Four Tips For Managing Accounts Payable And Receivable

Accounts receivable and accounts payable are the two main factors that affect your business cash flows. Managing both is an important skill that needs to be mastered for an effective financial stability. It also helps boost the overall performance of the company and avoid cash problems. Properly tracking accounts receivable and payable involve the creation of invoice on time, delivering the receipts, tracking the shipping orders and maintaining financial transactions. Here are a few tips that will help you in managing accounts payable and receivable in an effective and efficient manner.

1. Organize Your Transactions

Be organized and send out invoices immediately after the transaction has been completed. For a regular delivery of goods or when goods are taken on credit, send the invoices when they are due. It may be difficult to remember all the transactions for which payments are expected in future. Hence, make sure you keep a proper record system and organize all your transactions. See to it that your accountant effectively organizes all your transactions as your books contain valuable information and prevent you from forgetting or making incorrect invoices.

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Six QuickBooks Tips For Beginners

QuickBooks are for small and medium-sized accounting businesses which help them to maintain basic accounting transactions. It offers on-premises as well as cloud-based accounting application system which records business payments, pay bills, and payroll systems. If you are a beginner, here are a few tips on how to use QuickBooks.

1. Backup your Files Regularly

QuickBooks deals with your financial files, reports, and customer information. It is of utmost importance that you always save your work like you would do for any other application such as Word Documents. Backing up your files regularly will help you retain crucial data in case you delete or lose your files due to some reason.

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Are your Books Balanced?

Bookkeeping and accounting may not be daunting but are an essential part of business and financial management. A balance sheet is one of the financial statements that help entrepreneurs evaluate their business’s financial health. However, many business owners, especially those with a traditional accounting system in place, face difficulties in balancing their books. Balanced books are vital to gain a clear picture of your business and financial status. It also acts as a strong foundation for vital strategic decisions. While it can be tiresome, there are ways to ensure your books are always balanced. Here are some tips to help you balance your books.

Keep Your Business and Personal Accounts Separate

Mixing business and personal accounts is a common mistake that hinders balancing books. The mixture makes accounting difficult as you have to weed out business related invoices, bills, receipts and payments before recording and balancing. This leads to errors disallowing statements to tally. Having separate accounts is a sign of better organization, making it easier for accounting and balancing your books.

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5 Common Accounting Mistakes

Finance is the center of any business. Businesses revolve around earning and managing its finances. Therefore, a sound accounting system and practice are vital for the success of your business. As a business owner, your biggest constraint is time. With several things on your plate, overseeing accounting functions becomes difficult. While you may have a software in place to make things easier, accounting mistakes might still occur. Accounting mistakes can have a great impact on your growth and reputation, as well as, other business operations. To avoid this, here are 5 common accounting mistakes that every business owner must be aware of.

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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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Salary vs. Dividends: Dilemma for Small Business Owners

How you would pay yourself as a small business owner is a question that requires contemplation. You can pay yourself a salary, or can receive dividends, or a combination of both. However, the decision on salary vs dividend is influenced by a variety of factors such as personal and corporate tax structure. Considering this, each way of paying yourself comes with pros and cons. Moreover, in almost all cases there is a discrepancy of a percentage or two that can work in your favor or against you, and this potentially influences your decision on how to compensate yourself. To provide you with clarity on the subject here is a comparison of paying yourself in salary vs dividend.

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How Can Your Business Manage Checks?

Many small businesses deal with the hassle of inflow and outflow of checks on a daily basis. As a business owner, you are involved in several aspects of business operations. Signing and depositing checks seem like a daunting task in your busy schedule. In a fast-paced era, a traditional approach for check management is time-consuming. Investing in technology and keeping up with safety measure makes for a more efficient way of managing checks. Here are a few accounting tips for small business that allow better check management.

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4 Reasons To Outsource Your Bookkeeping

Are you able to manage your accounts effectively? Are you aware of all the latest tax policies and accounting standards? If the answer to both those questions is no, then no need to panic. You would rather want to focus on your core business activity than keep up with the latest updates on manage your business accounts. Rather, it would benefit you if you outsourced your bookkeeping to a bookkeeping service in Alberta. Apart from this, here are a few more benefits of outsourcing bookkeeping services.

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Why Should You Have A Christmas Party?

Your employees would be eagerly waiting for some celebration during the holiday season. For small or medium businesses, parties can indeed be a costly affair. So even if you plan an office party, you might cut down on certain things and minimize the cost. However, this may not be a good idea if your party lacks certain elements (the ones that cost more than others like some fine delicacy or drinks, live DJ). Such parties tend to be boring and it would’ve been much better if you didn’t have one instead. In fact, having a good party has many benefits for the organization. Since Christmas is near, you can have a Christmas party for your employees. Here are some of the benefits why you should celebrate Christmas at the office.

Enhances Employee Engagement

One of the reasons to have a Christmas celebration at the office is because it enhances the employee engagement. Parties act as an ice-breaker and employees socialize with each other. Moreover, as people begin to talk to each other it helps to develop a good rapport among the employees. This leads to increasing the morale of the employees. So having a Christmas party has some long-term benefits for your organization.

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What is Break-Even Analysis?

Every business involved in the manufacturing or production of goods should be aware of the break even analysis. With the help of the break even analysis formula, you are able to calculate your break-even point. It is the point at which the total expense equals the total revenue. So, there is no net profit earned or any loss incurred by the business at the break-even point. Let’s take a look at the break even analysis in more detail.

Break Even Analysis

The break even analysis can be presented in form of the number of units or the amount of revenue earned. For any company, there are two types of costs-fixed cost and variable cost. The fixed cost remains fixed for a considerable period of time. As and when the level of production reaches beyond the optimal limit, the fixed would increase. This cost is incurred by the firm even when they are no units produced. Examples include salary to the supervisor, rent, power bills. The firm is liable to pay for these costs irrespective of the level of units produced or not.

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How To Save Taxes On Your Home?

Taxes can indeed take a large chunk of your profits. Your profits minus the tax may leave you with very little money for yourself. This is, even more, a worrying sign for self-employed people who operate from their home. However, with the help of home office tax deduction, you can get home business tax saving. Thus, you are able to reduce your tax amount. But, how do you reduce it? An accounting assistance in Edmonton will be able to help you to get the home office tax deduction. Some of the ways to get home business tax saving are mentioned as follows.

Deductible Expenses

When you operate from your home, you are allowed to deduct some of the expenses such as a part of the electricity cost, heating, and maintenance. Some of the expenses that would not be deductible include mortgage interest, home insurance, capital cost allowance and property taxes. So if you have missed out on the deductible expenses before, make sure you add them to the deductible taxable amount to get the exemptions


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Remitting Payroll Deductions

If you have a payroll account, then you should be aware of the payroll deductions. As an employer, you need to have the payroll remittance schedule prepared. The Canada Pension Plan (CPP), the Employment Insurance (EI) premiums and the income tax deducted from your employees’ salary should be remitted together with your CPP contributions and EI premiums. Let’s take a look at remitting payroll deductions in detail.

Remittance

The remittances are deemed to be made on the day when it is received by the Receiver General. Therefore, as an employer it is critical to choose the right method of remittance that is suitable for you as per your due date. Your remittance form and deductions should be sent to the Canada Revenue Agency (CRA) on or before the remittance due date.


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Variable Expense Vs Fixed Expense

In order to increase the profitability of your firm, many factors come into play. Accounting services in Edmonton may tell you that you can increase profitability by improving your sales, raising the prices of your goods and services or by reducing your expenses. A company does not have much control over increasing its sales and prices as much as, it has on lowering its expenses. If you want to increase your profits by reducing expenses, then you should have some knowledge about expenses. There are two types of expenses, variable expenses and fixed expenses. The difference between variable expense and fixed expense is described in detail below.

Meaning

The expenses which vary with a change in the number of units produced are known as variable expenses. Examples of variable expenses include the cost of raw materials, wages paid to labor, packaging of products and others. These expenses are incurred only when you start producing the units.


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Best Accounting Tips To Avoid Cash Flow Mistakes

Every business firm should have a satisfactory cash flow, balance in their account. You never know when a need can arise wherein you require quick money. If you don't have sufficient cash in hand, then it can harm your reputation or cost you some cash. Here specify some accounting tips should help you avoid bookkeeping mistakes when it comes to cash flows. If you face cash flow issues regularly, then it is ideal to consult an expert accounting firm for help.

How to Pay Yourself as a Canadian Small Business Owner

As an owner, you have a lot of responsibilities. One of the choices you need to make when you start your business is how do you pay yourself. There are three basic options, each with their advantages and disadvantages, first salary, second dividend and third dividend vs. salary. Here you get entrepreneur tips, will help you understand the most ideal approach to pay yourself. However, in monetary related matters involving tax implications, it is best to get professional consultancy. Get accurate bookkeeping help by contacting ATS Accounting.

Should You Outsource Your Bookkeeping Service?

All businesses are looking for new approaches to cut expenses and expand their profit margin. Accounting for small business especially can be a costly affair. Have you ever considered outsourcing your accounting service? Let's take a look at why you should outsource your accounting service. In addition to the advantages listed here, hiring an expert trained in giving accounting advice and bookkeeping help for small businesses can further optimize your performance. Contact ATS Accounting, and equip yourself with specialized accounting services. For more information, visit our website http://www.atsaccountinginc.com or contact us at +(587) 410-6098http://www.atsaccountinginc.com

Best Borrowing Practice for Business

Your relationship with your banker is like your manager. Your keep upon good terms with him and great times lie ahead of you. You lose his trust and the downfall starts. The best time to borrow money is when you don’t needs it. The best time to borrow money is is when you don’t need it. It maintains a good impact on the bank as your finances are intact. This is exactly when you should make your turn for the next stage of borrowings. Your chances of getting your business loan approved are much higher, and you will be in a superior position to negotiate terms since you don't generally require the funds right then. The worst time to negotiate a new loan is a week before you absolutely needs the funds. As business, you always require access to a prepared cash flow, and this is the best approach to ensure you have it.

Things To Be Aware Of If You're Audited

The Canada Revenue Agency, or CRA, regularly conducts audits across the country. If you have quite recently found out that your business will be audited, there is no reason to panic. An audit is a standard procedure for CRA. The reason for the audit might be worrisome, in any case, unless you have really fudged your books or conducted an illegal activity, there is no genuine reason to panic. CRA audits are standard procedures, and it is the government's procedure of ensuring that organizations are staying within compliance. Here are seven things you should to know about. For more information, visit our website http://www.atsaccountinginc.com/ or contact us at (587) 410-6098.

Should Your Corporation’s Shareholder be a Family Trust or a Holding Company

If you are not choosing a family trust, you are choosing for a holding company. A holding company owns the shares of another company and controls that company. A holding company is suited to manage shareholders and the company, and does not deliver goods or services itself. A holding company also offers tax advantages. This allows shareholders to pull back assets at the right time and save tax; for example withdrawing after retirement to get to a lower tax bracket. Everything of the dividends can be reinvested by the holding company.

Benefits of Hiring The Top Accounting Firms in Edmonton

 

CRA has the right to pursue directors and previous directors personally for specific categories of corporate tax debts arising during the time they were directors. The most widely recognized are GST/HST and payroll source deductions. It is the obligation of every director to comply with his tax obligations to avoid being hauled by the CRA. ATS Accounting, with its skill in tax planning, accounting and business bookkeeping, gives services to defend the interests of people and small organizations in Edmonton and different other cities in Alberta that aren't equipped to put a full-time bookkeeper on their payroll.