Tax For The Self-Employed: How Much Do You Know?

Did you know that almost 3 million of Canada’s population is self-employed? Whether it is online or a physical store, those who engage in a business relationship with clients who pay are self-employed. Compared to those who work for a company, individuals who are self-employed are in charge of when what and how the payer is going to pay for the goods or services that they offer. Such terms of business may involve incorporation while there are others who choose to be sole proprietors of their business.

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Business Closure: Three Reasons Why A Business Fails

There are a more than a handful of people who go into business every year. There are a significant number of start-up businesses that are launched each year too. Sadly, more than half of these start-up businesses close only after a few years of operation. Start-up businesses help the economy in more ways than one. They push the boundaries of technology and innovation. They can provide products and services that big businesses rarely go into. Small businesses can create a market for what they offer, and that’s how they find success.

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How does a Holding Company Work?

When investing in securities issued by corporations, you may have come across a term called a holding company. While you might wonder what it is, you would be surprised to know that most successful companies in the world are holding companies. A holding company is a parent corporation that holds various businesses under it. Such a company does not do anything by itself, but instead, it is designed to hold investments in the form of stocks, bonds, mutual funds, gold, silver, real estate, trademark, patents, licenses, copyrights, or anything of value. A holding company holds enough investment in other entities to manage and control them.

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Four Types Of Payroll Systems

As an entrepreneur, when you run a business, there are various aspects you need to look into. From keeping track of business functions to keeping your employees happy, it takes a lot to maintain the smooth running of your business. One factor which highly affects the happiness of your employees is how well you manage their payroll. Apart from maintaining a basic record of the salary given to your employees, there is a comprehensive system that each business needs to have in place for a well-managed payroll. To help you know more about it, here are some common types of payroll systems listed by experts of payroll services in Edmonton.

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Find The Right Accountant For Your Business

Hiring an accountant for your business is no longer just about finding someone good at number-crunching and getting the maximum returns come tax-filing time. A good one can save you time and help your business grow; a bad one could cost you much needed money. Yet with thousands to choose from, it can be a daunting call to make. So when you have to choose an accountant for taxes, what are the questions every business owner should ask so as to make the most informed choice?

1) Get Referrals

Most of the experts say that the most of the businessmen get 90 per cent of their clients through word of mouth. Word of mouth plays a crucial role when you choose an accountant for your small business.

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How To Calculate Straight-line Depreciation

Depreciation is an accounting principle defined as the reduction of recorded cost of any tangible or fixed asset over a period in a systematic manner until the value of the asset decreases to zero or becomes negligible. A tangible asset can be anything that a business might utilize for their daily operations. Some of the common tangible or fixed assets include land, buildings, furniture, office equipment, machinery, etc. There are three methods of calculating depreciation over a period that all public accounting firms in Edmonton use - straight-line method, unit of production method and double-declining balance method. In this article, we will put light on the first method.

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6 Payroll Mistakes You Are Probably Making

The process of payroll can be defined as the distribution and calculation of salary, wages, and taxes for your employees. When you run a business, you are responsible for making timely salary payments to your employees. In Canada, the same is not possible without complying with the requirements of the Canada Revenue Agency (CRA). Also, by managing your payroll without the help of professional payroll services in Edmonton can cause you to make some mistake. The common payroll mistakes you may probably make include the following.

Misclassification of Employees

When you have a business and manage a payroll system, you are entitled to a payroll tax based on the number of employees you are paying wages or salaries. Often business owners make a mistake of classifying their employees as contractors instead of employees. Never make this mistake as the money paid to contractors is not taxable. This will eventually cost you more as you will have to pay the tax along with the penalty for misclassifying an employee as a contractor.

If you want more information about the payroll services in Edmonton, then contact ATS Accounting Inc. today.

Six Tips to Manage Your Startup's Cash Flow

The decision to start your own business is a big decision. You have to plan every aspect of your startup and manage your business finances. For a new entrepreneur, managing the cash flow properly can be a big worry.

Cash flow refers to the inflow and the outflow of money within your business. Managing cash flows is a big problem for startups. Here are a few tips to manage your cash flow.

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Pros and Cons of Doing Your Own Accounting

Many small business owners get confused whether they should manage bookkeeping on their own or seek help from public accounting firms Edmonton. If you are also one of them, here are a few pros and cons of doing your own accounting that can help you in making the right decision.

Pros of Doing Your Own Accounting

Save Money

While conducting your own accounting, you are saving the fees that you would’ve paid to the accountant. The cost of hiring an accountant can be saved and used for other business purposes.

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Basic Accounting Principles That Business Owners Should Be Aware Of

Accounting principles are the rules and guidelines which companies need to follow while reporting financial data. Business owners may not be able to handle their accounting because it’s easy to miscalculate the expenses and taxes owed. As a firm that offers Edmonton bookkeeping services, we find that accounting your business financial transactions is vital because:

1) Know your Company's Financial Health

You need to be aware of the expenses, returns, and profits of your company. It’s a crucial information required to make key business decisions.

2) Be Tax Compliant

The Canadian Revenue Agency requires you to pay your taxes. Failing to do so, or missing out on certain tax requirements will have consequences.


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What Should You Look For When Hiring A Professional Payroll Firm

Hiring a professional payroll firm offers numerous benefits as they save your time, take care of all the payroll efforts, and provide payroll compliance with taxes as well. Hence, many small businesses and startups are turning to hire payroll firms that provide several payroll services Edmonton. If you are also planning to hire a firm to ease your entire process, here are a few things that you should look for when hiring.


For more information about Payroll Services in Edmonton, contact ATS Accounting Inc.

Four Things You Need To Look For When Hiring A Public Accounting Firm

Public accounting firms Edmonton hire Certified Public Accountants (CPAs) who look after the accounting process, the finances of a company, the auditing, and the tax filing process. Several small businesses, startups, and public companies hire these professionals to look after their accounting and bookkeeping.

However, if you do not want wish to hire a professional accountant, then there are firms who provide accounting services. Choosing a reliable and certified accounting firm is very important to handle your business accounts accurately. If you are planning to hire a reliable public accounting firm, you must consider the following things.

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Small Business Accounting Edmonton: The Audit Preparation Checklist

Running a business and maintaining your financial accounts on a regular basis can be a difficult task. Doing your own accounting has its own pros and cons. With too many responsibilities in your hands, mistakes are bound to happen. Such mistakes create a problem for you during an annual audit. Here is an audit preparation checklist you should keep in mind when there’s an audit for your small business accounting Edmonton.

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Business Owners: How to Pay Yourself

It is good to have your own business. It gives you a sense of independence. It is good to be the boss. But what about your salary? You have put in a good amount of capital investment, and your business has started running. The question on your mind now is how to pay yourself. Accountants Edmonton recommends a few tips to help business owners to pay for themselves.

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Six Tips to Manage Your Startup's Cash Flow

The decision to start your own business is a big decision. You have to plan every aspect of your startup and manage your business finances. For a new entrepreneur, managing the cash flow properly can be a big worry.

Cash flow refers to the inflow and the outflow of money within your business. Managing cash flows is a big problem for startups. Here are a few tips to manage your cash flow.


Get more information at Edmonton Bookkeeping Services.

Why is Financial Accounting Important for your Business

There are multiple transactions that take place during the year therefore, it is important to have a record of those transactions. Financial accounting helps internal and external stakeholders make better business decisions. Without financial accounting, decision-making can have a negative impact on the company’s performance. Here’s why the importance of financial accounting cannot be neglected.

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Steps To Do Your Own Bookkeeping

 

Bookkeeping and keeping a track of all the incomes, revenues, and expenditures of your organization are an important part of every business. Bookkeeping Edmonton provides you the current financial position of your organization and plan for future business projects. If you are planning to start with bookkeeping by yourself, then here is a step-by-step bookkeeping process for you.

Step 1: Create an Organized Structure

Before getting started with bookkeeping, you first need to establish a well-defined structure. This structure must include the kind of system you will use for bookkeeping, say automating the process with the help of an accounting software or doing it manually with the help of spreadsheets. Once you have a system in place, make sure you follow the same system for bookkeeping in the future.

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The Basic Steps Of Capital Budgeting

Capital budgeting is a multi-step process that is used to determine if a particular business project or plan is worth the investing. It is a long-term planning for financing of a proposed project such as purchase of a new machinery or equipment, investing in new products or projects, etc. Capital budgeting projects are categorized as follows:

1. Replacement Projects for Maintaining Business - Projects for the maintenance and functioning of the existing business operations.
2. Replacement Projects for Reducing Cost - Projects for replacing equipment, products, services, or functioning that may require lesser resources and funds.

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Four Tax Saving Tips For Business Owners

Planning and preparing for tax payment well in advance can help you save both time and money. But, if you haven’t started preparing for the tax season, don’t fret. Experts from the top Edmonton accounting firms suggest the following tax saving tips for business owners.

 
Maintain Books of Account

 
Hire an accountant to maintain all your transactions in the accounting format. Maintaining books of account or bookkeeping can help you in keeping a track of all the income from different sources and the expenses of your organization. It will also help you to see where you can save taxes and claim returns wherever possible.

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Five Signs Your Business Needs A New Accountant

An accountant is one of the most important people in your organization. Apart from maintaining your financial transactions, you need an accountant for many other purposes. This may include filing your tax returns, systematic recording of books of account, assisting in making financial decisions, and looking after the accounts payable and receivables to name a few. However, if these simple routine operations are not done properly, then you should consider hiring a new accountant or outsourcing your accounting work to one of the professional accounting firms Edmonton. This is because a bad accountant will certainly create multiple problems and affect the smooth functioning of your organization. The following are some signs of a bad accountant and that you need to consider hiring a new one.

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