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.

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

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.

Get more information from Accounting Firms in Edmonton.

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.


Get more information from Accounting Firms in Edmonton.