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 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!

The KMPC team specializes in helping companies grow via strategic financial management practices. Since 1993, KMPC 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.

KMPC– Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9  (905) 666-5071 

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:

The KMPC team specializes in helping companies grow via strategic financial management practices. Since 1993, KMPC 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.

KMPC– Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9  (905) 666-5071 

Email: admin@kmpc.ca  Web: https://kmpc.ca

Summer 2019 Newsletter

Summer 2019 Newsletter

The weather is starting to look more like summertime so, I thought this would be a great time to send out our KMPC newsletter to keep you up-to-date on all the news before it’s time to head off to enjoy your summer fun!

Feeling Green?  Well You May Be in Luck If You Purchase A Zero Emission Vehicle

The government has recently said that they will provide rebates for those people who buy zero emission vehicles. Effective as of May 1, 2019, the federal government is providing point of sale incentive for consumers who buy or lease an eligible Zero Emission Vehicle (ZEV).

Which ZEV’s qualify?

  • Battery-electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles are eligible for an incentive of $5,000
  • Shorter range plug-in hybrid electric vehicles are eligible for an incentive of $2,500

How Do You Access This Incentive?
The purchase incentives for zero-emission vehicles will be applied at point-of-sale (i.e. at dealerships or online) directly on the bill of sale or lease agreement of eligible vehicles purchased or leased. Your dealership will be responsible for completing the documentation required to receive the incentive. The federal purchase incentive for zero-emission vehicles will be applied in addition to any provincial zero-emission vehicles incentive offered.

Sound interesting? You can view the information on this exciting ZEV incentive initiative here

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Health Spending Accounts – Does Your Business Qualify?

CRA has noticed several businesses improperly claiming deductions related to Health Spending Accounts (HSA), and it is now starting to review for proper usage. If you are considering using a HSA be sure that you qualify. Here are a few tips to assist you to evaluate suitability and eligibility:

What are HSAs?
HSA’s are self-insured health plans arranged by employers for their employees residing in Canada. They provide a way that small businesses can provide tax-free health and dental benefits to their employees (and their employees’ family members). This makes the HSA appear to be an extremely attractive and cost‑effective way of getting and providing health and dental benefits. However, a valid HSA plan must conform to private health service plan rules set out in the Income Tax Act. 

What HSA’s Are Acceptable?
Incorporated businesses, including shareholder employees and all other corporate employees, are eligible to participate in an HSA. Corporations with as few as one employee can be eligible as well. However, the HSA cannot be solely for shareholders unless the shareholders are also employees earning a T4 income.

In the case of unincorporated businesses or sole proprietors, the owner and their employees are also eligible if the owner has at least one arm’s-length employee.

If the business is a sole proprietorship with no arm’s-length employees, the CRA does not consider a HSA to be a private health services plan and any costs incurred for amounts paid to this account are not deductible business expenses.

Do you think that a HSA might be a good fit for your business?  It’s always a good idea to review all the qualifying criteria with a qualified Certified Professional Accountant.  Contact us if you would like to book a meeting to discuss utilizing a Health Spending Account for your business.

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Is All Employer Provided or Reimbursed Clothing A Taxable Benefit?

The short answer – no.  CRA does state that there are a few exceptions in which clothing, clothing allowances or reimbursement are NOT considered a taxable benefit.

Your employee does not receive a taxable benefit if either of the following conditions apply:

1) You supply your employee with a distinctive uniform (distinctive being defined as a uniform would not be typically worn in settings other than work) they must wear while carrying out the employment duties
2)  You provide your employee with protective clothing (including safety footwear, reflective vests and safety glasses) designed to protect them from hazards associated with the employment.

If you reimburse or pay an accountable advance to your employee to buy uniforms or protective clothing and require receipts to support the purchases, the reimbursement or accountable advance is not a taxable benefit if:

  • the cost of the uniforms or protective clothing is reasonable
  • by law, the employee must wear the protective clothing on the work site

Therefore, an employer reimbursement of safety footwear would generally not be considered a taxable benefit. However, a reimbursement of clothing expenses meant to compensate an employee for increased wear and tear on clothing that does not meet the exceptions – that would generally be considered a taxable benefit.

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CRA Focus Areas to Note

  • Indirect Income Verification: Testing and Assessing

CRA has stated that it is ramping up its Indirect Income Verification (IVI) testing and assessing when initial reviews seem to indicate that an individual appears to have more income than that year’s tax return shows.  So, it’s important to ensure that you are capturing, or accounting for, all your income streams in your tax return or you be the focus of an IVI testing or assessment.

It appears that this initiative is bearing fruit for CRA as they claim 36% of the small to medium businesses tested show some discrepancies in reporting and 20% of those are enough to become the focus of a full assessment by CRA.  A full assessment is a through investigation requiring verification through bank statements, credit card statements and receipts reviews.

  • Limited Reviews of Line Items

This practice has been a trend within CRA for the past year or so. Basically, the CRA selects a line item on the tax return form and randomly selects businesses upon which to conduct a review of their details on this line item.  So, if you have not been crisp and comprehensive in your bookkeeping, documentation and receipt collection, you could find yourself having to produce proof that your return calculations are accurate. If you are unable to do so, the outcome could range from a disallowance of claimed costs to a thorough assessment of your entire tax return for that year and perhaps even additional years. A staggering 40% of those who are selected for a random review proceed to an additional assessment by CRA. Save yourself time and stress, do it right the first time and keep all your records and receipts!

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Welcome to Our Latest Team Member!

Julie Herbacko – Executive Assistant – We would like to extend a warm welcome and introduce the newest member of our team to those of you who did not meet Julie at the reception desk during this tax season.  Julie is the first face you see upon entering KMPC and the welcoming voice on the phone when you call our office. Her background working in fast-paced business settings, along with her outstanding customer service skills and attention to detail make Julie a valued member of our team. Welcome aboard Julie!

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Do You Have A Topic Idea?

We would love to hear from any of our KMPC client family on topics that YOU would like to see as the focus for a future blog/article/newsletter.  Over the summer we will be creating our editorial calendar for the next year and we would really like to include topics that cover a range of interest.  If you have a suggestion or idea, please email it to us at admin@kmpc.ca .  Thank you!

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Summer Hours

Please take note of our special summer hours, effective immediately:
Summer Business Hours are: 9:00 am – 4:30 pm Monday to Thursday
Please note that we will be closed Friday’s from June through August.

The entire KMPC team wishes you and your family a fun and safe summer season!

KMPC: Outstanding Chartered Professional Accountant, Bookkeeping and Tax Preparation Services

The KMPC team specializes in helping companies grow via strategic financial management practices. Since 1993, KMPC 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.

KMPC– Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – Local: (905) 666-5071 – Email: admin@kmpc.ca  Web: https://kmpc.ca

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