We understand some topics may seem more complex than others when talking about our business. Find here the answers to our most frequently asked questions.
How long is it going to take?
Services can be done quickly if all back up documents are submitted and organized and submitted well before your deadlines. It’s human nature to put complicated things off so everyone wants their work completed closer to the deadlines; meaning that late submissions take longer due the volume of work. Our routines entail, gathering records, tax planning, filling out and submitting the return. Complications can be a possibility, which enforces more time and risks.
Action item: Organize and submit your records early.
Why is it so expensive?
In short – because it’s worth it.
Time plays a huge factor in completing services accurately; checking, processing and asking questions are time consuming and this will be reflected on your accounting bill.
If we receive all documents and information in perfect format, we can easily complete your work quickly and effectively. Messy, incomplete information increases our time and your bill.
Customers expect us to act professionally – that is to keep up to date on professional and technical standards, ensure we are compliant with current tax legislation, encourage our clients to file on time and pay on time, all the while ensuring that communications are appropriate to the client’s needs.
CPAs have a minimum of an undergraduate degree, have completed a prescribed study program, require passing multiple exams to certify that they can provide the highest quality account services to the public. CPAs are highly skilled and entrusted with significant responsibilities.
What is bookkeeping?
Bookkeeping is a process of recording and organizing your business transactions that have occurred in the course of the business. It is a critical component of accounting, without it, companies would be unaware of their financial position and internal transactions.
For a beginners guide to bookkeeping, read here
How long have you been in business?
We have been providing accounting and tax services since 2008.
How do I file HST?
You are required to complete a Goods and Services Tax/Harmonized Sales (GST/HST) Return (GST62). The form can be filed electronically or in person at a participating financial institution. If you require assistance with filing your HST return, our team can assist you.
What does a bookkeeper do?
Bookkeepers are responsible for providing accurate, up-to-date financial information for a business. Data entry, bank reconciliations, and monthly reports are the three primary tasks. Some other duties are creating and sending invoices, ensuring that invoices from suppliers are accurate and paid in a timely manner.
For a beginners guide to bookkeeping, read here
What does an accountant do?
Accountants use numbers and financial statements to paint a picture of the health of a company, organization, or individual. Accountants analyze profits and losses and provide information to business owners to understand how their company is performing over time.
For more about the differences between Accountants and Bookkeepers, click here.
Payroll vs Dividend
Payroll:
Payments become a corporation expense, and t4s are issued. The expense reduces the corporation taxable income, thereby lowering the company tax liability.
Dividend:
Payments to shareholders of a corporation that are paid from the after tax earnings of the company, its considered an investment income. It is not a business expense, and thus does not reduce the amount of corporate taxes paid. Dividends impose a lower personal tax liability than payroll because they come with a dividend tax credit.
Read here the entire blog post for more information.
When are payroll remittances due?
Remittance schedules are determined by your company’s average monthly withholding amount. This is the total of all payroll deductions paid to the CRA during the calendar year, averaged monthly.
The CRA classifies your business as a new, regular, accelerated, or quarterly remitter based on a two-year average monthly withholding amount.
New Remitter:
Remittance payments for new employers are due on the 15th day of the month following the month in which deductions were made.
Regular Remitter:
New employers with less than two years of average monthly withholding amounts or with a two-year history of withholding amount of less than $25,000; payments are due on the 15th day of the month following the month in which deductions were made.
Accelerated Remitter -Threshold 1:
Employers with a two year average monthly withholding amount history between $25,000 and $99,999.99. Payments are due on the 25th day of the same month for payroll processed during the first 15 days. Deductions for payroll processed after the 16th day is due by the 10th day of the next month.
Accelerated Remitter -Threshold :
Two years of average monthly withholding amount history greater than $100,000. Payments are due by the 3rd working day, following the 1st-7th, 8th-14th, 15th-21st and 22nd-last day of the month. To put it another way, no later than the third business day following the week in which payroll was processed.
Quarterly Remitter:
Small businesses with an average monthly withholding amount of less than $3,000 in the preceding 2 years, or with an impeccable record with the CRA. Payments are due by April 15th, July 15th, October 15, and January 15th for payroll processed in the previous quarter. Quarterly status is reviewed annually.
When is my Corporate Tax Return due?
Corporate tax returns are due no later than six months after the end of each tax year. Corporations have to pay their taxes in installments, either monthly or quarterly.
Have a question we didn’t answer? Set up a consultation with us and let us know your doubts.