If you are a small business owner, you have likely wondered how you should get paid from your corporations, and the two most common ways are through a salary or dividend. In some cases, it can also be a mix of both, so you have to understand this information to determine which option is best…
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Professional corporations are popular in accounting, medicine, and law, and the tax benefits are limited compared to other incorporated businesses because of the regulatory requirement of shareholding. One of the main benefits of using corporate structures is the lower corporate income tax rate, which is an attractive feature that Canadian Controlled Private Corporations (CCPC) can…
Summer has just passed, and the school year is almost upon us. This means that post-secondary school students and their families are looking at ways to help cut costs for further education. While there are certain costs like personal and living expenses that won’t be eligible for any tax breaks, certain tax deductions and credits…
Today, we will discuss what the tax on split income (TOSI) rules are, specifically how TOSI rules affect your ability to pay dividends to your spouse and other adult family members. In the past, being an owner of an incorporated business in Canada, you could save taxes by splitting your income with an adult family…
What is bank reconciliation? You might have heard the term before, but why is it important? Completing a bank reconciliation will involve comparing your accounting balance to your bank statements and making sure the balances match. This helps to determine and explain any discrepancies and it means you can rest assured your accounts are in…
In this article, we will explore and outline the beginner’s guide to bookkeeping and bookkeeping advice that you should not ignore. Use a Separate Bank Account for Business Never mix your personal and business transactions using the same bank account or credit card account. This only causes confusion later on, and not to mention a…
Automobile expenses is one of the highly audited expense items by Canada Revenue Agency (CRA). If you use your personal vehicle for business use or use car owned by your business for personal use, watch out of the issues below. CRA will deny non-allowable automobile expenses, including leases, operating expenses and depreciation. 3 general expense…
In response to the COVID-19 pandemic, the Canadian government offered CEBA loans to businesses to help them survive during this uncertain period. The Canada Emergency Business Account is an interest-free loan program that has approved a countless number of businesses for funding and has loaned them $40K to help them navigate through these difficult times.…
Small businesses have a lot to deal with and while saving money is important, it is equally as important to understand the mistakes that can end up costing you more in the long run. The following are some of the most common legal mistakes small businesses make, so make sure you avoid them: Choosing The…
On April 19, 2021, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience, to the House of Commons. No changes were made to personal or corporate tax rates (other than a temporary measure for zero-emission technology manufacturers), nor to the inclusion rate…