Stacey Leonard No Comments

Build Better Business Money Habits

It’s an unfortunate reality that so many of us always wonder why our wallet is suddenly much lighter than we remembered not long ago. Developing better business money habits can help you save money and help create the lifestyle that you always dreamed of.

So why wait for the New Year or to pay off your debt to start saving money? Start now and you can begin seeing results sooner. Don’t wait for the “right time” because there won’t be one. Here are some tips to help save money now!

Keep Track of Receivables

One sure way to create better business money habits is to increase your collection of receivables. The faster you collect your receivables, the faster the cash flows into your business. There are a few ways you can do this. First, always try and follow up with customers to ensure that they received their invoice. This will either give them a friendly reminder to make a payment or, if they didn’t receive the invoice, give you the chance to send it over. If possible, an Accounts Receivable clerk should be appointed to manage the collection of receivables. This will further encourage fast collection of receivables if they are being closely and constantly monitored.

Another way to increase collection of receivables is to implement a sales contract with payment terms, such as 2/10, N/30. This means that if the customer pays their invoice within 10 days, they get a 2% discount off the original price. Otherwise, after 10 days they must pay the invoice in full and after 30 days interest is typically charged. By creating fast payment incentives and late payment consequences, you encourage the customer to pay their invoice a lot faster than if there were no payment terms. In addition, this also minimizes the likelihood of uncollectable accounts due to delayed receivables.

Discuss Payment Terms

Another way to develop better business money habits is to discuss payment terms with your suppliers. Your payment terms should be longer than or equal to your accounts receivable terms in order to maintain positive cash flows. Although, be mindful that you don’t want to delay your payment terms so much that you harm the relationship between you and your suppliers.

Start Small for Big Results

Don’t try and change all your finances at once. This will only create an impossible feat. Instead, identify the area of financial reform that will make the most significant impact, and focus on that. These small changes are easy to incorporate into your everyday life. Moreover, make sure that this area fits with your priorities so that you’re invested in the end result. Then, once you improve this area you can move on to other areas. Before you know it all of these small changes will lead to significant results. Some areas to prioritize in order to improve your financial life include:

  • Spending less
  • Paying down debt
  • Saving for retirement or a down payment on a house

Everyday Decisions Add Up to Larger Profits

Last, but definitely not least, the best way to save money and increase cash flow lies in your everyday decisions. By being mindful and making it a habit to save money wherever possible on a daily basis, you will notice your unnecessary expenses decrease which will lead to greater profits. Soon enough, you won’t even have to think about these decisions anymore as they will become a habit during your everyday life.

We know that saving money can be a difficult feat. Hopefully these tips will help improve your business money habits. Interested in learning more? Contact our team at (226) 214-3233 and we would be happy to advise.

MikeWiddis No Comments

HSA Medical Expense Tax Deduction

As a small business owner, is there a way to save on tax using my family’s medical expenses? The short answer is, absolutely! There are a couple of different ways.

Eligible Medical Expense Claims for all Taxpayers

First, not only business owners, but every taxpayer has the right to claim eligible medical expenses on their personal tax return every April.  There are a couple of downfalls though.  The medical tax credit doesn’t kick in until you have more than 3% of your net income in expenses or $2,237 (whichever is less).  So, a taxpayer with an income of $75,000 would get no benefit from spending over $2000 on medical expenses.  Also, this is a credit, not a deduction, and deductions are always better!

HSA Deduction – Small Business Owner Benefit

One benefit of being a small business owner is that you can choose to have your business set up a Healthcare Spending Account (HSA) which is a deduction to your business income. Every dollar your business spends is eligible, no minimum like the tax credit. You get to choose the monthly amount that makes sense for your situation. When you have an eligible expense, you can submit the receipt and be reimbursed 100% from this account (up to the account balance). On top of that, this reimbursement usually only takes a couple of days! Moreover, even if your spouse has benefits from their employer, which may only cover a portion of the difference, can also be reimbursed from your HSA. It includes everything that you are out of pocket for yourself, your spouse, and all dependents.

There is a long list of eligible expenses on CRA’s website Take a look, you may be surprised at the items that you may have missed taking advantage of in the past. Getting a HSA setup is just one way to maximize your hard earned dollars and save on tax. If you want to learn more about the HSA deduction and other benefits of being a small business owner, please contact us at (226) 214-3233 and we would be happy to chat!

Stacey Leonard No Comments

What is Bitcoin and the Blockchain?

Blockchain is the future of finance, and the future is right around the corner! With technology constantly advancing, it’s critical for your small business to keep up to date. Otherwise, you risk falling behind and getting lost in the past. To stay informed and learn more about Bitcoin and the blockchain, including its benefits, keep on reading!

What is Bitcoin and the Blockchain?

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors of Blockchain Revolution

So what is Bitcoin and the Blockchain that everyone’s talking about? A blockchain is a public ledger of all Bitcoin transactions that have ever been carried out. The completed blocks are constantly added to the growing blockchain in a chronological order. More specifically, the blockchain contains the full history of the transactions, where you can think of the blocks as being individual bank statements. Thus, the blockchain creates a permanent and unalterable database of all Bitcoin transactions.  Also, since the blockchain is decentralized, you can carry out Bitcoin transactions directly, without any third-party intermediary. In sum, the blockchain’s mission is to create more a open, fair, and accessible financial future.

Benefits of Using Bitcoin

“As revolutionary as it sounds, Blockchain truly is a mechanism to bring everyone to the highest degree of accountability. No more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved. Above anything else, the most critical area where Blockchain helps is to guarantee the validity of a transaction by recording it not only on a main register but a connected distributed system of registers, all of which are connected through a secure validation mechanism.” – Ian Khan, TEDx Speaker

No Intermediaries

Wait, so we don’t have to wait for days for a transaction to clear the banks? That’s right! Bitcoin allows two users to make an exchange without the intermediation of a third party. As a result, Bitcoin transactions only take minutes to complete and are processed constantly. Hence, people around the world can now validate and transact immediately using Bitcoin. Moreover, by eliminating third party intermediaries, costly transaction fees will be minimized.


The blockchain consists of decentralized networks that are spread over millions of computers. Therefore, this eliminates the risk of a central point of failure or weakness. In effect, the blockchain is more resistant to malicious attacks since no centralized information exists for a hacker to exploit. The data is accessible to users all around the globe and is secured by encryption technology. Encryption technology is more secure because it uses randomly generated strings of numbers that can only be decrypted using a private key. This is much more effective in comparison to the common “Username” and “Password” security method.


Any changes made to public blockchains can be viewed by all parties, which creates transparency. The data is public because it is embedded within the blockchain network as a whole. Furthermore, all Bitcoin transactions are immutable. This means that they cannot be altered or deleted, which minimizes fraudulent activity. Consequently, the transactions are internally audited through blockchain technology. In other words, small business owner’s won’t have to worry about keeping track of these transactions (say goodbye to hording receipts!). On top of that, the stress and pressures of an audit are reduced, since all of the transaction information is permanently stored.

High Quality Data

Lastly, Bitcoin transactions provide high quality data that is complete, accurate, timely, and universally available. Since blockchain technology records every Bitcoin transaction ever executed, it can also provide historical insight. 

Hopefully, after reading this you have gained some insight about Bitcoin and its benefits. In brief, the blockchain and Bitcoin provide endless opportunities to those around the world, such as secure cost- and time-saving benefits. At UpSide Accounting, we are now accepting the digital currency, Bitcoin! If you’re a small business that currently operates using digital currency, phone us today at (226) 214-3233 and we would love to see if UpSide is a good fit for you. 

Stacey Leonard No Comments

Small Business 201: Find Me the Money!

Congratulations, you got your small business off the ground and running! Where are you going? You know the basics now, like strong bookkeeping, the importance of an accountant, and the pros and cons between sole proprietorship and incorporation. As you continue to streamline, your services get a little fancier with your business practices. We’ve got some great tips to help you find the money to do so.

Begin with Budgeting

Balancing your books is only part of the battle to business success. Realistic and emergency budgeting is at least as vital to making it past 5 years. Your budget should include the things you expect like overhead, wages (including yours!), benefits (also including yours!), taxes, and marketing. It should also include things you don’t expect, like downtime and emergencies. Ideally you should reinvest up to 50% of your capital back into the business. After taxes, of course. If your business is growing at the speed of light, it’s not crazy to go ahead and reinvest 100% after taxes.

You might like to set aside a few hundred dollars to support local community events or join the local chamber of commerce. This will help get your name out there and build your professional network. We also advise that you tuck something away to pay for professional development opportunities, either for yourself or employees. And a little something more for awards – if you’re fortunate enough to be nominated for a business award, there’s a very good chance you’ll need to pay for your own dinner at the event ceremony itself.

Then Look at Financing

Those first few years of a new business are astronomically stressful because oftentimes you’re starting from scratch. No office, no equipment, no employees, no street cred, no customers, not even any Facebook followers. Before you bleed your savings dry, look into the many forms of financing available to get you started.

Bank loans are a main staple. Plus you’ve got the Canada Small Business Financing Program, angel investors, and crowdfunding. Both bank loans and the Canada Small Business Financing Program are handled by financial institutions. Angel investors are trickier to attract. However, with some solid online sleuthing, networking, and a solid business model and product, you may find what you’re looking for.

If you’re business is in Waterloo Region, you’re in luck! Check out the Golden Triangle Angel Network. We also recommend watching Dragon’s Den for pointers if you’re brand new to business. Finally, crowdfunding could be exactly what you’re after. Platforms to launch crowdfunding include rewards, donations, equity, and debt-coverage.

Tax Incentives and Grants are Reliable

Although retroactive, there’s no reason why you shouldn’t scope out available tax credits and plan ahead to capitalize on them. In particular, the Scientific Research and Experimental Development tax credit (a.k.a SR&ED pronounced “shred”) is designed to help businesses recoup a percentage of materials and time lost during product development. It’s open to all kinds of manufacturing, as well as some digital industries. Talk to your accountant for advice on how to track your time and materials in preparation.

Applying for grants requires serious budgeting and forward-thinking but the rewards are worthwhile. Government grants change regularly. Although, they’re generally available for expansion, hiring, professional development, capital investment, and research and development. There are consultants for hire to help you apply for grants. The government agencies themselves also tend to provide excellent support so you can apply on your own. However, beware that grants cannot be retroactively applied and often take upwards of 6 months to win approval.

Upside Accounting supports your business beyond the books. Our consulting services cover a wide range of industries and business needs from budgeting, best practices, and customized growth strategy planning. Contact us to find out how we can help your business by calling (226) 214-3233.

MikeWiddis No Comments

Should I Outѕоurсe My Small Business Aссоunting аnd Tаx Filingѕ?

Tоdау lеt’ѕ tаlk a littlе mоrе аbоut bеѕt business рrасtiсеѕ – specifically, twо thingѕ that саn bе a rеаl сhоrе: small business accounting аnd taxes.  Likе it оr nоt, accounting and tаxеѕ аrе a vitаl part оf your small business. Thus, it’ѕ сritiсаl thаt thеу bе hаndlеd соrrесtlу.  Whеn уоur buѕinеѕѕ rеасhеѕ a сеrtаin ѕizе, you may decide tо hаndlе thеѕе funсtiоnѕ in hоuѕе, but fоr mоѕt ѕtаrtuрѕ, it makes mоrе ѕеnѕе to оutѕоurсе your small business accounting and tаx filingѕ.

Time is Money

Unless you hаvе аn accounting оr tax bасkgrоund, you’ll likеlу ѕреnd far tоо much timе in “do-it-yourself” mоdе.  That’s time уоu could have ѕреnt marketing your buѕinеѕѕ аnd ѕеrving your customers inѕtеаd.  Thus, in most саѕеѕ, it’ѕ probably cheaper for уоu tо hire аn еxреrt thаn it is tо ѕtrugglе thrоugh it уоurѕеlf.

For example, lеt’ѕ ѕау уоu’rе a grарhiс designer who charges $75 реr hour.  Yоu соuld еаѕilу wаѕtе fоur or five hours оf уоur own timе оn ассоunting tasks that wоuld tаkе a рrоfеѕѕiоnаl аn hоur tо dо.  Yоu соuld hаvе earned $300 in thаt time frame.  Inѕtеаd of dоing it уоurѕеlf, уоu соuld hаvе раid a pro half оf that or lеѕѕ to gеt thе ассоunting dоnе fоr you.

In sum, nо one likеѕ to ѕреnd money on whаt seems likе ѕuсh a waste of gооd profits.   Small business accounting аnd tax рrераrаtiоn аrе twо аrеаѕ thаt dоn’t еxасtlу ѕсrеаm “luxury!” However, thе ѕаvvу еntrерrеnеur knоwѕ this iѕ indееd аn аrеа where mоnеу is wеll ѕреnt.

Cоmрlеxitу Invitеѕ Cоѕtlу Miѕtаkеѕ

Tаx lаwѕ аrе complex.  You соuld gеt into trouble if you inсоrrесtlу prepare аnd filе уоur tаxеѕ оn уоur оwn, withоut thе help оf a рrоfеѕѕiоnаl. A tax professional not only knоwѕ the inѕ аnd оutѕ оf fеdеrаl tаx law but hе оr she is аlѕо uр to speed оn the uniԛuе lаwѕ that аррlу to thе province аnd lосаlitу where уоu dо business.

Hiring a рrоfеѕѕiоnаl will give уоu the реасе оf mind that your ассоunting and tаx filingѕ hаvе bееn dоnе соrrесtlу.  In fасt, the confident ассоunting firmѕ will guаrаntее thеir wоrk.  That iѕ, if you’re еvеr аuditеd, they’ll bе there to wаlk with you through еvеrу ѕtер оf thе аuditing рrосеѕѕ.  In most саѕеѕ, уоur ассоunting firms саn еvеn ѕреаk with thе аuditоr оn уоur bеhаlf.

Keep Mоrе Mоnеу In Your Pocket

Hiring a рrоfеѕѕiоnаl for ассоunting аnd tax filing can actually ѕаvе you money.  Whеn уоu hirе an accountant оr bookkeeper, thеу’rе wоrking for уоu.  They’re running a buѕinеѕѕ juѕt likе уоu are, аnd thеу wаnt tо mаkе уоu a happy сuѕtоmеr.  More specifically, some tаx and ассоunting рrоfеѕѕiоnаlѕ even go out of thеir wау to find you every dеduсtiоn possible, аnd offer tiрѕ аnd ѕресiаl wауѕ tо ѕаvе your buѕinеѕѕ money.  If your’s isn’t….get a new one.  Thеу tаkе continuing education сlаѕѕеѕ tо kеер abreast of the lаtеѕt сhаngеѕ in thе tаx соdе. Bе honest – would you tаkе thе timе to dо thiѕ each уеаr? The fees you pay fоr tax preparation саn end uр saving your buѕinеѕѕ thоuѕаndѕ оf dоllаrѕ every year.

Chооѕе With Care

Whеn уоu оutѕоurсе bookkeeping аnd tаxеѕ, уоu’ll be rеvеаling private finаnсiаl infоrmаtiоn аbоut уоur buѕinеѕѕ tо аnоthеr party.  Therefore it wоuld bе wiѕе tо dо some research firѕt.  Gеt rесоmmеndаtiоnѕ, аnd don’t gеt just оnе.  Aѕk аrоund.  Depending оn уоur linе of buѕinеѕѕ, thеrе mау bе a tax professional thаt specializes in уоur аrеа, ѕо don’t be ѕhу about аѕking.

Dо your rеѕеаrсh wеll, аnd mаkе ѕurе thаt уоu’rе wоrking with ѕоmеоnе of good сhаrасtеr. Intеrviеw a few ассоuntаntѕ оr bookkeepers until you find thе best fit for уоu аnd уоur buѕinеѕѕ.  Yоu wаnt someone you саn rеаllу truѕt.  Always аѕk fоr rеfеrеnсеѕ – аnd сhесk thеm.  Yоu want tо сhооѕе a firm (оr an individuаl) with роѕitivе customer satisfaction rаtingѕ.  Furthermore, if уоu gо with a lаrgе ассоunting firm, уоu’ll wаnt tо еnѕurе that уоu wоn’t bе treated аѕ “juѕt a numbеr.”  Actually, ѕit dоwn and mееt with thе реrѕоn whо will bе аѕѕignеd tо уоur buѕinеѕѕ ассоuntѕ.

A final word of саutiоn: ѕоmе CPAѕ and ассоunting firms mау not hаvе еxреrtiѕе in аll thе areas уоu nееd.  Sоmе ѕеrviсеѕ mау come with аn еxtrа сhаrgе.  Hence, be sure to aѕk ahead of time fоr a full, writtеn explanation of еxасtlу what services аrе included and thоѕе thаt аrе nоt inсludеd.  It wоuld bе wiѕе to hаvе еvеrуthing ѕреllеd out in a service contract so that there are no unexpected surprises whеn the bill arrives.

Interested to see if UpSide Accounting is the right fit for your small business accounting? Contact us today at (226) 214-3233 and we will happily see how we can help you!

MikeWiddis No Comments

Being audited? Don’t panic!

If you receive notice of an audit from the Canada Revenue Agency (CRA), the first thing you need to do is stay calm. The reason your account was flagged could be something as simple as you significantly increased your charitable donations last year. It could also be merely the fact that you are a new business owner. Instead of conjuring doom and gloom, consider an audit to be and ordinary part of business. You’ve already got all the documentation readily available – it’s what your accountant used to complete your tax file, to begin with, after all.

Benefits of an Audit

Your audit is a learning experience. The CRA representative will point out what you’ve done wrong before it gets out of hand, potentially saving you from severe fines and future audits. And you may not have done anything wrong! It’s as likely you’re being audited because yours is a new business. Tax files are delivered electronically now, without receipts or supporting documents. As a result, sometimes the CRA just wants to go on more than the honour system. You may even learn about additional benefits you’re eligible for that you aren’t taking advantage of.

What to Expect

Expect to receive the notice in writing, allowing you to mop the sweat from your brow in relative privacy. Once the initial shock wears off, the first thing you should do is call your accountant. Your accountant can join your audit team and may liaise with the CRA on your behalf, as well as be present during the in-person portion of your audit. This may cost an additional fee, but it’s a worthwhile service because not only do they speak the lingo, they’ve done this before. An audit should be taken seriously, but no need to lose sleep over it.

The key to getting your audit off to a good start is to respond to the CRA’s request promptly. This is the kind of unexpected situation that you make time for now. Your notice will outline the reason for your audit, what documents you need to prepare, and who to contact to book your appointment. Your appointment will likely take place in your office. This allows the convenience of easy access to all of your documentation in case you forget something or the auditor requests additional documentation. The length of the appointment is unique to the size of the business and the documents required for review. You may be required to produce documents ahead of time, or the auditor may take some with them for additional review after the appointment. Don’t stress, this is all normal!

Final Outcome

Once your audit is complete you will receive a letter outlining the final outcome, whether you owe additional taxes or are owed a refund, and how to proceed. At this point, you still have the opportunity to appeal the decision or to provide additional documentation. You may also talk to your auditor for more information to be sure your bookkeeping and claims are on point going forward.

Audits are a hassle, but they don’t have to be a nightmare. Do it right the first time! Upside Accounting provides bookkeeping and business consulting in addition to tax preparation and audit assistance. To book an appointment call (226) 214-3233.

upsideacct No Comments

Cloud Accounting While Traveling

Recently, I traveled to Costa Rica for two weeks on vacation. While it was not an opportune time to travel, the time was needed to recharge and experience the sun, nature, and beaches of the Nicoya and Central Valley.  The plan was to do some work to test the cloud accounting experience of working while away in an exotic locale.

However, I mentioned to my business partner, Mike Widdis that I was skeptical on how this would work.

My Doubts Included;

  • How good are the wireless connections?
  • Can I really get motivated at the beach, beside the pool, in the hotel?
  • Will all my programs and connections perform adequately to be productive?
  • Does working abroad, in the cloud, really work?

Did it Work?

After a few days of exploring, parties, and R&R, I found myself in the village of El Castillo, in the shadow of Volcan Arenal. After a few ill-fated attempts at the wireless, I was connected and ….. getting some things done. Before long I was working on a QBO customer, publishing Hubdoc receipts and reconciling bank accounts. My biggest challenge was dodging the direct sunlight so I could see the screen! 🙂 There were moments when I looked over my shoulder and smiled at the accomplishment and benefits of cloud accounting as Arenal loomed not too far in the distance.

I can now profess that working abroad, in the cloud, can produce results. Choose your location carefully, make sure your connection is strong, and hunker down for a day of work. When you are done, take a dip in the ocean/pool, have a cold drink, and enjoy your playground.

Get your head in the cloud, what app are you waiting for!

Pura Vida


MikeWiddis No Comments

Debt-Crushing Habits for Small Business

Debt is such a normal state of finances that the idea of it isn’t as scary as it was a generation ago because everyone’s dealing with the same things; lease for office and manufacturing space, vehicle payments, and the business loan that helped get you off the ground.

The truth is that debt is scary, and a serious player in the success or failure of your business. Without a plan to pay your debt not just down but off you can’t get ahead. Work these debt-crushing habits into your business plan now and make a business plan to thrive rather than merely to survive.

Set a budget, stick to it, and practice tidy bookkeeping.

Budgets require so much care they’re practically living beings. You have to make adjustments based on your expenses, your income, rising prices for equipment and wages, and interest on your loans. It’s smart to set up a budget at the start of every fiscal year, and it’s wise to review it at least every quarter. Know where your money goes by tracking every single expense. Look hard at where you’re failing to stick to your budget and find out why. Don’t fix the failure by assigning a higher expenditure to the failing part of the budget unless you can cut back somewhere else or dramatically increase your income.

Pay down debt.

You’ve already got debt, that’s business. Pay it off! Pay it off at a higher rate than the minimum or else you’ll never get anywhere. You have additional bills to pay, you want to grow your business, and you want to earn a living. Hold off on incurring more debt before paying off what you already owe. You’ve got the saying, “You have to spend money to make money,” ringing in your ears, but that’s a general idea, not words to live by. Take calculated risks rather than hoping for the best. Look at your tidy books and forecast your projected income to see whether it’s worthwhile to invest in another machine or hire another employee this year or if next year is the smarter option.

Make more money.

If your income isn’t enough to cover your debt and then some, find ways to increase your business or upscale your services. Create more appealing packages, consider partnerships, find out what the needs of your clients are and fill them. Increase your rates. If you can’t make more money, scale back your expenses. Find smaller office space, use only 1 vehicle, and sell seldom-used equipment that you can rent when needed.

Save Money!

In addition to your accrued debt, you’re going to owe taxes and your accountant. You may want to give your employees a year-end bonus. You should be prepared for an emergency. Save at least 10% of your income to cover expected and unexpected expenses. How do you do that? Pay your savings account first. It’s a popular suggestion of financial consultants everywhere because it works. Make saving money a priority in your bookkeeping rather than an “if” and see if you don’t sleep better at night.

Feeling overwhelmed or uncertain about your debt? Want to know what reasonable debt is and how to tell your accounts are out of control? Book a consultation with Upside Accounting for sound advice from one small business to another. Call (226) 214-3233 from anywhere in Canada to set up an in-person, phone, or virtual appointment.

Debt Free Party!
MikeWiddis No Comments

Bookkeeping, what is it good for?

To those who miss the rich nuances in the art of bookkeeping, this chore is simply keeping track of invoices and bills in order to pay the staff and your taxes. And that’s good enough, which is perplexing to us accounting geeks because in our experience “good enough” isn’t good enough for entrepreneurs. You started your business from an idea and worked hard to build what you have now. Keep that momentum going by harnessing the powers of quality bookkeeping and turn “good enough” into dollars and sense.


Bookkeeping entails intimately tracking your income and expenses in a book called a ledger – by now we sincerely hope you’ve discovered the sanity-saving software versions. You bought an online advertising package? That goes in the ledger. You paid your employee? That goes in the ledger. Even unpaid invoices are included.

It’s the details of bookkeeping that trip most people up. The idea of noting your latest gas receipts and weekly mileage regularly sounds easy, but it’s even easier to say, “I’ll do that next week.” Say that a few times, and suddenly your fiscal year end is upon you, and you’ve got mountains of debits and credits to enter. Now your bookkeeping is a nightmare! *cue horror movie soundtrack* It doesn’t have to be like that. Take 5 to 10 minutes and balance your latest bank statement or hire a bookkeeper to come in once a month and do it for you. If it’s not obvious that investing time and maybe a bookkeeper’s wage is going to make you money, look closely at the data.

Up-to-date bookkeeping is a map of your business that provides clear navigation to success. When you can easily review the details of where you’ve been, you can plan where you’re going with accuracy to relieve stress and get excited about the future. Updated bookkeeping allows for:

Tax Planning

Know how much you’ll owe in taxes, and plan for it – we know, that one’s easy. Good bookkeeping also means you can look ahead at current and upcoming tax credits that you or your business qualify for and make plans for eligibility, like hiring and apprenticeship credits. And make sure you’re updated on the current fiscal year’s expense allowances administered by the CRA before you blow the budget wooing a new client.


Forecasting is an incredibly satisfying perk of bookkeeping. Use your historic financial and business information to project your upcoming year. Know when your busy season is and be prepared to hire additional staff. Know when your quiet season is and be prepared to lay staff off. Examine your upcoming projects and find out whether any of them qualify for government funding. Look at your growth to devise an expansion strategy.

Realistic Budgeting

Budgeting and Forecasting are best friends. Use your financial forecast to set a budget – a realistic budget based your own historical data. Know when it’s critical to save extra funds in order to support slow times. Use your budget to measure your real-time financial situation as the year goes on and make adjustments based on what has already happened and what your business’ history suggests will happen so that you aren’t left scrambling to pay bills or fulfill orders.

Upside Accounting can help you develop excellent bookkeeping skills and plan for the future. Never done this before? That’s okay! We’re here to help. Book a consultation today by calling (226) 214-3233.


MikeWiddis No Comments

To Buy or Not To Buy?

As your fiscal year-end nears – and for a lot of our clients that momentous date is December 31st – you should be thinking about your bookkeeping and taxes. This can be especially tricky when your fiscal year-end aligns with the calendar year-end. It’s tricky because you also have to balance the holidays, vacation schedules, and your increased orders if your customers rely on you at gift-giving time. Pre-planning for your fiscal year-end could provide you with huge savings immediately at tax time. Thus, persevere to take a look at your books. In particular, consider what depreciable property you could purchase now that will allow you to benefit from capital cost allowance (CCA) ASAP?

Assets, Defined

Allow us to explain. When you hear the word “depreciable property” or “assets” it’s not unusual to immediately think about big machinery. Whereas, us accountants and business counselors want you to think of assets as any kind of machinery, equipment, furniture, fixtures, or other need-or-nice-to-have items that cost upwards of $500 with a life expectancy greater than 1 year. Think machinery, but not just of the assembly line variety; include equipment you use for packaging, mailing and administration. Think about laptops, desktops, tablets, cell phones, scales, mixers, labeling machines, cars, desks, exterior signs, trade show displays, buildings, and commercial property. Your coffee machine might even qualify if you’re fancy like that.  

When to Buy

The burning question that keeps a depreciable asset on your year-end shopping list is whether to buy now or next year. There are pros and cons to both. Although, we tend to advise you towards now because you’ll receive a tax deduction sooner rather than later. While you get to spread the deduction out over multiple years (yay!), that first year is always considered a half-year (rats!). This is because the CRA figures you didn’t benefit from your new toy for that whole year. No matter what part of your fiscal year you purchase an asset in, you only get half of the deductible in Year 1. This is why it’s hugely beneficial to make that purchase at the close of your fiscal year rather than the start.

An Example

Let’s pretend you’re buying a laptop:

Let’s say the laptop is purchased for $749.99 before tax. You receive a 55% deductible for computer hardware.

Year 1 deductible comes to $206.25, which makes the book value of the laptop in Year 2 $543.74.

Year 2 deductible comes to $299.06 which makes the book value of the laptop in Year 3 $244.68.

In the first 2 years, you have that laptop, you’ll get $505.26 back in tax deductions. Every asset is categorized with different rates, but the general deductible range is 4%-55%. Lower percentages are applied to the highest-priced assets, like buildings, so your deductible is still beneficial.

Bonus tip: You don’t have to claim your CCA every year. If you don’t owe taxes this year, you may not want to claim the CCA and carry it forward for next year. It pays to plan ahead!

There are other ways you can use asset purchases to your benefit, and these may influence your decision to buy now or buy later. Contact Upside Accounting at (226)-214-3233 and find out what else you should be thinking of as your fiscal year winds down.