Business Matters June Edition

July 13, 2017

Dear Client:

Click here to read the June edition of Business Matters.

The first management article is titled Cannabis 101. Effective sometime in 2018, decriminalization and “controlled” distribution of marijuana will occur. Hopefully this will have very little impact on your business but if you think it will – read on.

Five finger discount is the second management article. Anyone in a retail business will be familiar with this term. Good discussion concerning ways to deter shoplifting in your business. Don’t forget that employee theft can also be a significant issue. This has been discussed in previous articles.

There are few things in life (money-wise) more enjoyable than receiving a tax refund cheque! Of course, we know that the cheque is simply a refund of our own cash but still it’s a good feeling. The taxation article is all about how to reduce or eliminate interest free loans to the government. Read on if you have been receiving refunds and want to keep more money in your bank account during the year.

Using technology tools to Connect for Profit is a definite must these days for many retailers. This article discusses using Wifi for marketing and collecting data on customers (which in turn is used for marketing). Brief but interesting.

That’s it!  Have a great summer!

We are back at 240 Main Street on July 21, 2017. Check out the “new” building under the tab Fire Update or pay us a visit in person. It’s always great to see you

Yours truly,

JIM M. SMITH CHARTERED ACCOUNTANT INC.

Jim M. Smith

Business Matters

July 13, 2017

Dear Client:

Click here to read the April edition of Business Matters (late as usual due to tax season work load).

Tax Planning

The first article discusses the importance of income tax planning for owner-managed enterprises. This is something we deal with on a daily basis. It can be very dangerous to generalize when tax planning – no two situations are identical. There are generalizations in the article. Best advice – rely on professionals who know your situation. Keep them informed and meet with them occasionally to update your tax planning strategies.

Moneysaver

Rising interest rates are a reality in the U.S. and are being talked about by the Bank of Canada. Likely, any increase will be gradual but the bottom is in as they say so an article concerning the potential effects of higher interest rates is very timely. Review all of the points listed under “Proactive Planning”, determine which apply to your situation and consider what action should be taken.

I found the Management article to be very good. All of the items listed are worth reviewing. The paragraph on page 6 that starts with the sentence “Control your business by managing rather than doing” is great. Lots to consider.

The tech article discusses passwords, specifically password management software. I think this is an area in which most businesses are a little deficient. It’s difficult to stay current with technology. It almost seems you have to pick and choose which issues to deal with at any given time. Password manager services are not expensive – that’s a good thing.

As always if you have a question don’t hesitate to contact us. We love to hear from you.

Move-Back Date

We move back to 240 Main Street in Winkler on July 21/17. It’s been great where we are but it will be even better to be back at 240 Main. It’s always good to be home!

Have a great summer!

Yours truly,

JIM M. SMITH CHARTERED ACCOUNTANT INC.

 

Jim M. Smith, C.A.

February 9, 2017

Dear Client:

It’s tax time! Click here to read the latest informative newsletter.

Taxation

The first article lists changes that may affect your 2016 personal income tax return. A significant change is the requirement (for the first time ever I believe) to report the sale of your principal residence on your tax return. The gain is still exempt but you have to report it. So, the rule basically becomes if you sell property of any kind during the year – report it! Read on!

Road Warrior/Technology

Lots of really simple inexpensive items listed in this article to keep you productive while on the road. I’m not much of a shopper but I think we need some of these things! Good article.

Motivation

This is an extremely important topic and one that is studied, discussed, written about, etc. on a continual basis. What motivates us? The article makes a number of very good points and is comprehensive yet easily understood. Well worth the read and the thoughts that will happen while you read.

Face Time

We’ve developed lots of different ways to communicate without being face to face and they all have their place but, really if it’s important, I want to sit down eyeball to eyeball. I want instant feedback and to have an immediate exchange of information.  Don’t you find that face to face can be amazingly productive?

Enjoy the rest of winter and those first few warm days of spring!

Sincerely,

Jim

 JIM M. SMITH CHARTERED ACCOUNTANT INC.

Business Matters Newsletter

February 9, 2017

Dear Client:

It’s tax time! Read our latest news article HERE.

Taxation

The first article lists changes that may affect your 2016 personal income tax return. A significant change is the requirement (for the first time ever I believe) to report the sale of your principal residence on your tax return. The gain is still exempt but you have to report it. So, the rule basically becomes if you sell property of any kind during the year – report it! Read on!

Road Warrior/Technology

Lots of really simple inexpensive items listed in this article to keep you productive while on the road. I’m not much of a shopper but I think we need some of these things! Good article.

Motivation

This is an extremely important topic and one that is studied, discussed, written about, etc. on a continual basis. What motivates us? The article makes a number of very good points and is comprehensive yet easily understood. Well worth the read and the thoughts that will happen while you read.

Face Time

We’ve developed lots of different ways to communicate without being face to face and they all have their place but, really if it’s important, I want to sit down eyeball to eyeball. I want instant feedback and to have an immediate exchange of information.  Don’t you find that face to face can be amazingly productive?

Enjoy the rest of winter and those first few warm days of spring!

Sincerely,

Jim

 JIM M. SMITH CHARTERED ACCOUNTANT INC.

Dear Client:

The last Business Matters of the year. (Click here to read the newsletter). Wow 2016 went by in a hurry! We hope that the year was prosperous and enjoyable for yourself and your staff.

Taxation

This article is all about possible taxable benefits that can arise from personal use of company owned vehicles. Remember there are two components to these types of taxable benefits - a standby benefit and an operating benefit. This is an area that CRA has devoted a lot of resources to and the rules can be fairly complex. Fortunately, the article does an excellent job of explaining the basics- read on!

3D Xpoint Technology ?

Never heard of it until I read this article. It sounds exciting, a little bit expensive to start but that will change. Don’t you just love the way technology keeps advancing! Hats off to all the techies that work hard to keep the innovations coming.

It’s time to think like Scrooge

Random ideas in this article to help your business save money. Some of them will apply to your situation and some won’t with the main point being that you should, on a regular basis, review expenses with the goal of reducing them. At a course I recently attended a very successful businessman was quoted as follows “Costs are like finger nails - they grow continuously and need to be trimmed regularly”. Ain’t it the truth.

Management

This article is all about life insurance - do you need it, if so how much? The answer to both of these questions will depend on your personal situation. Only term life insurance is discussed. Keep in mind that whole or universal life insurance should also be considered as part of your analysis. An easy read!  Remember, life insurance is not for you it’s for those around you (family, business partners/staff, charities, etc.).

That’s it!

From our outfit to yours we wish you a Merry Christmas and the very best for 2017. When the good times come may you take the time to truly enjoy them, during the hard times may you experience generosity and be able to share some laughter with those around you.

All the best,

Jim

JIM M. SMITH CHARTERED PROFESSIONAL ACCOUNTANTS INC.

2016 Federal Budget Commentary

Dear Client:

Attached here is the Chartered Professional Accountants of Canada Federal Budget Commentary.

The commentary provides an overview primarily of proposed taxation changes contained in the budget.

Of course spending was a big part of the budget.  The Commentary does not review spending proposals unless they involve payments that will be administered by Canada Revenue Agency such as the new Canada Child Benefit.

Special Note

Proposed changes to the Small Business Deduction limit will negatively affect many professionals that have incorporated their practices.  These changes are discussed on page 4.

Essentially the Small Business Deduction limit of $500,000 will have to be shared by all professionals operating as “partners” within a common practice/business.

This change is effective for year-ends commencing after March 21, 2016

As always if you have questions please contact our office.

Best Regards,

JIM M. SMITH CHARTERED ACCOUNTANT INC.

P.S. Happy Easter to all celebrating this event!

Business Matters February 2016

Dear Client:

Welcome to the February 2016 edition of Business Matters! Some very informative articles.

General

To incorporate or not to incorporate – that is often the question. This article provides a very good overview of what being incorporated means from a legal standpoint. It discusses naming a company, location of head office, federal vs. provincial, ownership, etc. The article does not provide much information about the pros/cons of incorporation. Come see us if you’re thinking about incorporating your business.

Taxation

Have you heard about crowdfunding? Very interesting article. Basically from an income tax standpoint the cash raised is either income (fully taxable) or equity (no tax). Crowdfunding is a very creative way to obtain risk capital. Word of caution – don’t go offside with securities regulators!

Management – I Hear You

This article has two distinct parts. The first part is about listening and proper etiquette when attending a meeting with a formal presenter. Yes you can ask questions (but not all the time). The second part is written from the standpoint of the presenter. A laundry list of what the presenter should do is provided – quite informative. The main point being both employers and employees have a responsibility to ensure that meetings are productive.

Technology – Dashcams

I’m thinking dashcams will become a standard feature in many vehicles within the next 3-5 years. Mass production will likely result in better quality and lower cost: Isn’t technology great! Read on.

Well that’s it for the latest edition. I see by the calendar that the coldest month has passed – and it wasn’t too bad was it?

We hope that you have enjoyed winter so far and are looking forward to those first really warm days of spring……but first February.

Best regards,

JIM M. SMITH CHARTERED ACCOUNTANT INC.

P.S. Do you know where your tax information is?

Business Matters December 2015

Read the entire issue of Business Matters.

It’s not that often that an article on personal finances starts with a discussion about New Year’s resolutions!  The Personal Finance article wants you to do a lot of reviewing.  Review your investments – unregistered, registered and RRIF.  Review your mortgage.  Invest the time to know where you are at and then plan so that you end up where you want to be.

The Technology article talks about a particular type of marshmallow.  Full disclosure – I didn’t know that Google had introduced a mobile operating device called “Marshmallow”.   I still have an ancient Blackberry.  The article is mostly concerned about security.  A good read.  Particularly note the last paragraph – do not go cheap for your business.

Taxation

There definitely are tax benefits for the self-employed.  This article provides a good overview of the types of expenses that can be claimed.  Remember to keep receipts and document how you arrived at the amount for non-arm’s wages, etc.  A great read for those that already are and those that are contemplating becoming self-employed.

The Moneysaver article also has a less than top of the list (for most people) topic when it comes to saving money – lack of sleep.  I’m not sure about the statistics quoted in the first paragraph but the article definitely makes the case that lack of sleep can result in substantial losses for businesses.  There is no magic solution to this issue, employers can’t control personal choices, but there are some things businesses can do.  Read on!

That’s it. We hope you enjoy this edition of Business Matters.  Previous editions can be viewed here on our website.

May you enjoy the upcoming holiday season and have some great times with family, friends and co-workers.

Best regards,

Jim

JIM M. SMITH CHARTERED ACCOUNTANT INC.

 

 

Business Matters October 2015

Read the entire issue of Business Matters.

Please see the above link to the October edition of Business Matters. Some interesting and very relevant material in the articles.

It seems scams of all different types are very common these days. The first article concerns fraud prevention specifically the telephone call or email from a “pretend” CRA agent. We have had several calls from clients regarding this scam. CRA DOES NOT EMAIL TAXPAYERS. Never respond to an email supposedly from CRA. If you receive a phone call that is suspicious, hang up. If the call seems legitimate do not engage in a conversation. Request the CRA agent to communicate in writing his/her request. Requests that are received in writing should be forwarded to our office for review before responding.

The MONEY SAVER article discusses tracking expenses by vehicle and is geared specifically towards trucking companies BUT the principals discussed could be applied to any large piece of equipment. A very good discussion about capturing all costs when doing your analysis. Always remember one of the golden business rules - know thy costs!

Although I’m sure that staff occasionally think that I am quite hard of hearing, our workplace is not very noisy. What about yours? If necessary do you have a good Personal Protection Equipment program in place? Everyone wants to ensure that staff work in a safe environment. Read on.

Although the TAXATION article is geared towards individuals who are making donations it is also very relevant for charitable organizations because it discusses gifts in kind and proper receipting procedures. I think most of us have some sort of personal connection or personal knowledge of the charities we support but even so this article is still worth the read.

That’s it!

The fall weather has been super so far. Let’s remember to get out and enjoy it. Any Blue Jays fans out there?

HAPPY THANKSGIVING! Have a great long weekend!

JIM M. SMITH CHARTERED ACCOUNTANT INC.