role of ensuring that all transactions are properly recorded, which is typically done by using computer programs like QuickBooks Online. They are also vital in supporting the business owner to help them make better decisions on a weekly or monthly basis. Top Reasons So why is bookkeeping so important, anyway? Here are 7 reasons why bookkeeping is important to your business. Scott Park, CPA, CA
On December 13, 2017, the Department of Finance released additional guidance on the split income rules for adults that will take effect January 1, 2018. This guidance provides some clarification on the far-reaching tax change proposals initially introduced back on July 18, 2017. The proposal will expand the tax on split income rules that are currently in place related to amounts received by a family member under the age of 18. In this context, "split income" will generally include dividends or interest, but not salary, paid by a private corporation to an individual from a related business. What You Need to Know If a member of a business owner’s family falls under any of these “exclusion categories” noted below, the CRA will automatically decide not to tax them at the highest marginal tax rate. Scott Park, CPA, CA
Decrease to Small Business Tax Rate Last week, federal finance minister Bill Morneau announced that the federal small business tax rate will decrease from 10.5% to 10% effective January 1, 2018 with a further decrease to 9% effective January 1, 2019. This came as a complete surprise to many considering the announcements he made regarding the proposed tax changes for private corporations back in July to close so called “loop holes” in the Canadian tax system. |
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