RBC Blog

I am pleased to provide a variety of resources on accounting, taxation and other related subjects that I hope will be helpful to both individuals and businesses. Browse through the Quick Tools Resource menu at the right for a host of information. Have a question that isn’t answered here? We can help. Simply contact me by email or give me a call at 604-767-6785. I would be happy to meet with you for a free, no-obligation consultation.

The "New Norms"

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2020 COVID19 has forced the world to change at gun point. It is the new beginning and an end to many on our way of life. Going through the predictable motion of life has come to a cross-road to all. We fear for the unknown virus that can ambush without notice. Certain industry will rise and others fall. Companies and employees who adjust to the “New Norms” will survive. We have seen white-collar staff and professionals, organizational meetings, schools and classrooms, entrainment TV shows, religious services starting to operate remotely. Social distancing is becoming the norm without losing human contact. In a matter of time, businesses will come to the realization that they do not need lots of office space. On the greater good; this result in less traveling, less pollution and the earth are getting cleaner. Most importantly, it saves cost to the employer and employees. Existing technology make this possible.

What will be the “New Norms” moving forward? Those who worked from home during COVID19 can expect to work from home. Be it be full or part time varies according to industries and companies. Demand for office spaces will decline while industrial spaces and medical labs demand will remain because humans are needed there. Companies will downsize on office spaces to save cost while having white-collar employees work from home. Meeting remotely via apps like Zoom will become the norms. For human gatherings, part time bigger meeting spaces will likely see increase demand.

Where do these leave businesses on financial reporting?
For companies who are currently using cloud technology for their accounting, the transition is much less challenging for employees to work from home. New structure of cloud workflow, communication and information sharing will be in the future. However, those who are still using desktop, they will undergo a period of adjustments or metamorphosis. Change is in the future.

In urban city like Vancouver, office space rent at $15-$45 per square feet depending of office class B, A, AA, AAA. That works out to an average of $250 per month for a 100 sf space for one employee to work comfortably. For $250/month, remote bookkeepers can possibly prepare financials for an average $150,000 yearly revenue company.
The advantages of outsourcing bookkeeping are many to count. One of them is one less employee to manage, one less regulatory payroll obligation and best of all it is scalable. Meaning, you can pay more or less depending on your business output.

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COVID-19 Federal Government help for small businesses.

Q. Can I qualify for Canada Emergency Response Benefit (CERB) even when I do not qualify for EI?
A. Yes. The income of at least $5,000 may be from any or a combination of the following sources: employment; self-employment; maternity and parental benefits under the Employment Insurance program

Q. What Small Business help are available from the Federal Government?
A. There are currently two access to credit available for small businesses. First. Business Credit Availability Program (BCAP). Second. Canada Emergency Business Account. Interest free loan of up to $40,000 for small business with a minimum payroll $20,000 during 2019. You are strongly encouraged to approach your bank to apply for these loan.

Please visit https://www.canada.ca/en/department-finance/economic-response-plan.html

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What info does my CPA needs

Preparing small business taxes can be daunting task. So, hiring Tax Accountant can help save time and create peace of mind.  Before you head up to your Tax CPA, here are a list of must haves for your Tax Accountant to file your small business taxes. 

Unless you are a regular client, your Tax Accountant will need

Personal Information: If you are a sole-proprietor or partnership, you will need to provide your basic information, including legal name, current address and social security number (SIN) and date of birth (DOB).  

Business information: If you are an incorporation, you will need to provide copy of business number, Certificate of incorporation. 

Previous Year's Tax Return: This helps them get a better understanding of your business and gives quick information about the deductions your company has (or hasn't) been taking. 

Financial Business Report: At minimum, this includes Income Statement and Balance Sheet.  To speed up the process, do provide accounting access to your Tax Accountant to view your books in the cloud like QBO. 

Other Report: Asset, Loan, Deductible expenses - home office, mileage log, travel, donation, Payroll report, Closing Inventory count, other report. 

 

 

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Disability Tax Credit & Diabetes

Are you or your child living with Type 1 Diabetes?  You may qualify for a disability tax credit when you file your taxes.  Check out the Diabetes Advocacy website to learn how to qualify for this tax credit.   If you qualify for prior years we can amend your tax returns to get you tax refunds.  If you think you may qualify please take action right away because Canada Revenue could change the rules to qualify at any time.  There are also other conditions that are eligible for the Disability Tax Credit.  Check out the Canada Revenue website or speak to a team member for more details.

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