Frequently Asked Questions About Taxes
Misic Accounting • April 6, 2023
When it comes to accounting and taxes, clients have many questions, but they often find answers difficult to come by. Misic Accounting wants to arm you with the most accurate information available to help you deal with tax issues, and to do this, we’ve answered some of the most frequently asked questions about your taxes.
1. What are the tax rates for businesses in Ontario?
Businesses in Ontario are subject to various tax rates, including federal and provincial income tax, sales tax, and other taxes. The federal income tax rate for businesses in Ontario is 15% on the first $500,000 of taxable income and 26% on any additional taxable income. The provincial income tax rate for businesses in Ontario is 11.5% on the first $500,000 of taxable income and 13.5% on any additional taxable income.
2. How do I register my business for taxes?
To register your business for taxes, you need to obtain a business number from the Canada Revenue Agency (CRA). You can apply for a business number online or by contacting the CRA. You will also need to register for other taxes, such as the goods and services tax/harmonized sales tax (GST/HST), if applicable.
3. When do I need to file my business taxes?
The deadline for filing business taxes in Ontario depends on your business type. Sole proprietors and partnerships generally have to file their taxes by June 15th of each year, while corporations must file their taxes by six months after the end of their tax year.
4. What deductions can I claim on my business taxes?
As a business owner in Ontario, you may be able to claim various deductions on your business taxes, such as expenses related to your business, depreciation of business assets, and certain employee benefits. It is essential to keep good records of your business expenses to ensure that you can claim all of the deductions you are entitled to.
5. How do I calculate my business’s taxable income?
To calculate your business’s taxable income, you need to subtract eligible deductions from your business’s total income. The resulting amount is your taxable income, which is subject to income tax.
6. How do I pay my business taxes?
You can pay your business taxes by making installments throughout the year or by paying the full amount when you file your tax return. You can make payments online or by mail using the payment slip included with your tax return.
7. What happens if I don’t file my business taxes on time?
If you don’t file your business taxes on time, you may be subject to penalties and interest charges. It is important to file your taxes on time to avoid these additional costs.
8. Can I get help with my business taxes?
Yes, you can get help with your business taxes from a professional accountant or tax preparer. They can assist you with tax planning, preparing and filing your tax return, and answering any questions you may have about your business taxes.
If you have any more questions about accounting or taxes, get in touch with the expert at Misic Accounting. As the best Chartered Professional Accountant and Bookkeeper in Cambridge, Ontario, my mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I am providing you with accurate financial advice in a timely and efficient manner.
Get in touch with me today!
To learn more about the services I offer,
please click here or feel free to email me at
sasa@misicaccounting.ca.
For many Ontario entrepreneurs, the term "tax planning" might bring to mind a flurry of last-minute calculations and a dash to meet deadlines. But here at Misic Accounting , we believe tax management shouldn't be a seasonal scramble but a steady, year-round commitment. So let's dive deeper and uncover why ongoing tax planning is pivotal to your business's success. Understanding Year-Round Tax Planning Year-round tax planning isn't just an activity; it's a strategy. It's the practice of reviewing, adjusting, and strategizing your financial decisions throughout the year with the aim of minimizing your overall tax liability. By adopting this proactive approach, you can ensure you're harnessing every tax break, deduction, credit, and allowance that could save your business money. Year-Round Tax Planning: The Why and How 1. No Year-End Surprises: With regular tax planning, you can anticipate your tax liabilities and eliminate unexpected year-end tax shocks. Keeping tabs on your finances ensures you're well-prepared and well-informed about your tax obligations throughout the year. 2. Unlocking Tax Savings: Your understanding of the tax code can translate into tangible savings. Ongoing tax planning ensures you're taking full advantage of every tax-saving opportunity, from deductions and credits to allowances and exemptions. 3. Boosting Cash Flow: When you have clarity about your tax liabilities, you're better equipped to manage your cash flow. This foresight supports strategic decision-making, contributing to your business's financial wellbeing. 4. Regulatory Compliance: Ontario's tax laws are dynamic and evolving. Continuous tax planning helps your business stay compliant, thereby minimizing the risk of penalties and interest charges. 5. Strategic Business Decisions: Whether you're planning to expand or make significant purchases, tax implications often intertwine with key business decisions. Year-round tax planning ensures these decisions align with your overall business strategy and are tax-efficient. Making Year-Round Tax Planning Work with Misic Accounting At Misic Accounting , we know that robust tax planning is integral to a solid business strategy. As a CPA-certified accountant based in Kitchener, Ontario, I offer thorough tax planning services geared to reduce your tax liabilities and bolster your profits. Staying updated with changing tax laws and identifying tax-saving opportunities unique to your business is all part of the proactive approach we take to tax management at Misic Accounting. Recognizing that every business has unique tax requirements, we provide customized tax planning services tailored to align with your business's specific goals and needs. So, whether you're a small business in Kitchener, a medium-sized business in Waterloo, or somewhere in the surrounding areas, Misic Accounting is here to guide you through the complexities of tax planning, making it an ongoing, strategic, and beneficial process. Curious to learn more about how year-round tax planning can enhance your business? Don't hesitate to get in touch with Misic Accounting . Let's embark on the journey towards efficient tax management and greater business success together. I offer services such as income tax services , bookkeeping , business accounting , payroll , financial consulting , and more. I offer my services to clients across Kitchener , Cambridge , Waterloo , Guelph , Brampton , Mississauga , Oakville , Burlington , Hamilton , and the surrounding areas. Get in touch with me today! To learn more about the services I offer, please click here . To get in touch with me, please click here or send me an email at sasa@misicaccounting.ca .
Tax season can be a stressful time for many business owners in Ontario. You may wonder how to maximize your tax return and reduce your liability. The good news is that with a little planning and organization, you can ensure that you’re taking advantage of every deduction and credit available to you. In this blog, Misic Accounting will share five tips to help you get the most out of your tax return. These tips include keeping good records, claiming all eligible deductions, using tax-planning strategies, filing your tax return on time, and seeking professional help. By following these tips, you can minimize your tax liability and maximize your tax return. So, let’s dive in and see how you can get the most out of your tax return! #1 Keep Good Records One of the most critical steps to maximizing your tax return is to keep good records. This means keeping track of all your business expenses, including receipts and invoices. By doing so, you can claim deductions on your tax return and reduce your taxable income. If you’re unsure about what expenses you can claim, consider seeking the help of a professional bookkeeper or accountant. #2 Claim All Eligible Deductions As a business owner in Ontario, you may be eligible for various deductions, such as business expenses, depreciation of business assets, and employee benefits. It’s essential to claim all the deductions you’re entitled to in order to reduce your taxable income. This is where a professional accountant in Kitchener can help. They can review your expenses and ensure you’re claiming all the deductions you’re entitled to. #3 Use Tax-Planning Strategies Tax planning is a proactive approach to minimizing your tax liability and maximizing your tax return. You can use various tax-planning strategies, such as deferring income to a later tax year or making contributions to a tax-deferred retirement account. A professional accountant can help you determine which strategies are best suited for your business. #4 File Your Tax Return on Time Filing your tax return on time is crucial to avoid penalties and interest charges. Make sure you know the deadline for filing your tax return and allow enough time to gather all the necessary information and documents. If you’re unsure about the deadline or what documents you need, seek the help of a professional accountant or tax preparer. #5 Seek Professional Help If you’re unsure about how to prepare and file your tax return, consider seeking the help of a professional accountant or tax preparer. They can provide expert advice and ensure that your tax return is prepared accurately and filed on time. Misic Accounting is a trusted accountant in Kitchener that can provide the help you need. Maximizing your tax return requires planning, organization, and knowledge of the tax system. By keeping good records, claiming all eligible deductions, using tax-planning strategies, filing your tax return on time, and seeking professional help, you can ensure you’re getting the most out of your tax return. Misic Accounting is here to help you with all your tax-related needs. After many years working in the financial industry within various fields, I established Misic Accounting in 2017 as I wanted to build something for myself. My mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I provide you with accurate financial advice in a timely and efficient manner. No matter what your financial situation may be, I provide all of my clients with the attention they need and deserve. I offer services such as income tax services, bookkeeping, business accounting, payroll, financial consulting, and more. I offer my services to clients across Kitchener, Cambridge, Waterloo, Guelph, Brampton, Mississauga, Oakville, Burlington, Hamilton, and the surrounding areas. Get in touch with me today! To learn more about the services I offer, please click here . To get in touch with me, please click here or give me a call at (226) 750-3521 .
Accounting and bookkeeping are essential components of running a successful business. A professional accounting firm offers a wide range of services to its clients, including bookkeeping, financial management, tax preparation, and business consulting. They can help you keep accurate financial records, ensure compliance with tax laws, and provide valuable advice on financial management. Many small business owners, however, believe in myths and misconceptions that hinder their growth and success. These misconceptions can lead to inaccurate financial records, costly mistakes, and a lack of valuable financial management advice. To help you steer clear of these misconceptions, Misic Accounting has debunked some of the most widely believed myths about bookkeeping and accounting. MYTH 1: I can do it myself Many small business owners believe that they can handle their bookkeeping and accounting, thinking it’s a simple task. However, accurate and up-to-date financial records are crucial for business success. An experienced accountant can save you time, ensure your financial records are accurate, and ultimately help you make better business decisions. MYTH 2: It’s too expensive Some business owners avoid hiring an accountant or bookkeeper due to cost concerns. However, the cost of hiring a professional can be offset by the time and money saved from accurate financial records and avoiding costly mistakes. Additionally, a professional accountant or bookkeeper can help you identify tax savings opportunities and ensure that you are taking advantage of all available tax deductions. MYTH 3: I don’t need an accountant/bookkeeper Some business owners don’t see the value in hiring an accountant or bookkeeper, thinking they only need them for tax preparation or financial problems. In reality, an accountant or bookkeeper can provide valuable financial management advice, help you make informed business decisions, identify areas for improvement, and assist with financial planning and budgeting to reach your business goals. If you’re looking to steer clear of these myths, reach out to Misic Accounting . Established in 2017, our mission is to provide you with the information you need to help you make informed decisions about your financial situation. We use the most up-to-date financial analysis and computer technology to ensure that we are providing you with accurate financial advice in a timely and efficient manner. However, we do not see these tools as a substitute for professional accounting, tax, and business advice. No matter what your financial situation may be, we provide all of our clients with the attention they need and deserve. We offer our services to clients across Kitchener, Cambridge, Waterloo, Guelph, Brampton, Mississauga, Oakville, Burlington, Hamilton, and the surrounding areas. Also offering Remote Accounting and Bookkeeping Services to clients all over Canada. Get in touch with us today! For a complete list of our services, please click here . If you have any questions about Misic Accounting , we’d love to hear from you, please contact us here or give us a call at (226) 750-3521 .
For many businesses, having the right accountant can be a game-changer. A great accountant can assist with financial matters such as business formation and incorporation, tax planning and preparation, and financial statement analysis. They can also provide ongoing support and advice to help individuals and businesses make sound financial decisions and achieve their financial goals. But with so many professionals out there, it’s hard to know which one is right for you. To help you narrow down your list, Misic Accounting has written down a list of the top five things to look for when hiring a CPA. 1. Expertise in small business accounting When choosing a CPA, one of the most important things to look for is their experience in small business accounting. An experienced CPA will have a deep understanding of how businesses work and be able to provide valuable advice regarding tax strategies and financial planning. Look for an accountant who has experience working with small businesses and is familiar with the unique challenges and opportunities that small businesses face. 2. Professional credentials Consider hiring an accountant who has a professional designation, such as a Chartered Professional Accountant (CPA) or a Certified Management Accountant (CMA). These designations indicate that the accountant has met certain educational and professional standards and is committed to continuing professional development. 3. Compatibility It’s important to work with an accountant who you feel comfortable communicating with and who understands your business and your needs. Consider meeting with several potential candidates to see who you feel the most comfortable working with. 4. Attention to detail In the world of business, there is no room for error. Accurate accounting is essential for the success of any business. Look for a detail-oriented accountant who takes the time to understand your business and its financial needs. 5. Responsiveness As a small business owner, you may need to communicate with your accountant frequently and may have questions or concerns that need to be addressed on time. Choose an accountant who is responsive and able to provide you with the support you need. If you’re looking for a chartered professional accountant and bookkeeper in Cambridge, Ontario, reach out to Misic Accounting . After many years working in the financial industry within various fields, I established Misic Accounting in 2017 as I wanted to build something for myself. My mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I provide you with accurate financial advice in a timely and efficient manner. No matter what your financial situation may be, I provide all of my clients with the attention they need and deserve. I offer services such as income tax services, bookkeeping, business accounting, payroll, financial consulting, and more. I offer my services to clients across Kitchener, Cambridge, Waterloo, Guelph, Brampton, Mississauga, Oakville, Burlington, Hamilton, and the surrounding areas. Get in touch with me today! To learn more about the services I offer, please click here . To get in touch with me, please click here or give me a call at (226) 750-3521 .
Misic Accounting wishes you and your family a happy and safe holiday season and all the best for the New Year 2023! We would like to inform our clients that we will be closed from December 26, 2022, to December 31, 2022. We would also like to inform our clients that we will offer 10% off monthly bookkeeping for new clients who sign up in December. If you need any assistance from us during this time, feel free to get in touch with us by clicking here .
Starting a new business is exciting, as you get to be the boss, make all the crucial decisions, and keep a large portion of the profits. However, often entrepreneurs are not prepared for the rollercoaster ride of starting up, which includes managing cash flow, creating awareness, and chasing up debtors. Therefore, weighing up your options before jumping in with both feet is vital. At Misic Accounting , we understand the challenges entrepreneurs face when starting a new business, which is why we want to help you. Therefore, we have compiled a list of six super business tips to empower new entrepreneurs. Tip #1: Build to last First and foremost, build your business to last! Focus on building a company with a legacy by doing what you do so often that you do it better than anyone else. Focus on providing the highest quality you can rather than just quantity. Tip #2: Choose the right niche Identifying a niche will help you narrow down your message and aid in your marketing efforts. Therefore, deciding who your ideal customer is will allow you to be unique and cater to the right audience. You need to find customers that require your help the most, as you can’t be everything to everyone. Not everyone will be a good fit, so be very selective of your customers. It’s arguably just as important as any other factor when starting a new business. Tip #3: Solve a burning problem Ultimately, no matter how good your idea is, nobody will pay you unless you solve a problem for them. The bigger the pain point you can eliminate, the more in demand you will be. Period! The problem does not have to be complicated. It can be relatively simple, but people need to want it urgently enough. Tip #4: Match your personality This one is interesting, and some entrepreneurs may not think about it too much. However, it’s essential that you can be authentic in your business and in everything that you do. The last thing you want is to come off as tacky, fake, and salesy. Tip #5: Be your authentic self You need to have a great passion for what you do, as there will be many days (and nights) when it seems like everything is going wrong. Unless you enjoy the process, you will find it very easy to quit. Even coming from an accounting firm, we would place this tip near the top of the agenda, along with all your numbers and projections. Tip #6: Profit > Revenue Profit is what gets left over after you’ve covered all of your business expenses. So although it may SOUND nice that your business makes $X, that number is irrelevant compared to what you keep and take home. It’s, of course, one of the main reasons you NEED to invest in an accountant or at least a bookkeeper. You MUST, absolutely MUST, be aware of your business’s financial health at any given point in time. It would help to make sound growth decisions and allocate limited resources. Without this, you will surprise yourself one day when you have no money left and may get forced out of business. Don’t let this happen to you. We suggest that you Invest in the right advisors from day one. Get in touch with us today! We hope these five tips help you to make intelligent business decisions. If you need assistance with the accounting side of your start-up, get in touch with Misic Accounting today. As a CPA and Bookkeeper firm in Kitchener, Ontario, we provide a comprehensive range of reliable services. Our services include income tax solutions, bookkeeping, business accounting, payroll, and financial consulting. We serve clients across Kitchener, Cambridge, Waterloo, Guelph, Brampton, Mississauga, and the surrounding areas. To learn more about the accounting services that we provide, please click here . If you have any questions about the financial aspects of starting a business, contact us by calling (226) 750-3521 or emailing sasa@misicaccounting.ca .
Bookkeeping is an essential part of filing for taxes and can be quite a tedious task if one has taken it upon themselves to take care of their finances. It expects one to analyze the data and accurately track financial transactions. Since bookkeeping is a serious business, some professionals have completely devoted themselves to this job and use their expertise to help their clients. It is highly recommended to hire a bookkeeper if you need to save time and energy. To help you avoid some basic errors that could prove to be costly, Misic Accounting has put together a list of the most common bookkeeping mistakes people make. 1. Failing to account for GST/HST correctly It’s important to understand when and if you have to charge and remit GST/HST. As a small supplier, you do not have to register for and charge GST/HST, however, the sale that puts you above the threshold ($30,000 in sales) is subject to GST/HST. After this point, you only have a short time to register because you must do so within 29 days of the effective date. Once officially registered, ensure that you record invoices and expenses accurately by separating the net sale and cost from the applicable GST/HST. This will ensure that your income, expenses, and sales taxes are tracked and filed correctly. This will save you money in the long run. 2. Deducting all of their personal automobile expenses from their income This often happens because the business owner assumes that they “always” work on their business or think that by having a business-related decal on their vehicle, all vehicle expenses are 100% deductible. But it is not the case as only the portion of total vehicle expenses related to the vehicle’s business use is deductible. Business owners need to keep a detailed mileage log of each trip taken that is business related. By comparing the total mileage of these trips to your vehicle during the year, you can calculate the percentage of your vehicle used for business purposes. Understand that it’s your responsibility to keep a mileage log, and should the CRA ever request it, you have to provide it. Failure to provide a record may result in the CRA removing the vehicle expenses claimed on your taxes, or reducing them, which will result in a higher tax bill for you. So keeping this log is not only required but great insurance and backup to your expense claims. 3. Overlooking personal payments made for company costs Business owners frequently overlook personal payments made for company costs. If you own a business but pay for expenditures with your own money, you can deduct those costs from your revenue. This is particularly crucial if you are the owner of a corporation because any withdrawals, transfers, or payments made from the business accounts to the owner must be accurately recorded. If you used personal funds for business expenses, the business’s expenses are merely repayments of the amounts owed to them, rather than being reported as salary or profits. It’s imperative to keep track of these items and transactions correctly and accurately, as it could save you a lot come tax time. To avoid these and other mistakes, reach out to the experts at Misic Accounting . Our services include income tax services, bookkeeping, business accounting, payroll, financial consulting, and more. We serve clients across Kitchener, Cambridge, Waterloo, Guelph, Brampton, Mississauga, and the surrounding areas. For a complete list of our services, please click here . If you have any questions about accounting and bookkeeping, we’d love to hear from you. Please contact us here .
Are you tired of getting a large tax bill at year-end? Tired of spending countless hours piecing together receipts at year-end to frantically try and finish your tax returns on time? And correctly? Are you stressed with the additional tax compliance that comes with growing your team and managing more employees? If so, this accounting solution is for you! This is a perfect solution for growing businesses. As your business grows, the financial aspect of your business requires more and more of your attention. And it’s not just important to grow but to know how to handle the additional demand on your business that comes with growth. For instance, interest and penalties on late tax filing and missed deduction opportunities can cost your business significantly. So, get ahead of these problems now, do not wait until it’s too late! Outsource your monthly bookkeeping and tax compliance to the expert at Misic Accounting , save money and take back your time to put back into your business! Have a look at the services offered, and let’s talk. A. Professional Accounting Services Complete tax compliance (corporate and personal tax returns) Bookkeeping Financial health check-up reports Budget setup and analysis App training and setup Cash flow projections review Coaching session Payroll 15+ employees T4 and T5 filing B. Apps Quickbooks Online Dext Fathom C. Professional Support Monthly CPA consulting Regain your business focus You need to take back the time you’re spending on your business’ bookkeeping tasks. This new service allows you to do just that. I help you refocus your efforts on tasks that make you money and increase your profits. With this new bookkeeping solution, you’ll have everything you need to be able to: Analyze your business at any point in time Make sound business decisions about the future Plan confidently for taxes and stay compliant with the CRA Make sure your employees are paid on time Take back your most important resource, your time! As a seasoned chartered professional accountant and bookkeeper in Kitchener, Ontario, I offer experienced and comprehensive help for a wide range of business needs and can help you to work smarter and reach your goals. I can free up your valuable time, plan strategically, make sound business decisions, and receive professional coaching and advice. What’s more, is that I can organize to meet your needs in a cost-efficient manner with tailored solutions. I have worked with various companies across all industries; this allows me to provide you with a well-rounded perspective. Reach out to me today at Misic Accounting to discuss your bookkeeping and tax needs, and evaluate the most appropriate option for your business! Send me an email at sasa@misicaccounting.ca , or give me a call at (226) 750-3521 , and I’ll work together to find the perfect fit for you and your business. To learn more about the services I offer, please click here or get in touch with me by clicking here .
Maintaining proper accounting and bookkeeping processes gives reliable measures of your business’ performance. So it is safe to say that your company’s growth and success hugely depend on it. However, if accounting and bookkeeping play a major part, then, in that case, it definitely requires specialized talent with a solid background to take on this task. Sure, there are many bookkeeping software packages available online that might convince you otherwise. It doesn’t mean you should do your own books! To show you why you shouldn’t DIY accounting and bookkeeping, Misic Accounting has noted three key reasons in this blog. Keep reading to know what they are and to avoid unnecessary hurdles. 1. It can get complicated Your bookkeeping and accounting records are critical for filing taxes (and avoiding fines and penalties), as well as determining cash flow, expenses, profitability, and growth of your business. Doing them incorrectly would lead to not just compliance issues but losses due to unnecessary penalties and lost business opportunities. 2. You may need to incur additional expenses If your books are not in order or completed correctly, you could find yourself not eligible for certain lending as it’s impossible to present your business’ financial viability properly. Fixing this could take months, especially if books need to be corrected going back many periods. This would most likely turn out to be more costly than simply paying to do things right the first time around. 3. You may lack the expertise Accounting, bookkeeping, and tax knowledge are imperative to take on these tasks correctly. But since most entrepreneurs started their business because of a passion for a different field, accounting is not their strong suit. Also, the business owner’s valuable time does not need to be spent on tasks that do not generate income or move their business forward. You may trust accounting technology platforms to be sufficient, and you don’t need a license to do your own bookkeeping, but outsourcing to an accountant is an investment that you can’t afford to make. Do things right - Hire a professional! A professional specializes in specific accounting, bookkeeping, and tax work. They’re knowledgeable and can much more efficiently complete the work necessary to keep your business compliant, as well as provide you with the necessary financial tools to evaluate your business and its operations. A professional can also help with future planning, whether it be with budgets or forecasts or in regards to future taxes. However, you should look to hire a professional that will be responsive and attentive to your business. What’s most important is developing a trusting and open relationship with the professional, as you’ll want to be able to get answers which might be uncomfortable to hear (although absolutely necessary!). Generally, the prices range vastly depends on the size of your business, structure, employees, etc. You can expect to pay anywhere from $250 per month, upwards to $1,000 plus for larger firms, with more employees and revenues. It’s best to reach out to a professional you trust first and establish a rapport because choosing solely based on price may leave you with an unresponsive accountant. Consequently, you’ll get minimal value, if any, out of that engagement (even it’s cheaper). A quote to remember, “The bitterness of poor quality remains, long after the sweetness of low price is forgotten.” - Benjamin Franklin If you’re looking for a chartered professional accountant and bookkeeper in Kitchener, Ontario, reach out to Misic Accounting . As an experienced accounting professional, my mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I provide you with accurate financial advice in a timely and efficient manner. No matter your financial situation, I give all of my clients the attention they need and deserve. To learn more about the services I offer, please click here . If you have a question, I would love to hear from you. Please contact me here .
Whether you run a small, mid-size, or large business, bookkeeping plays an integral part. Bookkeeping refers to the process of organizing and maintaining financial data and transactions to help you run your business smoothly and efficiently. However, for good bookkeeping, you need to devote appropriate time to this chore, which can become overwhelming while caught up in your daily operations. For this reason, the experts at Misic Accounting have created a handy checklist on how you can handle bookkeeping tasks by yourself. Follow this checklist accurately so that you can do your books like a pro. 1. Refresh and update your financial data daily Your accounting software should automatically sync your bank accounts and credit cards. If it doesn’t, you’ll have to do this manually. This will give you an up-to-date look at your accounts, showing you the money that’s flowing in and out of your business. 2. Reconcile your cash and receipts daily Reconciling your cash and receipts on a daily basis will allow you to recognize shortages or overages quickly. 3. Reconcile your bank transactions daily Since your accounting software automatically syncs your bank activity, you can address transactions regularly rather than waiting for monthly bank statements. Doing this daily will avoid the grueling month-end process. 4. Record and categorize expenses Your accounting software should be able to link to expense reporting apps, like Dext. Utilize these to import your expenses and file your receipts by simply snapping a picture of them. 5. Record any inventory received Enter any inventory you receive regularly. This will ensure that your system is up-to-date and you have the most recent and accurate financial information available. 6. Record payments you receive at least weekly Record and reconcile any payments you receive on at least a weekly basis. This will keep you apprised of which clients owe you money and how much at any given point in time. 7. Invoice your clients Billing your clients regularly helps them pay you on time, and it helps both yours and their cash flow. Make this a regular practice to avoid late billing and payments down the road. 8. Review your employee timesheets weekly Make sure you review your employees’ timesheets on a weekly basis. Your client billing and payroll are affected by these, so you want to make sure it’s accurate. 9. Pay your vendors and suppliers monthly Ensure you maintain good relationships with your vendors and suppliers by paying them on time or scheduling the payments to be made. You don’t want to overwhelm yourself and your finances in the future by postponing payments. 10. Track your financial performance and variances monthly Put all the month’s data entries to use. Evaluate your business’ financial performance on a monthly basis using many of the reporting options in your accounting software. This will be a key driver to making important business decisions. 11. Backup your data If you’re not using cloud-based accounting software, you’ll need to back up your data manually. This will give you peace of mind knowing that your information won’t be lost due to hardware failure or file corruption. 12. Adjust inventory and cost of goods sold yearly Adjust the final month and any others for inventory, sold or marked down in value. This will give you an accurate view of the value of your inventory on hand and will expense any write-downs of inventory. 13. Record any amortization and depreciation yearly Calculate and record any amortization and depreciation accumulated on your company’s fixed assets for the year. 14. Declare any dividends payable Make sure you declare any dividends payable to the company’s shareholders. 15. Declare and record any bonuses payable yearly You can declare bonuses payable to employees at year-end and still deduct them in the fiscal year, as long as they are paid within six months. This will minimize your taxes payable in the current year and could be a viable strategy for your business. Be sure to consult with an accountant to determine if it is the right strategy for you and your business. 16. Prepare your year-end financial statements for your accountant Make sure you’ve reconciled all of your accounts and accounted for all business transactions. Your accountant will use this information to prepare and file your year-end business tax returns, as well as any sales tax returns. 17. Review your return with your accountant It’s important to review your tax return with your accountant to determine your strategy for the upcoming year. Efficient tax planning requires an ongoing, long-term approach by regularly meeting with your accountant. This will ensure that you get as much benefit as possible in minimizing your taxes payable in the upcoming fiscal year. 18. Record any taxes payable at year-end Make sure you record any taxes that become payable at year-end. You’ll get a truer picture of your finances as of the year-end. 19. Prepare your payroll documentation If you have employees, you must submit their T4 tax slips for the previous calendar year by the end of February. You must file and submit T5 tax slips if you have paid dividends. Making sure to do this will avoid any potential fees imposed and keep your employees happy. 20. Review and assess the year It’s important to assess the bookkeeping, payroll, tax, and accounting work that you’ve done over the year. Take this time to evaluate the quality of the work, time, and effort that was required to complete it. If you’re finding that your time is better used elsewhere or to generate income for your business, it is time to consider outsourcing your bookkeeping and accounting work. Always make sure that any effort you put into your business is providing you with a return. If you have any concerns about doing your books or need assistance with your business accounts, reach out to the accounting and bookkeeping expert at Misic Accounting , serving in Kitchener, Ontario. As a Kitchener accounting professional, I provide our clients with peace of mind by offering accurate and timely bookkeeping services. I take care of your books so you can focus on building and managing your business. To learn more about my services, please click here . If you have a question, I’d love to hear from you. Please contact me here .
