With our new accounting team on board, Total Accounting & Financial Services, we work with our clients to provide peace of mind, insight and assistance into the financial management of their business. We act in an advisory role to our small and medium-size businesses that enable them to make better informed business decisions. We provide our clients with professional bookkeeping services such as Accounts Payable/ Receivables, HST Remittance, and Financial Reports.
Accounts Payable / Receivables
If internal control is a concern to your company, you may want to consider outsourcing your Accounts Payable to prevent possible embezzlement by in-house Accounts Payable personnel. We can prepare the cheques for paying bills on a regular basis and send the prepared cheques back to you for signing.
By keeping your books up-to-date, your accounts receivables will also be up-to-date. Knowing which customers owe you and how much they owe you will certainly enable you to follow up with all outstanding invoices in order to improve your cash flow.
HST Remittances
Harmonized sales tax is a tax that applies on most supplies of goods and services made in Canada. Examples of goods and services for which HST is not charged and collected include:
- Used residential housing
- Long-term residential accommodation
- Most health, medical, and dental services
- Child-care services
- Most domestic ferry services
- Legal aid services
- Many educational services or tutoring services
- Music lessons
- Most services provided by financial institutions
- Insurance policies
- Most goods and services provided by charities
Certain goods and services provided by non-profit organizations, governments, and other public service bodies.
Companies which provide taxable supplies in Canada, and have total revenues from taxable supplies of $30,000 or less in the last four consecutive calendar quarters must register for HST. When registering for HST, the reporting period should be the same as your fiscal year for income tax purposes. Input Tax Credits (ITC’s) can be claimed on the HST return to recover HST paid or owed on purchases and expenses for the business. When completing the HST return, deduct the total ITCs for the reporting period from the HST collected and the result would be the net HST Refund (or payable ).
For companies with $500,000 or less in annual taxable revenues, there is an option to either have a quarterly reporting period or an annual reporting period. If your reporting period is monthly or quarterly, the filing and remittance deadline is one month after the end of the reporting period. If your reporting period is annual, the filing and remittance deadline is usually three months after the end of the reporting period.
For annual filers, if your net tax for the current or previous quarter is less than $3000, then paying quarterly installments is not necessary. For those who need to make installment payments, the deadline is one month after your fiscal quarter end date.
Financial Reports
Every business needs a set of financial statements or financial reports for its operations. Existing equity investors use financial statements to monitor their investments and to evaluate the performance of management. Prospective equity investors use them to decide whether or not to invest. If you are applying for a bank loan, the bank would require you to provide them with a set of financial statements to evaluate whether the company has a strong enough financial performance for them to approve your loan. As a manager, you will need to look at the company’s financial statements to assess your performance. Suppliers of products and services may request to see your financial statements to provide surety that sales made on credit terms will be paid to them. Also, Canada Revenue Agency requires a set of financial statements each year for taxing, regulating, and/or investigating the company.
Financial Reports provide an overview of your businesses financial conditions in both short and long term. Our monthly reporting package includes:
Income Statement: showing the revenues, expenses, and profit for the month and Year-to-Date so that you can track how profitable you are.
Balance Sheet: shows you the cash available, accounts receivable, inventory balances, fixed assets, accounts payable, HST payable, source deductions payable, taxes payable, bank loans, shareholder loans, and retained earnings.
A/R Aging: detailed report showing which customers owe money and how old the balances are.
A/P Aging: detailed report showing which bills are unpaid based on when they are due.