Bookkeeping vs accounting If bookkeepers and accountants are both responsible for dealing with your business’s finances, do you need to have both on your team? The simple answer is yes, you definitely need both. While bookkeeping vs accounting may seem like the same profession because they both deal with financial data and require basic accounting […]
Accounting and bookkeeping software is an immensely powerful tool that acts well beyond merely a database to collect your business’s accounting information. Learning how to organize that data correctly is what guides you in understanding your business’s financial story. The thing is, there isn’t a single best way to organize the data. The software (and […]
For most small business owners, it’s safe to say that collecting GST/HST on behalf of the government is nothing short of a nuisance. And yet, it is a must. Unless your business falls into the category of businesses that makes less than $30,000 in annual revenue and also doesn’t choose to voluntarily register to collect […]
We all make mistakes; it’s a part of life and it’s certainly a part of being a business owner. If this opening line sounds familiar, it means you read our last blog on the top 5 B2B marketing mistakes to avoid (and if it doesn’t sound familiar, then go and read that article — it’s […]
The difference between using cash-based accounting and accrual accounting is an important one for understanding and measuring the overall financial health of your business. And yet, that difference is frequently misunderstood. That’s because cash accounting is typically easier to understand (and many use their bottom line bank balance as a measure of how they are […]
Bookkeeping and accounting software is a powerful small business tool — yet its immense value beyond data entry is frequently overlooked. Many business owners don’t realize that by taking the time to set up their software to meet specific needs, it will then produce reports that speak directly to the health and wellbeing of their […]
A quick Google search will turn up dozens of articles on bookkeeping fraud and the red flags warnings to watch for in order to protect your business. But while bookkeeping fraud is a grave offence that can seriously affect your bottom line, in reality, it isn’t overly prevalent. Sure, there are stories of the dishonest […]
As a small business owner, there are probably two words you fear the most — tax audit. Just thinking about a dreaded audit can be crippling, let alone actually going through the process of one. When that letter comes, it can be nerve-wracking because, as a small business owner, it makes you feel guilty or […]
There’s a lot of details to think about when starting a small business. And unless you have a background in accounting or are a fan of numbers, figuring out how to manage your books is probably not your favourite task. But without proper processes in place from the beginning, unpleasant surprises can pop up, goals […]
Last month, Federal Minister of Finance Bill Morneau tabled his first budget. It has already been much discussed and debated, with plenty of media coverage and analysis. According to some pundits, small businesses were hard hit; whereas others say that there was no significant pressure on – or benefit to – small businesses. With such […]
Businesses of all sizes benefit from financial forecasting but it’s especially important for small to mid-sized businesses because they rarely have the additional resources to ride out financial troubles. Forecasting starts with examining last year’s financials and then creating a budget based on that history, paired with what you can reasonably expect to see in […]
Whether or not the New Year is the start of a new fiscal year for your business, the changing of the calendar is always a good time to take a step back and map out the financial aspects of your business. Take a look at your revenues, expenses and cash flows over the course of […]
Cash flow cycles are typically reviewed as part of a business’s overall financial planning. Defined as measuring how long it takes for a company to recover the cash that it invests in ongoing operations, understanding the cash flow cycle of your business is an integral part to maintaining its financial health. However, when examining and […]
Business owners largely see bookkeeping as a data entry job. But there is a huge gap in this way of thinking versus what bookkeeping actually is and what it can do for a business. Bookkeeping is much more than simply hiring someone to enter data as quickly and cheaply as possible. It is about creating […]
Setting up an accounts receivable (A/R) aging schedule is a critical accounting tool for every successful business because it allows owners to manage outstanding invoices and continually gauge the financial health of their business. A typical aging report lists unpaid invoices by date ranges; consolidating all invoices that are less than 30 days overdue, more […]
Good financial record keeping is essential for every business. So what happens if your books suffer in the hands of an incompetent bookkeeper? It could be something as simple as having key pieces missing or something as serious as criminal activity. One small business we know – let’s call them Company XYZ – hired a […]
Bad Debt in QuickBooks Occasionally you will be required to write off bad debt from a customer. This should only be done after you have made an effort to collect the money from the customer or at the direction of your accounting professional. There are several different steps to recording a bad debt. […]
Changes to the General Preferential Tariff and What it Means for Importers As of January 2015 the federal government plans to remove 72 countries from the “General Preferential Tariff” (GPT) list. The GPT was first implemented in 1974 and offers lower-than-normal tariff rates for imports from developing countries into Canada. Under the GPT, Canada […]
Seven Weekly Tips to Keep Your Finances Organized Over the Long Term “As the owner of your business, you are the key to its success,” says Mark Digney, CGA. Mark should know, not only does he advise small business owners from his Williams Lake office, he is also owner and president of Digney & […]
Key Internal Controls for Small Business Owners 1. Open all the mail! This is often a quickly relinquished responsibility and it really shouldn’t be! Awareness of key documents include tax notices, tax assessments, payables, bank statements, cleared cheques, customer payments and legal notices… all need the attention of the owner even for 5 […]
6 Best Bookkeeping Practices for Your Business You’ll Want to Have and to Hold Owning a business can be a lot like marriage. There’s commitment, loyalty, and of course passion. If you’re an existing business owner, or if you’re about to take the plunge, we’ve outlined an advice speech, 6 Best Bookkeeping Practices for […]
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