Business Matters February 2016

Dear Client:

Welcome to the February 2016 edition of Business Matters! Some very informative articles.

General

To incorporate or not to incorporate – that is often the question. This article provides a very good overview of what being incorporated means from a legal standpoint. It discusses naming a company, location of head office, federal vs. provincial, ownership, etc. The article does not provide much information about the pros/cons of incorporation. Come see us if you’re thinking about incorporating your business.

Taxation

Have you heard about crowdfunding? Very interesting article. Basically from an income tax standpoint the cash raised is either income (fully taxable) or equity (no tax). Crowdfunding is a very creative way to obtain risk capital. Word of caution – don’t go offside with securities regulators!

Management – I Hear You

This article has two distinct parts. The first part is about listening and proper etiquette when attending a meeting with a formal presenter. Yes you can ask questions (but not all the time). The second part is written from the standpoint of the presenter. A laundry list of what the presenter should do is provided – quite informative. The main point being both employers and employees have a responsibility to ensure that meetings are productive.

Technology – Dashcams

I’m thinking dashcams will become a standard feature in many vehicles within the next 3-5 years. Mass production will likely result in better quality and lower cost: Isn’t technology great! Read on.

Well that’s it for the latest edition. I see by the calendar that the coldest month has passed – and it wasn’t too bad was it?

We hope that you have enjoyed winter so far and are looking forward to those first really warm days of spring……but first February.

Best regards,

JIM M. SMITH CHARTERED ACCOUNTANT INC.

P.S. Do you know where your tax information is?

Business Matters December 2015

Read the entire issue of Business Matters.

It’s not that often that an article on personal finances starts with a discussion about New Year’s resolutions!  The Personal Finance article wants you to do a lot of reviewing.  Review your investments – unregistered, registered and RRIF.  Review your mortgage.  Invest the time to know where you are at and then plan so that you end up where you want to be.

The Technology article talks about a particular type of marshmallow.  Full disclosure – I didn’t know that Google had introduced a mobile operating device called “Marshmallow”.   I still have an ancient Blackberry.  The article is mostly concerned about security.  A good read.  Particularly note the last paragraph – do not go cheap for your business.

Taxation

There definitely are tax benefits for the self-employed.  This article provides a good overview of the types of expenses that can be claimed.  Remember to keep receipts and document how you arrived at the amount for non-arm’s wages, etc.  A great read for those that already are and those that are contemplating becoming self-employed.

The Moneysaver article also has a less than top of the list (for most people) topic when it comes to saving money – lack of sleep.  I’m not sure about the statistics quoted in the first paragraph but the article definitely makes the case that lack of sleep can result in substantial losses for businesses.  There is no magic solution to this issue, employers can’t control personal choices, but there are some things businesses can do.  Read on!

That’s it. We hope you enjoy this edition of Business Matters.  Previous editions can be viewed here on our website.

May you enjoy the upcoming holiday season and have some great times with family, friends and co-workers.

Best regards,

Jim

JIM M. SMITH CHARTERED ACCOUNTANT INC.

Business Matters October 2015

Read the entire issue of Business Matters.

Please see the above link to the October edition of Business Matters. Some interesting and very relevant material in the articles.

It seems scams of all different types are very common these days. The first article concerns fraud prevention specifically the telephone call or email from a “pretend” CRA agent. We have had several calls from clients regarding this scam. CRA DOES NOT EMAIL TAXPAYERS. Never respond to an email supposedly from CRA. If you receive a phone call that is suspicious, hang up. If the call seems legitimate do not engage in a conversation. Request the CRA agent to communicate in writing his/her request. Requests that are received in writing should be forwarded to our office for review before responding.

The MONEY SAVER article discusses tracking expenses by vehicle and is geared specifically towards trucking companies BUT the principals discussed could be applied to any large piece of equipment. A very good discussion about capturing all costs when doing your analysis. Always remember one of the golden business rules - know thy costs!

Although I’m sure that staff occasionally think that I am quite hard of hearing, our workplace is not very noisy. What about yours? If necessary do you have a good Personal Protection Equipment program in place? Everyone wants to ensure that staff work in a safe environment. Read on.

Although the TAXATION article is geared towards individuals who are making donations it is also very relevant for charitable organizations because it discusses gifts in kind and proper receipting procedures. I think most of us have some sort of personal connection or personal knowledge of the charities we support but even so this article is still worth the read.

That’s it!

The fall weather has been super so far. Let’s remember to get out and enjoy it. Any Blue Jays fans out there?

HAPPY THANKSGIVING! Have a great long weekend!

JIM M. SMITH CHARTERED ACCOUNTANT INC.

August edition of Business Matters

Read the entire issue of Business Matters. 

The management article discusses staff burnout -- recognizing the signs and the stress that results. There is no doubt that many businesses suffer significant losses because of burnout. How do you, as an owner, effectively manage staff that are stressed? Read on! 

The taxation article is all about medical and moving expenses. Claimable medical expenses do vary by province. For example massage therapy is not a claimable medical expense in Manitoba. The article provides a good overview of amounts that qualify as moving expenses. There is an extensive list -- remember to keep receipts. Canada Revenue Agency does review almost every moving expense claim we file. 

I really like the "tone" of the management article entitled "A Joint Commitment". The article has the premise that "Any business is a joint enterprise between its employer and its employees". This article is primarily about employment contracts. Something to think about for your business!

The term virtual office has been around for many years. On paper the concept has a lot of appeal, but as the article points out, it is suitable only for certain types of businesses. Virtual offices can provide cost savings and professional "front desk" services without having to hire staff. It is quite possible that the use of virtual offices will increase as technology improves and the way that clients expect to receive services changes. 

We hope that you have enjoyed summer so far and that you are experiencing success both with your business and on a personal level!

- Jim M. Smith, C.A.