Chartered Professional Accountant, Experienced Bookkeepers, Personal and Business Tax Return Specialists - Whitby ON - Call - Toll Free: 1-800-942-5558 or Local: 905-666-5071 admin@kmpc.ca
Succession Planning – Protects your business and retirement… don’t put it off

Succession Planning – Protects your business and retirement… don’t put it off

Succession Planning/Retirement Requires Advance Planning… don’t put it off

 

I fully confess to not being an enthusiastic winter person. So, it is not surprising that as I watch the first snowflakes of the season falling, my thoughts immediately leap to sticking my feet into the sand on a secluded, tropical beach. Winters in a warm climate; that’s a common daydream when envisioning retirement.

For many people, retirement means attending their farewell party then heading home to enjoy their new-found freedom funded by a good pension. But for those of us who own our own businesses, the road to retirement can be an uncertain and confusing one. How can you transform those years of hard work and accumulated equity in your business into a pension fund? It is at this point that the complexities and confusion can become overwhelming. The reality is that if you don’t have a succession plan in place this could leave you dangerously unprepared for retirement, or even disability or death.

 

A Well-Funded, Relaxing Retirement Doesn’t Just Happen… It Takes Planning

 

A succession plan is a must for every small business owner who wants to protect their years of hard work and dedication to their company. Don’t put it off – it is good, responsible business management. The first step in creating your succession plan is to think about the future of your business. Do you see your business: providing you with a retirement income, being passed onto your children, or being sold to a third party?

So, what is a succession plan? A plan should determine how your business will ultimately be transferred in various scenarios and detail the steps necessary to prepare for each of those transitions – because we can’t predict the future, but we can prepare for it. If done properly, your plan should map out the path to your retirement and address the scenarios of your sudden death or profound disability to ensure your wishes are carried as you want them.

As any business owner knows, the reality is that the financial management of their company is indeed separate from their personal financial side, but the two are intensely connected. Consequently, it is necessary to view your business succession planning as an extension of your personal estate planning but with the twist of looking at it through the lens of the future operations of your business. Depending on the future you envision for your business, your plan must be sculpted accordingly:

 Are my business and family protected in the event I should become disabled?
 What happens if I should die suddenly?
 What happens to my business when I am ready to retire?
 What is the best path to get the kind of retirement I want?
 What are the tax implications of each scenario?
 Are there ways I can start building a bigger retirement nest egg?
 How and when can I start preparing for a financially secure retirement?

Consider these questions carefully. As you enjoy the upcoming Christmas season with cherished family, friends and employees, remember your planning protects all of them as well. So, give yourself and them the gift of making the commitment to begin your succession planning with the arrival of the New Year. Then go, relax and relish the magic of the season knowing you’ve done something good.

In the New Year I will have more tips on succession planning so keep an eye open. If you are eager to get a jump on it sooner drop me a line. I am also considering running Succession Planning workshops to help clients get started on the planning path – let me know if that’s something that would interest you.

All the best of the season,
Kelly

 

If you would like to speak to us regarding your retirement or tax planning, tax returns, bookkeeping or any of your other accounting or financial planning needs, please contact us anytime – we’d love to chat with you.

Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca

Tick… Tock -Tax Time is Approaching Fast!

Tick… Tock -Tax Time is Approaching Fast!

Hello! I hope that you have had a good 2017 so far, and just to make sure the year proceeds on a positive note I wanted to remind you that you onl

 

You have until February 28th to contribute to your RRSP! You can watch my vlog to learn more. Don’t delay and lose out! The clock is ticking!

And now would also be a good time to start collecting and organizing all your tax receipts and other documentation…watch my vlog to learn why doing that will save you money! Check it out!

Knowledge is power at tax season!

Knowledge is power at tax season!

Learn how to set up your My Account with CRA

You can better manage your finances if you have up-to-date information. That is why I am encouraging all my clients to make sure they sign up for their “My Account” with CRA. It is fast and easy. You can watch the video on my site where I show you, step-by-step, how to to set up your My Account with CRA You will be happy you did, because once you sign up you can:

Knowledge is Power – Get it with your CRA My Account:

• Find out your RRSP limit, home buyer’s plan balance and Tax Free Savings balance
• Print off your notice of assessments going back to 2005
• See if any carryover amounts like tuition
• See if you owe any money, if you made installments how much, etc.
• Request information through sending CRA a message
• Check your child tax benefit payments and when they were paid
• Check your HST credits, disability credits working income tax benefits, Ontario trillium benefits, so if it says they mailed you a cheque and you didn’t get it, you can call and ask where they sent it to… maybe you didn’t change your address?
• Submit required documentation to CRA when there is a request for information from you. Simply scan it and submit it electronically via your account!
• Save yourself money because you can do all these things yourself and save yourself service fees
• MOST importantly – protect yourself and your money! There have been a lot of scams recently so if you receive a request that seems a little strange you can log into your account and review any letters sent to you from CRA through the view mail function to ensure that it is a legitimate request from CRA.


Extended Hours for Tax Season!

To make it more convenient to drop off your tax return files to our offices, we are offering extended hours:

March 2017

  • Tuesdays and Thursdays until 7pm
  • Saturday March 11th and 25th from 10am to 2pm

April 2017

  • Mondays to Thursdays until 7pm
  • Saturdays from 10am to 2pm

And, as always, you are free to drop your files through door slot anytime after hours. If you have any questions, please feel free to contact the office.

Happy Tax Season!

Kelly

If you would like to speak to us regarding your tax planning,  tax returns  or any of your other accounting or financial planning needs, please contact us anytime – we’d love to chat with you.

 Kelly Melanson Professional Corporation – Certified Chartered Accountant,CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca

Help Your Kids Put Cash Back in Their Pocket at Exam Time

Help Your Kids Put Cash Back in Their Pocket at Exam Time

Get Cash Back at Tax Time Students!

Has it hit you yet?  Your son or daughter has just completed their second month at university or college. Every dollar saved is important so tell you kids how to get cash back at tax time with these easy tips…

Well, before you know it, the end of their school year will be here…just about the same time that tax season rolls around! Don’t leave them to scramble gathering paperwork for their tax returns when they are trying to study for finals. Take a few minutes now to talk with your kids so that tax season is hassle-free.

It’s important to remember that students should file an income tax return (even if they have little or no income) to make sure they claim the tax credits, deductions, and benefits they are eligible for when they file their income tax and benefit return.

Here are some tips you can share with your kids now so that tax time goes more smoothly and they can focus on their exams:

Remember to collect all T4’s from all jobs, and be sure to report them on your tax return. This is to make sure you get the correct refund amount.

Know what you are eligible for in advance. As a student, there are many things they may be able to claim, so keep all receipts for things like:

  • Tuition fees
  • Education amount
  • Rent (for those who live off campus)
  • Eligible moving expenses
  • Child care expenses

Check out this fun video that gives a great overview describing how filing a student tax return will help put cash back in their pocket this tax season…. it’s worth the three and a half minutes! Click the link to watch now: Filing your Tax Return.

The CRA also has a YouTube chann el full of videos that help you and your student understand Canada’s tax system.

Kelly

If you would like to speak to us regarding your tax planning or tax returns please get in touch: Kelly Melanson Professional Corporation – Certified Chartered Accountant,CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca

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