Should you pay your personal expenses from your business?

Should you Pay your Personal Expenses from your Business?

Do you ever use your business bank account or credit card to pay personal expenses? Perhaps you are out doing errands for your business and pick up personal items at the same time. Rather than asking the sales clerk to process two transactions, you charge all the items to your business credit card. Is this Ok? Yes, but it’s a bad idea! CAN I USE MONEY THAT COMES INTO MY BUSINESS FOR PERSONAL ITEMS? The …

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Important Changes Ahead of us for Tax Amnesty Programs

Important Changes Ahead for U.S. Tax Amnesty Programs

Over the past several years, the IRS has implemented various amnesty programs aimed at reducing the number of delinquent US tax filers. Earlier this year, the IRS announced that one of these programs – the Offshore Voluntary Disclosure Program (OVDP) – would end on September 28, 2018. More than 56,000 taxpayers have taken advantage of this program under which the IRS has collected more than $11.1 Billion in back taxes, interest and penalties. In the …

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Financial Statement Report for my Business

What is the Right Type of Financial Statement Report for my Business?

There are three types of financial statement reports that can be issued for a set of financial statements: Notice to Reader, Independent Practitioner’s Review Engagement Report and Independent Auditors’ Report. The type of report you should select depends not only on what you need, but also on what the other people who rely on your financial statements will require.  The users of your financial statements can include the bank, shareholders who do not take an active role in the business or …

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Internal Controls

Internal Controls even the Smallest Business can Implement

We’ve all heard the term “internal control.” Simply put, it involves anything that controls risks to a company, by ensuring reliable financial reporting, and compliance with laws, regulations and policies. Implementing suitable internal controls in larger companies with a large management team is seldom an issue. For smaller companies with only a few staff it can be far more challenging, if not almost impossible. So what can these companies do to reduce the opportunities for …

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Reasonable Compensation

Reasonable Compensation

One of the most subjective and discretionary expenses for many small closely held businesses or professional practices is owner compensation. Reasonable compensation is a key assumption in the valuation model as it can have the most impact on the profits of the closely held business. This is due to the fact that compensation recorded in the Company’s books and records and presented in the financial statements is not always at market rates and it is …

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When do you Charge HST

When do you Charge HST

Whether you are self-employed or your business is incorporated, it is your responsibility to ensure you register and collect HST when you meet certain conditions set out by the Canada Revenue Agency (CRA). Many small business owners are not aware that whether you are self-employed or incorporated, if your business earns greater than $30,000 in world-wide taxable supplies over any four consecutive calendar quarters you must register for HST, and collect HST, and remit it …

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Importance of a Buy/Sell Agreement

Importance of a ShareHolder Buy/Sell Agreement

Business partners set up shop with the best of intentions. But no matter how strong a personal or professional relationship is at the outset, shareholder conflicts and other events may occur that can affect the continuity of the business operations. A buy/sell clause in the shareholder agreement that is understood by all the parties is an important tool that provides a mechanism and process to ensure an orderly transfer and the continuity of the business …

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