March 2010

In This Issue
HST - Transitional Rules
Next issue - HST continued - Self assessment
bookkeeping position available
about e-ccounting

e-ccounting continues to be a free monthly newsletter focusing on accounting tips and solutions.  Our mission is to educate our clients, students and readers by offering these resources in response to your ongoing questions. 

It is our objective to gather information and provide easy access for your current and future needs. Back-issues are available on our web site at www.accountrain.com
This newsletter is not intended to answer complex questions.  As well, each situation is different, you therefore, may want to discuss your specific situation with a professional accountant or government agency.

Advertising Corner

accountrain currently has an opening for an experienced 
bookkeeper.  The ad and application will be posted on our website the week of April 5th.  Or for advanced consideration, contact us at the email address below. 
This could be a link to you website, inquire now ~

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p:  613-789-2623
f:  613-789-2380
c:  613-797-2520
 e:  accountrain@magma.ca
As promised, the next few issues of e-ccounting will focus on different topics highlighting the upcoming HST (Harmonized Sales Tax). 
Transition Dates
There are several key dates to consider as we transition into incorporating the new HST.  The upcoming dates are:
  • May  1, 2010 ~  In some cases, the vendor / supplier must collect HST if the invoice is paid or payable after May 1st, with delivery of the goods or services taking place after July 1st .
  • July  1, 2010 ~  Implementation of HST
  • Oct 31, 2010 ~  Finalizing existing RST (PST)
The dates are confusing, therefore as a guide, keep in mind that HST will NOT apply if goods or services are delivered or ownership is transferred before July 1st.   Of course there are always exceptions to the rules, so when in doubt, consult with a specialist! 
HST ~ Transition Rules
The best way to understand the transition rules is to break it down into different categories. 
That said, it would be impossible to define and provide examples for each, the purpose of this is therefore to highlight the categories that apply to your business.  Based on the items below, you should now be able to ask the right questions to be prepared for HST that you will be charging as well as HST you can expect to pay.
  •  Tangible Personal Property , ie auto, office supplies
  • Subscriptions
  • Services, ie. accounting, legal, etc. 
  • Miscellaneous, ie funeral arrangements
  • Leases & Licenses, ie car, equipment
  • Intangible Personal Property
  • Memberships & Admissions
  • Real Property, not residential housing.
 To highlight, the transitions dates and rules for the following are:
  •  Sale of Goods, focus on the delivery and ownership. 
  • For most Services, focus on when services are performed.  
  • For Intangible personal property, consideration is when it's paid and due after June 2010.
  • For Licenses, including a portion of the license, consideration depends on if the period is after June 2010. 
Unfortunately, almost each category has special rules and prepayment considerations, again it is important to review each scenario with a tax specialist or call the CRA at 1-800-959-5525.
Next month's HST topic  ~  Self Assessment 
On February 25, 2010 the Department of Finance released changes to the proposed HST in regards to "supply rules" (an upcoming topic). 
At the same time Finance also expanded self-assessment and rebate rules relating to the provincial component of the HST. 
e-ccounting will define Self Assessment in the April issue, as well as supply a couple of examples.
about accountrain
accountrain simplifies the client / accountant relationship by offering a unique combination of knowledge and people-skills to solve all your accounting needs as we specialize in the how's and why's of accounting. 
accountrain handles all your day to day bookkeeping and accounting needs whether it's weekly, monthly, quarterly, or on an as per needed basis.  
accountrain also offers:
  •   Training ~ one-on-one or classroom setting. 
  •   Workshops, see our website for more details.
  •   Apprentice program for beginner bookkeepers.
  •   Mentorship program for bookkeepers wanting to start their own business.
For more information on bookkeeping, workshops, programs and to find out if accountrain is the right accounting team for you, contact us by phone or email.

Save 25%
accountrain would like to offer it's loyal readers a 25% discount for any phone appointments.  Phone appointments must be a minimum of 1/2 hour, you will also incur any long distance charges, when applicable.
Appointment times will be established by email, at which time the intended topic will also be discussed.

For more information, contact Sandy at accountrain@magma.ca

Offer is in effect until the next issue of e-ccounting, February 23, 2010. 
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