The New Year is over – and tax season is on full-tilt.
That means thousands of small business owners and self-employed Canadians are scrambling to wrap their heads around paying and filing their taxes.
For all things accounting and bookkeeping.
As we all know, equipment and buildings wear out over time. This gradual wear and tear results in depreciation – which is just part of the cost of doing business.
When you're operating a business, and your equipment is gradually wearing out, or getting closer to being obsolete, you're experiencing a hidden expense. It doesn't show up in a cash flow statement, of course. But it's a loss, nevertheless, and a very real one. In Canadian tax law, the way we account for this hidden cost is through capital cost allowance, or CCA.
There are a number of small but important changes to Canada's tax code that became effective on January 1st, 2020. Canadian business owners should know about these changes, both on the business and professional income side and the individual income tax side of the equation. Here are the most significant.
Nearly all small businesses today use some form of accounting software, to keep their financial functions moving efficiently and (relatively) error-free. But choosing the right small business accounting software package can be difficult. Before you commit to any single small business accounting package or platform, here are six critical factors to consider:
Many entrepreneurs are realizing the value of using accounting software-as-a-service vendors.
But just having access to software is no substitute for understanding financial management fundamentals. The more you know about the principles of financial management for small businesses, the more benefit you’ll get out of the software.
To help deepen your understanding, here are seven principles of bookkeeping that apply to small businesses in all industries.