WHAT SMALL BUSINESS OWNERSSHOULD KNOW ABOUT

ACCOUNTING BY

ACCOUNTING

• Everyone needs to do accounting• Keep track of who owes you how much and

when• Not just the job of accountants but business

owners as well

ACCOUNTING

30% of small businesses do their own accounting70% do accounting at tax time50% have receipts stuffed in shoe boxes

ACCOUNTING

• 30% of small businesses do own accounting• How much is your time worth?• Costing yourself money• How?• Bill own time at $50/hour• $50*8 hours/week= $400/week of own time

doing own accounting

ACCOUNTING

• $400*52= $20,800 per year =$56.98/day spent on doing own accounting with no extra pay

• $20,800 coming out of gross sales to pay for own labour and no tax deduction

ACCOUNTING

Have client who before we met, did her own books and other duties was on brink of divorce. Due to her spending too much time at the store and almost had a heart attack.Now she is my best client, I do her bookkeeping and taxes, she now enjoys life, reconciled with husband of 15 years + 3 young children.

ACCOUNTING

What would you do with that extra time?Would it benefit you if I could save you time and money?Do you know your cashflow situation?Accounting not rocket science, but time consumingWhere is your time better spent?

TAXES

Paying too much tax?Want to keep more of what you make?

TAXTIPS

Vehicle expenses write off using kilometres driven for businessHave 2 cars write off even more!You have 1 car spouse has other Switch and use 2nd vehicle for business and have more write offs

TAX TIPS

Use an abstract to keep track of km’s and destinations

Really useful in case of auditReally hard to disprove expenses

Get it in writing when contacting CRAHarder to disprove deductions when this is done

Keep receipts!

TAXES

Normal to be asked for receiptsCRA is now asking for tax returns to be e-filedKeep all receipts in case CRA asksRecently had client ask me to help with corporate tax returnTried to do it themselves but found it too stressful!

ITEMS THAT WILL GET AUDITED

RRSP contributions very commonTaxpayers frequently over contributePenalized for every dollar over $1,500 RRSP limit for tax yearRRSP limit is 18% of net income:Self employed people like to make no money on paper but this will catch upNo income = no RRSP deduction

TAXES: AUDIT

AUDITVehicle expenses

CRA’s favourite expense target is vehicle expensesSmall business owners typically do not keep receiptsNo receipt = deduction taken away = more $$$ to tax manPhotocopy is just as good as original

AUDITMEALS & ENTERTAINMENT

Another CRA favourite targetHiring clowns for child’s birthday party not tax deductible.Taking spouse out for meal not tax deductible50% tax deductible and must discuss businessTake friends and spouse, discussBusiness, write it on back of bill

Next Step

See me afterwards for a FREE confidential consultation appointment at your

convenience . Connect with me on linked in

289-500-1978Mathew.jazenko@accountingprofessionals.ca

Linkedin: ca.linkedin.com/pub/mathew-jazenko/16/972/446/