March 15 - 2021

The deadline to file your taxes this year is April 15, about a month away from now. If you haven’t filed your taxes yet, don’t panic! There is still time. Fortunately, filing your taxes can be pretty straightforward for many people. However, for many others it can get complicated. Hiring a professional can be extremely beneficial in many situations. When should you file your own taxes and when should you hire a bookkeeper? This article will explain how you can make your decision.

If you are a busy person, consider hiring a professional

For a simple tax return, it can take anywhere from 7-10 hours to properly file your taxes, possibly more than double if you own your own business. It is important that you have taken an adequate amount of time to gather and review your records and documents. If something is missing or incorrect, it can cause some real headaches down the road. A bookkeeper will make sure you know what documents you need and if you don’t have them, how you can get them. Once you have the proper records, you need to go online and fill out your return documents. This is done online nowadays. Most programs are very user-friendly and offer step-by-step instructions. However, if you don’t have the answer to a certain question, or are missing a document, or just aren’t computer savvy, this can cause some stress.

If you are not the best with computer and technology, hiring a professional will help

Even though online programs make filing your taxes easier than ever, it still requires some degree of computer skills. Many of the documents and records you might need are found in digital versions online. Tax returns are mostly completed digitally. Once your tax return is complete, you send it to the Canada Revenue Agency through their online system. You might not even get paper records from the CRA anymore, as they are looking to move their operations completely online. If you are not the most confident person when it comes to technology, hiring a professional to help you can ease this stress.

Do you have multiple income sources?

Employment income, rental income, residuals from intellectual property, small business revenue, government grants, etc. It is much more common these days to have more than one, if not multiple, sources of income. We do what we’ve got to do to. If your income situation is less than straightforward, you could find yourself overwhelmed at tax time. Don’t let yourself get overwhelmed. Hire a professional to get it sorted out.

Do you want to maximize on your eligible deductions and get the best refund possible?

Can the money you spend on yourself and your family earn you tax credits? When can home renovations be deducted as a business expense? When can you claim your children/spouse/parents as dependents? How do my investments impact my income? A professional bookkeeper knows the ins and outs of what tax credits you may be eligible for, what you can deduct as business expenses, and how to organize your tax return for the best refund possible. Not only this, a professional will offer you advise on how you can maximize your refunds year over year.

November 2, 2020

Let's face it, the past 7 months has been an absolute roller-coaster for many of us. Financial insecurity is causing stress for a lot of people. The government has introduced emergency aid programs to help alleviate some of this stress. A common misconception is that self-employed people don't qualify for these government aid programs. However, there are specific benefits, such as the CRB, that were specifically introduced to help self-employed Canadians.

Here's everything you need to know about the CRB!

Given that the CRB is likely to be the primary benefit available to self-employed and other workers not eligible for EI, let’s see who is eligible, the mechanics of applying, and the tax consequences of receiving the CRB.

What is the CRB?

The CRB was designed to replace the Canada Emergency Response Benefit (CERB) for employees who don’t qualify for EI and for those who are self-employed. The CRB runs from Sept. 27 for one year and provides $500 per week, for up to 26 weeks, to eligible applicants.

Who is eligible?

The CRB is available to eligible individuals who are at least 15 years old and have a valid SIN, have stopped working due to COVID-19 and are available and looking for work, or are working but have experienced a reduction in their (self-)employment income, for reasons related to COVID-19.

You don’t have to be a Canadian citizen or a permanent resident in order to receive the CRB provided you reside (and are present) in Canada during the period for which you’re claiming the benefits (and meet the other eligibility criteria.) Canadian citizens living abroad temporarily cannot collect, even if they remain abroad because they couldn’t get home once the pandemic started.

Similar to the CERB requirements, to be eligible, the individual must not qualify for EI, must not have quit their job voluntarily, and must have had (self-) employment income of at least $5,000 in 2019 or 2020 or in the 12-month period preceding the day on which they make their first application for this benefit. The $5,000 must have been from either (self-) employment income, EI maternity or parental benefits or Quebec Parental Insurance Plan benefits.

Unlike the CERB, the CRB periods are retroactive. This means that applicants can only apply for a CRB after the period for which they’re applying has ended, which is designed to allow an applicant to attest to the fact that they were unable to work for the time for which they are claiming the CRB. This is consistent with how EI benefits are administered and is meant to ensure that applicants are getting the benefits for a period for which they are entitled, thus avoiding the need to repay benefits already received if they were to apply in advance, but then were able to work.

Note, that an applicant can’t turn down “reasonable work” during the two-week period for which they’re applying or they risk automatically losing five periods (ten weeks) of future CRB eligibility periods. They must also wait five periods (ten weeks) before reapplying.

Applicants must apply within 60 days after the period for which they are applying has ended. For example, if you couldn’t work due to COVID-19 for the two-week period between Sept. 27 and Oct. 10, 2020, you can apply for this two-week period until Dec. 9, 2020.

As with the EI system, to encourage CRB recipients to accept work while collecting benefits, recipients can still earn income from (self-)employment while receiving the benefit, as long as they continue to meet the other requirements. To ensure that the benefit targets those who need it most, however, recipients would need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year, up to the amount of CRB they received.

What constitutes a ‘reduction in income’?

To be eligible for CRB while still working, you must have suffered a “reduction in average weekly income of at least 50 per cent relative to pre-pandemic levels.” According to the CRA, a loss of income is defined as a reduction in total average (self-)employment income for the two-week benefit period compared to your average (self-)employment income for a two-week period the previous year.

To calculate your reduction in average income, you either take your annual net income for 2019 or the 12-month period prior to your application and divide it by 26 to determine your average earnings for a two-week period.

How is the CRB taxed?

Like the CERB, the new CRB is taxable, but, unlike the CERB, the government is withholding a flat 10 per cent tax at source from each CRB payment. This means that some of the $500 benefit amount will be withheld by the CRA before you get your payment, and will be credited against any income tax you need to pay for the year. The amount of tax you will actually owe, however, will depend on your total income for the year as the CRB will simply be added on top of your other income and taxed at your marginal tax rate.

September 26 - 2020

	1. Your Time is Valuable! Hiring a bookkeeper will save you time. A bookkeeper will effortlessly stay on top of your financials. Your time is valuable working on your core business.
	2. Hiring a bookkeeper will save you money. A bookkeeper will complete tasks much more quickly and efficiently. Save money when your bookkeeper hands your books to a Tax Accountant because they will spend less time reviewing and more time preparing your taxes.
	3. A bookkeeper will help you gain financial perspective. We will put your financials in order and run reports to show how your business is doing each month, where your funds are going and how your efforts are paying off!
	4. A bookkeeper can assist in future cashflow projections. The right bookkeeper has the ability to project cashflow so an owner can make better decisions faster, mitigate risk and optimize performance.
	5. Balance your work and home life. By outsourcing your bookkeeping, you will have time for yourself and your loved ones. Stay healthy and avoid potential burn out.

March 15 - 2021

The deadline to file your taxes this year is April 15, about a month away from now. If you haven’t filed your taxes yet, don’t panic! There is still time. Fortunately, filing your taxes can be pretty straightforward for many people. However, for many others it can get complicated. Hiring a professional can be extremely beneficial in many situations. When should you file your own taxes and when should you hire a bookkeeper? This article will explain how you can make your decision.

If you are a busy person, consider hiring a professional

For a simple tax return, it can take anywhere from 7-10 hours to properly file your taxes, possibly more than double if you own your own business. It is important that you have taken an adequate amount of time to gather and review your records and documents. If something is missing or incorrect, it can cause some real headaches down the road. A bookkeeper will make sure you know what documents you need and if you don’t have them, how you can get them. Once you have the proper records, you need to go online and fill out your return documents. This is done online nowadays. Most programs are very user-friendly and offer step-by-step instructions. However, if you don’t have the answer to a certain question, or are missing a document, or just aren’t computer savvy, this can cause some stress.

If you are not the best with computer and technology, hiring a professional will help

Even though online programs make filing your taxes easier than ever, it still requires some degree of computer skills. Many of the documents and records you might need are found in digital versions online. Tax returns are mostly completed digitally. Once your tax return is complete, you send it to the Canada Revenue Agency through their online system. You might not even get paper records from the CRA anymore, as they are looking to move their operations completely online. If you are not the most confident person when it comes to technology, hiring a professional to help you can ease this stress.

Do you have multiple income sources?

Employment income, rental income, residuals from intellectual property, small business revenue, government grants, etc. It is much more common these days to have more than one, if not multiple, sources of income. We do what we’ve got to do to. If your income situation is less than straightforward, you could find yourself overwhelmed at tax time. Don’t let yourself get overwhelmed. Hire a professional to get it sorted out.

Do you want to maximize on your eligible deductions and get the best refund possible?

Can the money you spend on yourself and your family earn you tax credits? When can home renovations be deducted as a business expense? When can you claim your children/spouse/parents as dependents? How do my investments impact my income? A professional bookkeeper knows the ins and outs of what tax credits you may be eligible for, what you can deduct as business expenses, and how to organize your tax return for the best refund possible. Not only this, a professional will offer you advise on how you can maximize your refunds year over year.

November 2, 2020

Let's face it, the past 7 months has been an absolute roller-coaster for many of us. Financial insecurity is causing stress for a lot of people. The government has introduced emergency aid programs to help alleviate some of this stress. A common misconception is that self-employed people don't qualify for these government aid programs. However, there are specific benefits, such as the CRB, that were specifically introduced to help self-employed Canadians.

Here's everything you need to know about the CRB!

Given that the CRB is likely to be the primary benefit available to self-employed and other workers not eligible for EI, let’s see who is eligible, the mechanics of applying, and the tax consequences of receiving the CRB.

What is the CRB?

The CRB was designed to replace the Canada Emergency Response Benefit (CERB) for employees who don’t qualify for EI and for those who are self-employed. The CRB runs from Sept. 27 for one year and provides $500 per week, for up to 26 weeks, to eligible applicants.

Who is eligible?

The CRB is available to eligible individuals who are at least 15 years old and have a valid SIN, have stopped working due to COVID-19 and are available and looking for work, or are working but have experienced a reduction in their (self-)employment income, for reasons related to COVID-19.

You don’t have to be a Canadian citizen or a permanent resident in order to receive the CRB provided you reside (and are present) in Canada during the period for which you’re claiming the benefits (and meet the other eligibility criteria.) Canadian citizens living abroad temporarily cannot collect, even if they remain abroad because they couldn’t get home once the pandemic started.

Similar to the CERB requirements, to be eligible, the individual must not qualify for EI, must not have quit their job voluntarily, and must have had (self-) employment income of at least $5,000 in 2019 or 2020 or in the 12-month period preceding the day on which they make their first application for this benefit. The $5,000 must have been from either (self-) employment income, EI maternity or parental benefits or Quebec Parental Insurance Plan benefits.

Unlike the CERB, the CRB periods are retroactive. This means that applicants can only apply for a CRB after the period for which they’re applying has ended, which is designed to allow an applicant to attest to the fact that they were unable to work for the time for which they are claiming the CRB. This is consistent with how EI benefits are administered and is meant to ensure that applicants are getting the benefits for a period for which they are entitled, thus avoiding the need to repay benefits already received if they were to apply in advance, but then were able to work.

Note, that an applicant can’t turn down “reasonable work” during the two-week period for which they’re applying or they risk automatically losing five periods (ten weeks) of future CRB eligibility periods. They must also wait five periods (ten weeks) before reapplying.

Applicants must apply within 60 days after the period for which they are applying has ended. For example, if you couldn’t work due to COVID-19 for the two-week period between Sept. 27 and Oct. 10, 2020, you can apply for this two-week period until Dec. 9, 2020.

As with the EI system, to encourage CRB recipients to accept work while collecting benefits, recipients can still earn income from (self-)employment while receiving the benefit, as long as they continue to meet the other requirements. To ensure that the benefit targets those who need it most, however, recipients would need to repay $0.50 of the benefit for each dollar of their annual net income above $38,000 in the calendar year, up to the amount of CRB they received.

What constitutes a ‘reduction in income’?

To be eligible for CRB while still working, you must have suffered a “reduction in average weekly income of at least 50 per cent relative to pre-pandemic levels.” According to the CRA, a loss of income is defined as a reduction in total average (self-)employment income for the two-week benefit period compared to your average (self-)employment income for a two-week period the previous year.

To calculate your reduction in average income, you either take your annual net income for 2019 or the 12-month period prior to your application and divide it by 26 to determine your average earnings for a two-week period.

How is the CRB taxed?

Like the CERB, the new CRB is taxable, but, unlike the CERB, the government is withholding a flat 10 per cent tax at source from each CRB payment. This means that some of the $500 benefit amount will be withheld by the CRA before you get your payment, and will be credited against any income tax you need to pay for the year. The amount of tax you will actually owe, however, will depend on your total income for the year as the CRB will simply be added on top of your other income and taxed at your marginal tax rate.

September 26 - 2020

1. Your Time is Valuable! Hiring a bookkeeper will save you time. A bookkeeper will effortlessly stay on top of your financials. Your time is valuable working on your core business.

2. Hiring a bookkeeper will save you money. A bookkeeper will complete tasks much more quickly and efficiently. Save money when your bookkeeper hands your books to a Tax Accountant because they will spend less time reviewing and more time preparing your taxes.

3. A bookkeeper will help you gain financial perspective. We will put your financials in order and run reports to show how your business is doing each month, where your funds are going and how your efforts are paying off!

4. A bookkeeper can assist in future cashflow projections. The right bookkeeper has the ability to project cashflow so an owner can make better decisions faster, mitigate risk and optimize performance.

5. Balance your work and home life. By outsourcing your bookkeeping, you will have time for yourself and your loved ones. Stay healthy and avoid potential burn out.