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

Kelly’s Updates from CRA

A few updates that you should know about…

Mileage Claims:

Automobile, the kilometre allowance went up a cent so it is now 55 cents for the first 5000 km and 49 cents for the balance. Remember, if you are paying by kilometre you must have an auto log.

My Account

If you don’t have one you need to get one.  From your my account you can retrieve your notice of assessments, CRA will send the status of your return to your My Account,  you can get balances of home buyer’s plans, RRSP limits …all kinds of great information. Now you can get a mobile app “My CRA” try it!

CRA tends to send out requests for documents and they may not give you a lot of time for this, don’t panic just call the number on the letter and request for more time, they are good for that.

New Economies

As of March 19th,  2018 CRA is jumping on the Airbnb wagon, they will be ensuring that this home-sharing income is reported. This is considered rental income and must be claimed. In fact, all sharing economies are being looked at i.e.: ride sharing, music and video streaming, online staffing, peer/crowdfunding are to name a few that these sharing services must be claimed as income when earning income from these, if not CRA considers it underground economy which may attract fines, penalties or even jail times.

Payment Arrangements with CRA

Payment arrangements, CRA is cracking down on payment arrangements, Last time I dealt with a situation for a client, the collection officer said, before we will even discuss it, I want to see cashflow statement, net worth, a letter from a bank stating they will not loan any money to this client.  If anyone is struggling to pay their debt with CRA there are two tools you can use to see what you think they will allow.

*One is a Payment Arrangement Calculator  – this will estimate the payments and time needed to eliminate the debt

* Two is Income and Expense Worksheet Calculator this helps calculate the part of the one’s net income that is available to pay the tax debt

Payroll Examinations

Lots of these are happening, why?  They are trying to catch any firm that had employees and are now subcontractors so if your payroll dipped down most likely you will receive a letter asking to provide payroll information and bank statements with cheques.  No need to panic if nothing like this has happened.  If you did move people off payroll and are now subcontractors a few things must take place for them to be true subcontractors.  There is a guide on CRA’s website Canada.ca called Employee Versus Subcontractor and it will tell you the status of both to confirm if you can move them to be a subcontractor.  The other situation you have is if CRA’s status says yes, they can be a subcontractor that does not mean WSIB will determine that they are a subcontractor so you need to do a status determination with WSIB using different criteria.  Please ensure you do this, so you are not on the hook for WSIB especially when you didn’t plan for this.

Last Returns

Another issue that has come up more and more and that is the amount of final returns that are happening, when a loved one dies, and you are the executor there is a big responsibility to making sure things go smoothly.  On CRA’s website type in What To Do When A Loved One Dies .  There are forms to fill in so that everything goes smooth.

Celebrating 25 years in Business!

Open house! We are having an open house Nov 23rd from noon to 6pm.  I must apologize, for those who have been to my office, our parking lot is now going to be torn up a bit due to a pipe needing replaced and construction starts Nov 7th, however, they will have a pathway for us to drive back to our unit, I do apologize for this inconvenience. I can guarantee once you pass that mess you will arrive at our office and inside we will have amazing good food and the first 100 people will get a little gift. I hope you can join us to celebrate our 25 years in business! We are excited, and I want to thank all my amazing clients because of you I have grown from just me alone to 6 people  – soon to be 7 !

Kelly Melanson CPA, CMA

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Seven Life Reasons Why You Need a Good Chartered Professional Accountant (CPA)

Seven Life Reasons Why You Need a Good Chartered Professional Accountant (CPA)

1) To Ensure You Are Obeying the Current Tax Laws

Tax laws change each year.  Some years there can be profound or sweeping changes that can change what and how you report income on your tax return.  If your return is filed incorrectly the lament of “I didn’t know I had to do it that way!!!” will fall on deaf ears with the CRA.  The Canadian Revenue Agency (CRA) doesn’t accept ignorance of tax law for a defense. So, if you aren’t willing to constantly pay attention, you could miss something important. Protecting your interests by hiring a knowledgeable tax accountant is the best way to ensure that you are paying only what you need to by accessing all available tax benefits and submitting a tax return that will be accepted by CRA.

2) You Owe Back Taxes to the CRA

If you owe any back taxes you really should hire a good tax accountant to help you sort things out. Owing back taxes or being audited by the CRA can be a confusing and frightening experience and it could take months to resolve. Having a good accountant in your corner can lessen the trauma and the time it will take you to get things back on track.  Once all is resolved, the accountant can help you to get organized so it doesn’t happen again.  Often if you have been audited, CRA will give your tax return file a closer look for a few years. Having an accountant who is familiar with your situation and can speak for you if CRA has questions on future tax returns will save you stress and sleepless nights.

3) Improve Your Credit Rating and Reduce Debt

Sometimes life just gets a little ahead of us and we can find ourselves in debt.  Being in debt can also lead to getting a bad credit rating.  Just ask anyone who has experienced these situations – they will tell you how much it can impact all areas of your life and how long it really takes to pay off debt or re-establish a good credit rating.  A knowledgeable accountant can show you things like how to consolidate debt to make it more manageable, negotiate with creditors and shorten your path back to good financial health.

4) You Are Starting A New Business or Are Self-Employed

If you are self-employed or own your own business, an accountant can help with that too. Hiring an experienced CPA can help you find ways to lower your taxes that you might otherwise miss. There are some big write-offs for the self-employed. Don’t miss out.

If you’re about to start your own business an accountant can help you prepare. With their help, you’ll be able to ensure that all the necessary tax forms are filed correctly and on time.

5) You Own Real Estate or Rentals

Owning several properties is becoming a popular way to grow wealth here in Canada.  While this is a great idea, you must ensure that you are also properly managing the revenue and tax side too.  You could be losing out on various tax benefits and not maximizing your money. If you own your own home, or own rentals, an accountant can help you manage them. There are some specific tax situations tied to rental properties, and some major benefits. You don’t want to miss out on those.

Your accountant can keep you up-to-date on all new tax laws so that you are submitting all the necessary data and reporting to CRA to ensure that you will not be hit with any penalties come tax time!

6) Saving For Your Kids

If you have kids, you will probably want to contribute money to a RESP (Registered Education Saving Plan) savings account, or even a trust. An accountant can help set all of that up. They have the tools to help you maximize your money as you look toward your family’s future.

7) The Road of Life

Life major events also come with financial issues that will need to be addressed. When you get married, divorced, retire or have children your tax situation changes as well. Your accountant will help you navigate the changes so you are always benefiting and protecting your financial health and security.

So, if you need financial or tax planning advice, accounting, bookkeeping, or tax return services please get in touch.  We’d love to help you out.  Take a moment and meet the team…

Kelly Melanson, CPA

kelly@kmpc.ca

905-666-5071

www.kmpc.ca

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

The ABC’s Of Why Small Businesses Need an Accountant

The ABC’s Of Why Small Businesses Need an Accountant

When a small business opens its doors the realities of limited budgets often mean trying to do everything in-house.  While that approach may work for some areas of the business it is not advisable to adopt this approach with accounting.  Owners of a new business should not view hiring of an accountant as a luxury – it should be viewed as a requirement for success.  The right accountant can be a wealth of information and experience to assist in structuring processes to ensure that you are getting the most out of every dollar – from day one!

New businesses should consider hiring an experienced and certified accountant as an investment, not an expense. ‘If only I’d come to see you sooner…  I would have saved so much time and money!’ is a lament that we have heard often over the past 25 years working with entrepreneurs. There are several problems that can arise quickly and unexpectedly for new businesses, but these can be avoided through knowledgeable guidance by your accountant such as: missing tax breaks, falling behind with invoicing or getting in trouble with the government for tax issues.

Here are the ABC’s of why small businesses need an experienced accountant…

Always set up your books correctly from the start:

The fiscal restraints of being a start up usually begins with business owners having the best intentions of doing their own bookkeeping when they find some spare time. However the reality of the demands of starting a new business leaves very little spare time, or energy, to sit down and focus on bookkeeping.  Playing catch up is a common state for business owners.  The problem is that the longer it is before capturing the bookkeeping data the more likely there will be data-entry errors, lost documentation (such expense receipts), books that are out of date and a lot of time lost searching for missing items.

An accountant can help you properly set up your books on one of a variety of online accounting software, such as QuickBooks. This software will make it faster for you to send out invoices, record expenses, follow transactions and organize bank statements. Being organized and having all the information at hand will make it much easier to track things like outstanding invoice payment from clients and the taxes your business owes.

Be sure to pay your taxes on time:

Late filing or payment of taxes results in penalties and interest can cost you thousands of dollars! By working with Chartered Professional Accountant (CPA) you will have all your data organized and won’t overlook tax filing deadlines. An experienced accountant will be proactive with your tax files so that your tax filing is smooth and stress-free.

Tax laws are complicated and can change each year.  A knowledgeable accountant can often save you money by understanding how to reduce the amount of taxes you must pay. By working with an accountant at the start of your fiscal year and using them for your tax planning services, you will be able to keep more money in your business so you can keep growing!

Cash flow is everything:

This is especially true for smaller businesses. Your invoicing system is critical to the overall strength of your business. When you don’t bill on time, you won’t get paid on time and that’ll leave you short of money – it’ that simple. Unfortunately, it is this factor that undermines a lot of newer businesses.

Let’s just sketch out how this can happen… You do work for a client and send the invoice for that work at the end of the month. Usually businesses give their clients 30 days to pay the invoice. However, the employees that did the work, the resources they used, and your office space expenses will need to be paid for by the end of that month. It’s a delicate cash flow balancing act and if you fall behind in your invoicing or payments by clients then you can find yourself in a very tight spot!

And that’s where the accountant you have hired to help you can make all the difference in the world. With the invoicing system your accountant set up for you you’ll be able to efficiently send invoices and track which ones have been paid. Your accountant can also advise you on things like invoice payment terms and your own office expenses, to help reduce potential areas for cash flow slow downs.

By hiring a good accountant, you are building a strong foundation for your business upon which it can survive and thrive.  As we like to say to our clients: It’s good to dream but it’s even better the live your dream!

Kelly

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Tax Tips and Updates

Psst…. RRSP Contribution Deadline is NOW & Other Tax Time Tips and Updates!

In today’s vlog Kelly Melanson, CPA reminds us that time is running out to take advantage of RRSP contributions for this tax year.  Kelly also shares some interesting updates and information like: 

  • New CRA audit focuses that are VERY unusual, like matching your postal code with your house and comparing it to your declared income and seeking 3rd party data to track PayPal revenues 
  • Incorporation or Sole Proprietor? Which one suits you best?
  • Salary or Dividend – do you understand how each scenario would impact your tax planning?

So watch this vlog and hear it straight from Kelly.

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Bill 148 – What Does it Mean to You?

In today’s vlog Kelly Melanson, CPA from www.kmpc.ca and Kourtney Thompson from www.newinitiativeshr.com discuss the impacts of Bill 148 and the recent updates regarding the issue of income sprinkling and other recently changed corporate taxation rules by CRA (Canada Revenue Agency). Here are some helpful links to provide information about the topics discussed today:

Bill 148 –  Fair Workplaces, Better Jobs Act, 2017 passed on November 22, 2017

This legislation makes many changes to both the Employment Standards Act, 2000, the Labour Relations Act, 1995, and the Occupational Health and Safety Act, including raising the minimum wage and providing employees with:

  • equal pay for equal work for casual, part-time, temporary and seasonal workers
  • one week’s notice or pay in lieu of notice for employees of temporary help agencies if longer-term assignments end early
  • fairer scheduling rules
  • a minimum of three weeks’ vacation after five years with the same employer
  • up to 10 individual days of leave and up to 15 weeks of leave, without the fear of losing their job when a worker or their child has experienced or is threatened with domestic or sexual violence
  • expanded personal emergency leave in all workplaces
  • unpaid leave to take care of a critically ill family member

For more in-depth information on issues addressed in Bill 148, click here

To find out more regarding the regulations surrounding the new Employment Standards Act poster click here.

To book an appointment with Kelly Melanson please contact her via her website.

To contact Kourtney Thompson please visit New Initiatives Human Resources Consulting.

Thank you for stopping by!

Kelly

 

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Updates on 2017 Proposed Tax Changes for Business

Updates on 2017 Proposed Tax Changes for Business

Hello friends!  Yes, I have an update on the latest rumblings from the government on the proposed changes to the tax rules for businesses released this past fall (2017) . In this video I discuss the latest updates and what they might mean for you and your company. I have also provided links (below) to more in-depth information on each topic that I discuss in this video. So, make some time to watch this video and read up on these proposed changes… because it’s better to be prepared that to be sorry and owe the tax man!

If you have any questions about these changes please contact our office, we’d be pleased to speak with you.

For more information click on the topic 

Thanks for stopping by!

Kelly

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  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 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

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