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
How to Budget as an Entrepreneur

How to Budget as an Entrepreneur

Don’t Blur the Line Between Personal and Business Finances

When you open a new business it’s very common for people to grab from one pot of money to top up another.  That is not a good habit to start because it sets the stage for a lot of trouble further down the road.  Keeping your business and personal finances well defined is imperative if you want to run a successful business AND stay on the good side of the Canadian Revenue Agency!

Whether you are a sole proprietor or incorporated, you must keep a clear division between personal and professional funds. Take a few minutes to watch this video that outlines some basic good habits that you can use in your own business management practices.

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. Since 1993, 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

10 Ways to Save Money

10 Ways to Save Money

Easy Ways For You To Save Your Money and Build Wealth

People are often under the impression that in order to save money you need to have LOTS of money, money to spare, and that leftover stuff is what you save.  I am here to tell you that impression is incorrect.  We can all save money!  The trick is finding ways to save tiny bits of money here and there.  Those little bits add up and over time they can add up BIG TIME!  If you follow some of these tips or put on your creative cap and think of a few of your own, you will be on your way to saving money.  That money can be used for things like: investing in savings, saving a down payment for a house or car, paying for that long awaited vacation, paying down debts or maybe even to saving for training or education.

Saving doesn’t have to be painful. You just need to see where you can save a few pennies here and there, have the discipline to do that consistently, and you are on your way!  Watch the video below to see some tried and true strategies that you can use to kick start your own saving behaviour habits!  

Happy saving!

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. Since 1993, 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

How to Live Within A Budget

How to Live Within A Budget

How to Structure a Personal Budget

Today we are going to look at budgeting and how to create a budget for yourself.  The first task is to  assess your Wants and your Needs.  This task is always a really difficult part for anyone starting out.  When I’m dealing with couples, they often tend to disagree on the Wants. They often feel some of the Wants are their Needs, so it’s important to agree on your list before going any further. Once you have reached an agreement on Needs and Wants the next thing you will need  is the past three months of your bank statements so you can look at  your recent spending patterns…  

Watch this video to see how to, step-by-step, create a budget structure that you can use!

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. Since 1993, 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

Mastering Your Money Headspace

Mastering Your Money Headspace

What Is Your Money Behavioural Style?

Today I’m going to be talking about how to build wealth, how NOT to live paycheck by paycheck, how  to live within your means and how to stay out of debt in this world.

Budgeting often gets a bad rap – a reputation of something that is either unattainable or punitive.  I challenge those perceptions!  I hear  people say they feel that budgets just don’t work because they feel they don’t make enough money to consider living on a budget.  As an accountant since 1993, I can tell you most assuredly, whether you  make a lot or a little,  budgets are definitely for everyone!  A budget is a dynamic tool that assists you to tell your money where to go so you are able to save money AND build your wealth  Who wouldn’t want that power?

In order to be a successful money manager it is necessary to be aware of how you behave with money. That requires taking a good look at how you handle and manage your spending and saving.  I am going to discuss 4 different behavioral styles and how they interact with money. You will need to be very honest with yourself  as you determine where you fall in these behavioural categories. With this awareness you are able to  equip yourself with strategies that will assist you.

Please take a moment to watch this video which goes into more depth on budgeting by behavioural style:

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. Since 1993, 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

Kelly’s Updates from CRA

A few updates that you should know about…

Mileage Claims:

(Please Note Update for 2019 Tax Year – The mileage rate is 58 cents for the first 5,000 kilometres and 52 cents for the balance of the kilometres.)

2018 only…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. Since 1993, 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. Since 1993, 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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