Accounting Basics – for New & Small Businesses
This is a must for new business owners or existing businesses that are doing their own books
- Deciding who the players are: accountant, bookkeeper, lawyer, banker, etc.
- Incorporate versus sole proprietor (partnership)
- Choices for maintaining your books: spreadsheets versus popular software
- Bookkeeping tips, including the importance of the bank statements
- Review of common questions including:
- What you can expense with focus on home and auto?
- How to pay yourself – the power of “Due to Shareholder”
- Set-up: when to file for HST, etc. with CRA
- Shortcuts, tips and organizing all that paper!
Everything you wanted to know but didn’t know what to ask for new business owners, those responsible for payroll, HST and installments and owners afraid of a CRA audit
- 5 Ws and How! (focus on WHEN!):
- Payroll – CPP, EI, Source deductions
- HST (Quick Method vs Direct)
HST Audits – debunking myth
- Corporate / Personal tax installments
- Form 22 / Form 546 (ON)
- Red Flags
- EHT, WSIB (are you required?)
- Walking through the forms
What every business owner and board members need to know for a business plan and to make informed decisions
- Defining cash flow and why it’s important
- Knowing your fixed costs / Break-even point
- Understanding the “actual” bank balance
- Different planning metrics
- Timing for collecting AR (Receivables) and paying AP (Payables)
- How to track in your accounting system
Understanding Your Financial Statements from A-Z
It’s what you don’t know that will get you in trouble if you are business owner, board member or responsible committee member
- There are a lot of reports available using accounting software – what are the actual financial statements?
- Review the 5 key sections of the Financials
- Who’s interested in your reports and why?
- Why there’s more to the Income Statement than just the “bottom line”
- How the Income Statement flows into the Balance Sheet
- What’s so important about the Balance Sheet anyway, a going concern!
- Why the bottom line is NOT your bank balance (timing, EBITA)
- Cash Flow Statement – what is it, how it ties in, what info can “you” use?
- Key accounts, definitions and ratios
Year-end Prep & New Year Planning – A How to Guide
It’s never too late to get organized
- What does your tax preparer need?
- Year-end accounting entries like Capital assets / amortization, accruals, deferred revenue, pre-paids
- The importance of the bank reconciliation
- Meals & Entertainment
- What a “good” bookkeeper can do – when do you need to hire assistance?
- Have someone come in versus do it yourself (you’re not Mike Holmes!)
- T4 and T5 filing
- Your year-end package “from” the CA, what now?
- Planning, forecasting and budgeting for the upcoming year
T2125 – Bookkeeping & tax – Tips & trick for the Sole Proprietor
Great for small business – it doesn’t have to be so complicated for owner, unincorporated businesses, real estate agents, consultants and direct sales companies among others
- Review the 5 key elements.
- Learn how it easily ties into your annual Income Tax return
- Discussion on what to expense, and how to code it correctly
- Calculating % for home and car usage
- Excel tips
- What the tax preparer is looking for, and why?