e-ccounting is a 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.
available on the accountrain website.
These tips are not complete answers to complex
questions. We therefore recommend, when in doubt,
contact the professionals or government
accountrain simplifies the client /
accountrain offers a unique
combination of knowledge and people-skills to solve
all your accounting needs.
accountrain specializes in the how's
and why's of accounting.
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Sandy's Question Corner
Do you have an accounting question? Send it to us at
- Choosing accounting help
"I don't worry about taxes, I've got people".
Does that sound familiar?
It should, it's from a current H&R Block Commercial.
Can it be that easy?
Yes, it can, if you have the right people!
Your accounting needs will depend on the size of your
company, your industry and other factors, ie are you
incorporated, a sole proprietor or partnership.
So, what are the options when choosing accounting
There are many people who can assist with the
bookkeeping and accounting functions of a firm.
Let's start by explaining the difference between the
tasks an accountant would have versus a bookkeeper.
A bookkeeper is exactly that, someone who will keep
the books, maintain the accounting records. In other
words, handle the day to day functions, which include:
- Process vendor bills and issue cheques.
- Create customer invoices and apply deposits.
- Bank reconciliations.
- Handle government payments, ie. GST.
- Maintain filing.
Depending on the size of the company, you may need
a controller or supervisor to oversee the bookkeeper
(s) and accounting department. This will be someone
with more experience and perhaps a (CGA or CMA)
Large firms may have a CA on staff acting as the VP of
Finance or CFO (Chief Financial Officer).
External CA's are also responsible for finalizing
corporate year-ends, by providing one of the following:
- A notice to reader
- A review or
- An Audit
On occassion accountrain has been
asked to provide accounting questions to ask at an
But, how will you know if the
answers are correct?
When hiring accounting staff, have someone with
a strong accounting background assist with the entire
hiring process including the interview itself, as well as
testing on the actual accounting software.
Believe it or not, we have requests from new hires in
dire need of "emergency" training on accounting
software packages. They have accepted a
job and are not "up to speed" on the necessary
software, as indicated on their resume!
|Did You Know ?
Accounting mistakes can be very time-consuming to
untangle. Outsourcing can save you money in the
To avoid wasting time and money, ensure
all accounting functions are on track. Did you know,
you can hire a professional for the following, to:
- Review your accounting software, policies and
- Ensure the daily tasks are done correctly and in a
- Train processes and software.
- Assist with government reporting, as well as other
- Finalize month-end, quarter-end and year-end.
The most common accounting task to outsource is
payroll. There are many reputable payroll services
available . The cost per pay is minimal and the
service does all the work including:
- CPP, EI and tax caculations
- Monthly source deduction remittance to CRA
- ROE upon termination of an employee
- T4's and T4 Summary
||For more Did You Knows?
CA is the acronym for Chartered Accountant. In
Canada this is the only accounting professional that
has the authority to sign an audited financial
statement. CA's are responsible for the final figures
and therefore follow the guidelines of the CICA
Handbook closely. Although a CA can perform
bookkeeping and other accounting tasks, they have
many specialties, ie Tax Consulting & Preparation,
including Corporate and US, Auditing, Estate &
Succession Planning, Business Valuations, Forensic
and Investigative Accounting, Cash Flow
Management, Business Planning, etc. and should
therefore be used as part of the accounting team
focusing on their specialties while leaving the other
bookkeeping and accounting tasks for intermediate
level accounting staff and / or consultants.
CGA - acronym for Certified General Accountant
CMA - acronym for Certified Management Accountant
(formerly RIA - acronym for Registered Industrial
The CGA and CMA have become more and more
similar over the years. They are both designations
usually sought after while working in an accounting
position. Individuals with either designation are
capable of a variety of accounting functions depending
on what level they have achieved in the program as
well as the experience they have acquired.
When hiring anyone to handle your accounting tasks,
although a designation is an asset, also ensure they
are experienced for the task at hand and check
references whenever possible.
For more definitions ...
Take advantage of the roles of each, hense "have an
accounting team". Let your employees handle the
daily rountines and entries, if they are not fully
qualified have someone who is, oversee there
Have external specialists do the taxes, as well as
assist with investing, forecasting and working towards
the future goals of the company.
Referrals are always best. Just because someone
has a designation, it doesn't mean they've got the
experience to back it up. The best candidate is
someone with the combination of both.
|Next Issue - It's Tax Time Again !
Tax time shouldn't make you nervous! How can you
best deal with this dreadful time of year?
In the next issue we will:
- Define what each business type is
- Establish deadlines.
- Offer suggestions on saving money and getting