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2012 Save Your More of Your Money Lisa Patrick

Tax-Free Savings Account

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Gail Shea, Minister of National Revenue, today highlighted that, as of January 1, 2012, Canadians will have a new $5,000 of room to invest in their Tax-Free Savings Account (TFSA). 

The TFSA is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income.

 

A TFSA can contain a range of investments, similar to those in a Registered Retirement Savings Plan, such as mutual funds, listed securities and guaranteed investment certificates.

 

Each year, an individual’s annual TFSA contribution room is made up of three components:

 

  • the annual TFSA dollar limit of $5,000;
  • any unused contribution room from the previous year; and
  • the total amount of withdrawals from the individual’s TFSA made in the previous year.
 Learn More at Canada Revenue Agency

Find Success through Confidence! Lisa Patrick

Others will sense if you believe in yourself.  Have you ever been talking to someone that you first met and they fumbled while they talked and provided no direct eye contact and seemed nervous?  I think we all have had that conversation at some point in our business career. That confidence or lack of is what will either persuade a potential new client to believe in you and your service or your product.

Not being able to believe in yourself will work against you and actually hinder your abilities.  Lack of self-confidence can be a wedge between you and the successful, profitable business that you’re striving to create. 

How do you overcome?

It is very simple, you need to find creative ways to boost your self confidence.  It won’t happen overnight and it won’t happen without working at it.   Remember, if you take baby steps forward eventually you will be running your way to success.

1.     When you wake up in the morning look in the mirror and introduce yourself to your self.  Take a look at what others see and if you don’t like what you see change it until you are happy with your simple introduction. 

2.     Approach a complete stranger in the supermarket or in the shopping mall and try to strike up a conversation about something that you both have in common at that very moment – “Hi, I can’t get over how busy it is today and they only have 2 people at the till?”  Did they strike you down with a bolt of lightening? Did the earth fall our from under you … No.  Try it again and again – it will get easier every time.

Your homework - Think of creative ways to approach people and build one step at a time!

If you have the finances; research an expert like a business coach an hire them.  Their sole priority and expertise is to teach you to become the confident professional business person you strive to be.

Remember you are your biggest asset in your business and you can empower yourself with confidence to achieve that success you are looking for.

Lisa Patrick

 


Your Secret Weapon to a Successful Business Lisa Patrick

Bookkeeping is something as a business owner we all face and need. It is recession proof and a necessary evil!  As a business owner we are so busy trying to make money that we forget that our bookkeeping can be our Secret Weapon to keeping our money.

Good bookkeeping leads to good business management and growth!

Below are 5 common mistakes made by bookkeepers:

 1.      They do not account for claiming meal receipts and not identifying it in a meal ledger such as a meal & entertainment,  meal travel, meal – living out allow, meal – isolated living, etc.

The government tax department believes a consumption of a meal is part personal.  Although for business expense the meal and the gst paid is 100% deductible by the company.  The Tax claim of the meal expense and the gst on the meal has to be reduced by 50% when prepared for tax purposes.  

In unusual incidents a meal claim for an “isolated” work site, you may claim 100% of the meal expense and 100% of the GST expense.

2.      Claim receipts as a business expense that actually have some personal use by the employees or owners.

It is not uncommon to have to discuss lifestyle related expenses and determine if any part of the expense is business related.

Travel and vehicle are likely ledgers that may have some personal portion that may have to be deducted and or taxable to the employees or owners.

3.      Claim an equipment purchase as an operating cost.

The popular mistake is inputting a computer purchase under office expense.  Because a computer provides more than one years use for the business as all equipment purchases, this expense must be claimed as an asset on the balance sheet rather than on the income and expense.

4.      Without Obtaining confirmation on the use of vehicle in the company,  specifically when claiming a vehicle with an over  $30,000 purchase cost you may be claiming to much GST and when the taxes are prepared the actual asset listing of that vehicle may have to be reduced in value to $30,000.  Although for business expense the vehicle and the gst paid is 100% deductible by the company.  The Tax claim of the vehicle purchase and the gst has to be reduced by the $30,000 threshold when prepared for tax purpose.  When a vehicle is used for a passenger vehicle, the amount eligible is restricted to $30,000 for tax purposes.

5.      Not Collecting GST on every sale within a GST registered company, cause you suspect gst is not a consideration, doubt that belief, collect gst.  

Selling a company used computer, used vehicle to any one, the owner or an employee is considered a taxable sale and gst is collectable.

C2online specializes tools for business owners to ensure they maximize on their deductions.. go to our categories and feel free to browse .. if you have any questions just contact us!

 


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