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Is your Business in the Red? C2online

As a business owner, if asked this very same question, will you be able to give an answer with a straight face?

At times, in business, owners or managers would assume that their hectic day-to-day activities are a sign that their business is actually doing well.  Watching the frantic activities happening in the stores or the shops, give them that feeling that their business is really making lots of money.

But what if the supposed crazy business activities don’t necessarily mean profitability?  Yes, like activity doesn’t really reflect productivity.
We have to admit, many business owners are at a lost when it comes to understanding how their company’s really doing.
Maybe it’s about time you talk to your bookkeeper and accountant and see if your business is really making the profits that you want.  Let’s face it, how can you deal with a problem that you don’t even know exist.
Do you have the right mark-up for your products or services? 
Are you just on break-even for every sale that you make? 
Is your overhead not eating your profits? 
What business expenses are taking a huge slice of the pie in your budget? 
What costs can you trim down further to improve cash flow? 
Are you collecting from your account receivables on the dates that they are supposed to become due? 
Can you still afford to invest in new equipment or technology for your business?
The questions can go on and on. 
And as you talk to your accountant and bookkeeper, more questions than answers have to be resolved so that you can set your business towards the direction that you want.
Besides, sound business decisions can only be made if you have the right financial information. And the best person to talk about this first is your bookkeeper -- who holds the key to your books of accounts.  Next, is your accountant who can either solidify further, or have a more thorough analysis of your current financial condition.
You don’t have to sleep at night not knowing where your business is really heading.  Hire a bookkeeper if you don’t have one yet.  And make sure that you have a professional who can assist you in keeping your financial house in order.
It pays to know your business numbers!  And there’s no better time to do that but NOW!

Business Alert: Is your Bookkeeping taking a Backseat? C2online
It happens all the time, especially with small business owners.



“Why hire a bookkeeper when I can do it on my own?”


The best of intentions….


We understand—bookkeeping is tedious. It often requires a lot of time and mental effort.
Time that is needed to put out fires or to grow your business, which is why it gets put on
the back burner.


But crucial business decisions should be based on how well the business is doing
financially…and you can’t know that without good bookkeeping records.


And without proper record keeping, your company’s financial statements can be put into
question.


These are some of the common ways business owners run into problems:


Delayed record keeping


This tops the list. Falling behind on bookkeeping has a snowball effect. Small expenses
that seem insignificant at the time aren’t recorded—and because they are small,
business owners disregard them. But over time, they can add up, having an impact on
the company’s financial situation.


Improperly allocated expenses


This can have serious implications for your tax return. Possible scenarios are:


Significant amounts are wrongly assigned as non-tax deductible expenses.
Advances to suppliers and other business entities are not converted to
expenses when the contracts are fulfilled. Your assets will look good, but your
expenses will be understated, potentially leading to business decisions based on
misinformation.
Incorrect classification of salaries to employees and payments to consultants
and/or contractors—which fall into different categories. When these aren’t
classified properly, expense claims and tax deductions can be lost.
Sales Tax. This is an often-neglected bookkeeping task. When a business has
sales, the usual reporting method is to acknowledge sales in the books, and cash
received or update the receivables. But Sales Tax? It has to be declared, but
many business owners forget or neglect to do this.


Advice? Hiring a good bookkeeper will save you money over the long-term and free you
to do what you do best—grow your business.


Unexpected Medical Expenses - How to recoup your loss! C2online

Medical expenses can be an unexpected expense.  Ensuring that you take advantage of every claim opportunity when filing your income tax will save you money. 

We have wrote several times on missed medical claims.  A recent article written by CBC senior writer, John Hembry about 10 medical tax deductions that can save you money, caused us to provide our readers further information.

 He says, “Most people are aware they can claim the medical expenses tax credit, but many don’t keep a running tally because they simply forget or don’t think it will add up to worthwhile savings, tax experts say. For many people, that's a potentially costly mistake.”

Hembry talks about the disability tax credit.  Darlene Lafond from C2Online, a registered public accountant adds that we need to consider, what if a family member is dependent on another family member for food or shelter or clothing – any essential life support on a routine basis: You should discuss with them if they qualify for the dis ability tax credit T2201.They may not require the disability tax credit on their taxes but if the support person needs it, they may be able to transfer any unused disability tax credit to them just because they are providing essential life support, even if the person does not live with the person providing support. Learn more to claim at How to Transfer.

 In addition, Hembry talks about travel expenses related to individuals who live in rural communities and are traveling more than 40 km one way for medical reasons can claim the trips on their personal tax return for a medical deduction.  Keeping a diary of the trips taken for medical reasons to use for a medical deduction on their personal tax return. However, it is critical to know and record the total number of kilometers driven during the year for any medical purposes when you have traveled over 40 km one way. Need a form to help you claim, check out this form Deduct the travel.  Intuit’s Turbo Tax also provides you help how to claim.

Remember when you claim medical deductions on your income tax return to always consult with you an accountant and ensure the expense you are claiming is accurate and examine if you are missing any other claims.

 


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