 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.  Scott Park, CPA, CA
The main difference between charities and NPO's lies in their purpose. A charity must be operated exclusively for one of four distinct charitable purposes:
 Scott Park, CPA, CA
Many people may consider not-for-profit organizations (NPO’s) and registered charities to be the same. However, while both types of organizations may operate on a non-profit basis, the two types are defined differently under the Income Tax Act.  Scott Park, CPA, CA In the 2017 Budget, the Canadian government signaled its intention to target specific tax planning strategies involving the use of private corporations to close tax loopholes and end tax planning strategies that give unintended advantages to some high-income earners at the expense of other Canadians.
 Scott Park, CPA, CA What is Business Valuation? A business valuation is the process of determining what the economic value of a business or company is worth. There is generally no one single way to establish what a business is worth. That’s because business value can mean different things to different people.
 Scott Park CPA, CA A common question I am often asked by entrepreneurs and those looking to create a new start-up business is whether they should start a proprietorship or incorporate?
And secondly, for those that have already started their business as a proprietorship the next question becomes when should they consider incorporation?  Scott Park, CPA, CA I recently attended a liaison meeting between the Canada Revenue Agency and the Chartered Professional Accountants of British Columbia. One matter of particular importance that was discussed was CRA’s letter campaign for 2016. In 2010, CRA began a letter campaign to inform selected taxpayers about their tax obligations and to encourage them to correct any possible inaccuracies in their past returns that they filed. The CRA felt this was an appropriate approach to educate individuals in selected “activity groups” or industries where taxpayers are at a higher risk of misunderstanding their tax obligations. 2016 marks the seventh year of this campaign initiative and they will be sending approximately 30,000 letters to selected taxpayers in early 2016.
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