Virtual stores are the emerging trend, as they are an easy way to do business without the need to have a physical store. With a virtual shop, one can reach out to a broad audience beyond the location of the store. However, while chalking out a plan to operate an e-commerce business and sell online, one needs to adhere to tax compliance in Edmonton with the various provincial and territorial regulations.

These regulations enforce even though the store does not have a physical address in other provinces in which it sells. Furthermore, the online business owner needs to be aware of the rules and regulations associated with distributing products in different parts of Canada. Various provisions may apply in regions for e-Commerce, online sales contracts, or other online sale transactions and advertising.

Here is a brief rundown of the points to keep in mind while running an e-Commerce business in Edmonton.

Additional Provincial Registration

If you do business with clients outside your registered province, it's a must to register your business in their land or territory of residence as well.

Incorporation

Like any other physically existing business, an e-commerce business needs to be incorporated to protect the shareholder's assets from facing any liabilities. For this, it is recommended to consult a professional entity regarding the structure and incorporation, federally or provincially.

e-Commerce Sales Tax

One of the significant challenges e-Commerce sellers face is understanding of tax compliance in Edmonton for sales tax regulations. To understand the concept of sales taxes, we need first to know what they are. In layman language, sales taxes are the additional amounts you collect from your customer and remit them to the government.

It is not an additional tax on your income, and it is not a charge either; it is something that could be more of a temporary possession which is returned to the government eventually.

Sales Tax Implications for eCommerce Sellers

Similar to other countries, Canada imposes a sales tax on products shipped to Canadian consumers. Sales taxes levied on a federal and provincial level. It is an amalgamation of state and provincial tax jurisdictions.

Some provinces have harmonized their sales taxes in compliance with federal sales taxes (hence, the name HST – Harmonized Sales Taxes).

In a nutshell, an e-Commerce company will need to register to collect sales taxes from Canadian buyers if all of the following are true:

• You are deemed to carry on business in Canada
• You are selling taxable supplies
• You are not a small business supplier

Canadian Income Tax Implications for e-Commerce Sellers

In general, your business is considered resident for tax purposes in Canada if:

• The corporation was assimilated in Canada.
• The mind and management of the establishment are in Canada (i.e., directors or shareholders reside in Canada).
• The company is well-established and permanent in Canada (i.e., a fixed place of business).

Additionally, if your selling earns income from business carried in Canada, you will have to file a Canadian income tax return regardless if you are a small business supplier or not.

Canadian Controlled Private Corporations (CCPC) is subjected to a low of 14 -17% rate on the first $500,000 income.

The combined federal and provincial tax rates for non-resident companies vary from 25-31% regardless of the amount of income.

Most tax treaties absolve companies from paying taxes if the corporation does not have a permanent establishment (i.e., a fixed place of business) in Canada.

Necessary Tax Returns

If you are a non-Canadian corporation that carried business in Canada, you will be required to file a T2 tax return along with Schedules 91 and 97. If you are claiming protection under one of the treaties, you will need to specify sections of the agreement on those schedules.

Non-resident sole proprietorships will have to apply for an Individual Tax Number (ITN) to file their business income. Forms T1 and T215 will need to be completed and submitted to the CRA by June 15th of every year.

Canada – U.S. Tax Treaty

Those e-Commerce sellers who don't have a permanent establishment in Canada or the U.S. are subject to the protection by the U.S. – Canada Tax Treaty.

Canadian e-Commerce corporations selling in the U.S. with no permanent establishments fill forms 1120-F and 8833. Corporations require an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to file their returns.

On the north side of the border, U.S. e-Commerce corporations selling in Canada will fill forms T2 and Schedules 91 and 97. A corporation will need a Business Number (BN) to file their tax returns with the Canada Revenue Agency (CRA).

Tax Compliance

For selling items to an out-of-province consumer, it is critical to understand how and when to charge sales taxes (GST, HST, and PST). In an ideal scenario, an e-Commerce platform should be set up in a way that automatically adds the precise amount of tax. Make sure to test the system, ensure that the system is up-to-date and verify that it is accurately set up. Business owners who sell online in other countries are essentially operating a multinational company. The more your company gets involved in the land of destination, the higher tax obligations and complexities arise.

What we have given here describes basic rules and considerations of e-Commerce taxation for Canadian and non-Canadian sellers. Your situation can be different, so consult with the experts to meet tax compliance in Edmonton. Approaching a competent tax professional of your choice is wise.

If you are operating an e-commerce business in Edmonton, run it under the right business structure. Make sure to know your sales and income tax obligations within and outside the country. Also, utilization of technology should stay on top of your business checklist.

We recommend you rely on knowledge, trusted advisors, and your primary business acumen to navigate through tax compliance challenges.

Book a free consultation today to know more about your way with taxes and their impact on your business.

When it comes to operating a restaurant business, there are a lot of factors to consider to keep the business running smoothly.

Managing your restaurant accounts can be one of the hardest parts of running a restaurant as well as the deciding factor between success and failure. From creating cash-flow projections to applying for loans, managing the financial aspect of your restaurant can sometimes feel like a juggling act.

When you are starting a new business or prepping your taxes for the coming year, hiring an accounting service may be on your mind. Even the most business-savvy restaurateur could require an accountant to help handle the ins and outs of his restaurant’s finances.

If you are skeptical of the importance of accounting for your restaurant, this overview will help you understand its benefits for your business to thrive. Read along and find out how!

Ensures Compliance with State and Federal Directives

With constant law changes regarding sick leave, termination of employment, new hire reporting, health insurance, and more, it is nearly impossible to keep up with the federal and state laws for restaurants. ATS Accounting provides back office support in addition to offering payroll services. The company provides accounting and human resources management that offers clients a full suite of services that often intersect.

A full-service accounting firm understands the state rules and regulations regarding payroll services, tax-breaks, insurance, etc. They are also aware of how the latest amendments affect restaurant costs. Assessing for fines and fees due to recent law amendments is one less worry that restaurants need stress about when they outsource their accounting to a restaurant accounting firm.

Creates Cash Flow Projections

A cash-flow projection is a formula that estimates your budgeted revenue after expenses (total revenue – total expenses = projected cash-flow). For new restaurant owners trying to master accounting, creating cash-flow projections can be challenging. Still, this is a necessary part of financial planning and will aid you to keep your restaurant on a budget.

Helps in Processing Payroll Transactions

Your employees are the engines of your restaurant; therefore, it's imperative that you keep them happy and paid. When it comes to payroll services in Edmonton, there's more to consider than just wages and time tracking. You should also ponder over deductions, benefits, overtime payments, payroll taxes, and more.

Applicable deductions might include income tax, your share of your employees' contribution to the Canada Pension Plan, and employment insurance. To accurately calculate each employee's income tax deductions, require all workers to provide their Social Insurance Numbers (SIN), and fill out a separate Personal Tax Credits Return Form, or TD1.

Though paying employees may seem like a simple task, but it is more complicated than you might think. Some of the details you'll need to iron out include:

• Choosing a pay period
• Determine how payments will be made
• Properly classifying employees
• Withholding taxes

It can be a lot to keep up with, which is why many restaurant owners outsource these tasks to an accounting firm that offers restaurant bookkeeping services, including payroll services management.

Maintains Accuracy in Holding Accounting Records

It is critical to maintaining up-to-date financial records. Not only it helps monitor how much revenue is flowing in and out, but it also helps your restaurant survive should you ever face a CRA audit. If you aren’t experienced with managing the logs, consider seeking help from an accounting firm. Additionally, most accounting firms also keep track of the inventory, manage payroll services, and run sales reports.

Provides Sound Advice for Your Business

Many restaurateurs have backgrounds in the food industry but may not have experience in finance. It is wise for such entrepreneurs to outsource their accounting tasks to professionals.

Hiring an accounting service in Edmonton is often about bringing a new perspective, one with years of experience that suggests viable paths to business growth. An accounting service helps you plan your target goals and look out for financial tricks that would reduce your expenses. Your accountant offers insurance advice, find ways to trim costs without lessening quality, help you evaluate menu prices, and even research your business potential for expansion.

As you and your employees work hard in the day-to-day aspects of the business, your restaurant accountant can take a step back and see the forest for the trees.

Gives Tax Advice and Help in Auditing

Many restaurant owners approach an accountant when it's the tax time, and indeed, that's a service your restaurant can consider an accounting service for. Not only your accountant makes sure your restaurant is in compliance with federal and state tax laws but helps you plan throughout the year so that your deductibles go smoothly by the time the tax season approaches.

If a restaurant is audited, whether for taxes or during the bank loan process, restaurant accounting services also assure the auditor that the business’ financial documents are precise and up-to-date.

By understanding what an accounting firm does – and knowing what to look for in a restaurant accountant specifically, you can hire a great fit for your business and set your restaurant up for success!

ATS Accounting has licensed agents who work exclusively with all business owners. Our team of dedicated agents knows the specific risks restaurant owners may face and help ensure your business is protected with the right policies and coverage limits.

Ready to get started? Click here and get in touch with us today!

Nearly every small business emerging with a new idea to bring something better for the market has seen a gradual progress. Earlier, it might have been a cakewalk managing accounts of a marginal quantity, but as it grows more significant, accounting becomes exponentially complicated. There are many things an accounting firm offers which not only reduces workload but also saves you a lot of cash with suitable return policies and tax exemptions.

If you are an aspiring solopreneur, an accountant can help you manage your finances efficiently. In some situations, this means the difference between success and failure; while in other conditions accounting in Edmonton keeps you on the right side of the law. It ensures you stay in the best financial position possible.

Hiring an accounting firm in Edmonton shouldn’t be seen as another overhead expense but rather be considered a healthy investment and here’s why!

Saves Time

Nowadays, there are a lot of things you, as the owner of your company, are already burdened with. You may not necessarily have the time or the expertise to look into all matters of the company. With so many tasks to perform and ideally to have a healthy work-life balance, it is a task to find enough hours in the day. However, there is one area of business management that needs and hence consumes more time than most: finance. Accounting is one of the most critical sectors of the company that decides your company's financial status.

Accounting tasks include responsibilities like bookkeeping, recording receipts, tax returns, and settling financial targets. These tasks are imperative to business success and growth but are also time-consuming.

Hiring an accountant for your small business allow you to delegate these time-crunching tasks. It lets you focus on other important matters like growing your business and having an excellent work-life discipline.

Tax Experts That Give Sound Advice

Tax returns seem pretty straightforward, but they aren't. There are multiple ways to reduce your tax bill. Consequently, methods can be utilized on a tax return and run throughout the year. As a small business owner, it is unlikely you have the time or expertise to use these methods, yet their ability to reduce costs can't be underestimated.

An accountant is a professional that knows the ins and outs of the system. If there is something they are good at, it is saving money because that’s what they are meant to do.

Accountants help slash your tax bill and free up money. You may either invest the saved amount in your business or yourself.

Helps You Manage Your Financial Assets

How to manage the assets in your business? Do you know what all the assets are and their worth? Do you efficiently account for your business assets including profits, losses, credits, and debts? If not then hiring an accountant helps you with this.

Keep Costs Down

If you were pondering that an accounting firm rips you off your pockets, you might not be aware that they do the opposite. They not only save tax money but also save money on other aspects of cost-cutting for the company.

An accounting firm also takes care of the unnecessary expenses and keeps track of all payments, thus preventing any discrepancies, mistransactions, or fraud in the company.

An accountant won't forget about expenses such as regular payments to be made to suppliers or lenders. Amounts that you haven't reviewed in a while, but accept as an expenditure. The accounting firm vigilantly monitors these expenses, ensuring you aren't ever overpaying for any resources.

Maintains Punctuality to Avoid Delays

If your business involves numerous transactions with clients, suppliers, lenders, etc., outsourcing to an accounting firm is the best way to manage everything.

You can always rely on ATS Accounting for your accounting requirements. ATS Accounting serves in Edmonton and surrounding areas. It makes sure each supplier gets paid on time the exact amount. This not only keeps things on track but also maintains professional relations. They also make sure nobody is overpaid, and the collections of payments from clients are done on time and in a professional manner.

Saves You from Legal Anomalies

There are multiple legal hurdles when it comes to managing an organization. An accounting firm keeps track of all your activities and transactions in systematic order in case of a legal dispute. Many times, you are not aware of a specific law that has come into effect; an accounting firm makes sure no such things take place, and the company faces no legal complications.

Offer Financial Counselling

If you thought an accounting firm was all about managing transactions and bookkeeping, it isn’t true at all. A proper accounting firm helps you flourish your business by offering financial advice which is beneficial for your company. The firm helps you with cost-cutting and help surge your growth offering long-term benefit advice.

Help in Business Planning

Whatever goals you are planning to achieve for the growth of your business, there will be financial implications. You can even face regulatory issues, such as employment law or obligations from the Revenue. An accounting firm benefits you by letting you tackle these issues confidently irrespective of whether you are expanding, developing a new product, diversifying, downsizing, selling, or winding up.

An accounting firm lets you do what you do best. It takes care of managing your accounts so that you can focus on other critical areas of your business. The relationship between you and your accountant should not be underestimated either. Your accountant is there to answer your queries, and because they know your business' potential, they give you informed opinions. Also, they are good sounding mediums for business propositions, plans, or financial decisions. Having somebody that you know and trust at the other end of the spectrum is invaluable.

If you would like to find out more about how an accounting firm helps your business grow, contact us or book a free consultation today!

The survey conducted by the software giant Sage reveals some interesting facts about accounting services. Around 71% of businesses outsource their accounting services. A total of 55% decision makers agreed on the necessity of accounting service. Only 10% said that they don’t need the accounting services. The survey was conducted mainly in the SMB (small to medium businesses) sector.

Saves on Effort and Time

As an entrepreneur or a manager, your time is invaluable. You need to focus on your core tasks like- to manage your company’s growth, keep an eye on the cash flow and seek more opportunities. Instead of going through the monotonality of transactional paperwork, you would be better off pursuing your business goals and implementing strategies. The accounting firms would take care of the painstaking task and record each of your business transactions meticulously.

Act as Trusted Business Advisors

When it comes to integrity, accountants undoubtedly have a better reputation than any other business advisors. About 44% of business owners seek the advice of their accountants prior to considering any other advisor. Around 50% of business owners believe that accountants provide them the most valuable advice of all their personal and business acquaintances. To give you a fair comparison, only 2% of the entrepreneurs consider other professionals like bankers and solicitors to provide them with the most valuable business advice. 15% of business owners claim that they are more transparent and honest with their accountants even in comparison to their family and friends.

Maintains the Accuracy Levels

A professional accountant would be more competent and experienced to handle your records. They can detect and prevent fraudulent transactions. You don’t want to bring the ax on your own feet by incurring losses due to inaccuracies in your record keeping. The accounting firms may also have a separate team for audits. The professional approach would minimize inaccuracy, prevent manipulation and fraud. Your financial records would truly reflect your business success.

Let’s You Find Your Work-Life Balance

One may not guarantee success or failure in business. One thing however you can be sure of is that you have to slog like a mule. To maintain your work-life balance, you must learn how to delegate your tasks. By nature, entrepreneurs are poor managers and organizers. No wonder, there are a lot of entrepreneurs who have ADD (attention deficit disorder). These people though being creative and talented are disorganized and have poor management skills.

Entrepreneurs should outsource their accounting requirements similar to the way they delegate managerial tasks to their managers. The accountant firms would take care of the tedious tasks whereas the entrepreneurs would be able to maintain their work-life balance. Proper maintenance of your work-life balance will improve your personal relationships. The improvement in your personal relationship will act as a feedback loop. The positive vibes from your relationships will end up enhancing your morale and inspiring you to achieve even more.

May Help You in Business Networking

The accounting firm you have hired may introduce you to your potential vendors, investors, and clients. They due to their knowledge, experience, and insight may help you to find perfect business associates. Due to their vast network, they might also help you locate and recruit suitable employees.

Provides Insights

The accounting firms can analyze the data and provide you insights, which may help you to transform your business. The insight may help you to improve your business in multiple ways. You may come to know about a neglected sector which could potentially increase your profits. Similarly, the analysis reports may shatter a perception about a business segment which in reality might not be as profitable as perceived initially. The analysis may provide you statistics to arm with during your meetings with vendors, prospects, clients, and investors. The data stored in your computers is of no use unless you let it work for you. If you want to build your business, you cannot ignore analysis. Proper usage of the insights provided by the accounting firms may empower to take your business to new heights.

May Help You with a Business Plan

Due to their experience with other entrepreneurs and businesses, they might be able to share stories which are relevant to you. Whether it is a success or failure saga, you can certainly learn from it. Intelligent people don’t just learn from their own mistakes, but they learn from others as well.

Moreover, you can pluck the ideas implemented by other entrepreneurs and use them in your business. If you are getting stuck with your strategies, then it would be a good idea to discuss it with your accountant. Expert professionals from accounting firms may clear the clutter in your plans and build a roadmap for success!

Tackles Tax-Issues

The accounting firms stay up to date with all the relevant tax laws, rules, and regulations. The tax rules and regulations change frequently. You cannot afford to invest time and effort to stay on top of every new regulation. The accounting firms keep your business compliant by ensuring proper actions as prescribed by the rules and regulations. It would be wise to let professional accounting firms tackle your tax issues. They would also suggest you, ways to save on your taxes.

With 21% of small business owners admitting that accounting tasks as one of their most significant challenges, you cannot afford to ignore it. Accounting firms are necessary for your business irrespective of whether you operate as a solopreneur, small business or enterprises. The services provided by accounting firms would remove obstacles and propel your business forward.

You may get in touch with ATS Accounting INC. for any of your accounting and bookkeeping requirements. We are one of the leading accounting firms in Edmonton.

If you are a newbie in the city or just entering the workforce, you may be overwhelmed by the feeling of filing a tax return and whether it is necessary. When it’s that time of the year again when Albertans roll up their sleeves, dig out old receipts, and financial documents from the past year and fill out their tax income forms.

For those who end up with a rebate, the process could be rewarding. Whether you end up owing the government or the government owes you, tax time can be tricky for many.

Most income tax and benefit returns are due on or before 30 April 2018.

We can help you with your tax file and accounting hues. Let us explore the different facets of accounting and tax returns before filing your taxes in Alberta, Edmonton.

Filing Taxes

You must file a personal tax if:

- You are self-employed and have pension plan premiums due. Also, you are required to file if you are paying employment insurance premiums on your self-employment earnings.

- You and your partner wish to split your pension income.

- You are participating in the Home Buyer’s Plan or Lifelong Learning Plan with repayments due.

- You disposed of the capital property. If you sold your home, you must file a tax return even if you don't wish to pay capital gains tax on the sale (principal residence exemption).

- Whether you are 9 or 90, age does not influence your requirement to file a personal tax.

- Students are not exempted from filing either. If your 21-year-old child is an entrepreneur who makes over $3,500 (after expenses) running a small business, they must submit a personal tax even if they're still in school.

While filing your taxes is a yearly tradition, the government makes few amendments to tweak its tax policy. Here are a few things the Alberta government has altered for 2016:

- Increased Alberta non-refundable tax credits to counterbalance inflation

- Lower-income families with children under 18 years of age qualify to receive the Alberta child benefit as of July 2016.

- Individual income tax rates have changed for taxable income over $125,000, $150,000, $200,000, and $300,000.

- The Alberta overseas employment tax credit has been obliterated.

- The rate used to calculate dividend tax credit for non-eligible dividends has reformed.

How to File Your Taxes?

You can fill your tax form online, on paper, or by phone.

Stages of Filing a Personal Tax and Benefit Return

Stage 1- Collect all your information and relevant documents that display your income, and that support any deductions and accounting credits you plan to claim. To fill out your return, you need all your tax information slips that show your income. You should have all your slips and receipts by the end of February. Gather all the receipts or records you will need to support any deductions, credits, amounts, or expenses you will be claiming.

Stage 2- Select the software you wish to use to fill out your details or get the general income tax and benefit package.. For ex- NETFILE is a certified tax preparation software that offers you convenient and secure way to do your taxes online.

Stage 3- Make sure all your details are up to date. Changes to your personal information such as your marital status, the number of children you have, your banking information, and your address directly affect your benefits and accounting payments. If there have been any alterations in any of the aforementioned, let the Canada Revenue Agency (CRA) know as soon as possible to ensure you get the entitled paybacks and returns.

Stage 4- Report the income you have received in the year from all sources, both inside and outside Canada. Find instructions on where to report in Edmonton an amount on the back of your information records.

Stage 5- Calculate the deductions, tax credits, and benefits you can claim. This information is required so that you can claim on your return to reduce the amount of tax you have to pay. This information can also be found on your tax return or a related tax form in Edmonton. If the information is too overwhelming at this step, it is always wise to seek professional help and let our team of experts resolve your queries.

Stage 6- Send your file to the Canada Revenue Agency. With several ways to send your tax file to the CRA, you can file it online using NETFILE-certified software or through an EFILE service provider, such as a tax preparer. ATS accounting helps in preparing and e-filing your individual, corporate, and estate tax returns at the local, state, and national levels.

Stage 7- If you filed your taxes late, your records must be secured for six years from the date the tax was filed. If there are any claimed expenses, deductions or accounting credits, make sure you store all your receipts and related documents in case the CRA asks to see them.

Tax Returns

How can I avail maximum tax returns? When do I get the refund?

You can avail maximum reimbursements in the following ways:

- Keep your transit passes

- Use your tuition credits

- Claim your student loan interest

- Claim medical expenses

- Use the dividend tax credit

- Claim utilities such as cell phone and internet expenses

- Claim your work expenses such as conveyance, uniform, costs incurred on purchasing work related items

If you file your return online and choose direct deposit, you get your refund in as little as eight business days. If you send a paper return, it generally takes eight weeks to issue your notice of assessment and any refund.

Do You Need Help with Your Taxes?

With so many steps and procedures involved, filing taxes can be quite daunting. It is one activity; a person must experience to get their hands-on with managing their finances and accounting.

Managing all your tax deadlines, including payroll, corporate, sales tax, and more, can be a big job that diverts you from other things you have to do to run your business. We take pride in staying on top of these deadlines for our clients, so you don’t have to stress about them. We prepare and file the tax returns that are required for your business. We’ll look hard for every deduction possible, discuss with you your options, and perform your tax compliance work accurately and on time.

Are you still indecisive? We have made it risk-free for you. Now you can book a consultation for counselling, controller, taxes, and accounting related queries.

Is it time to hire an accounting firm to help you manage your business finances? You’ve been running the business on your own and occasionally employ an accountant to fix the books when it seems you can no longer take the pressure of keeping the balance. But is this practice something you’d like to keep on doing? Have you ever thought of the money you could lose when time and again your books don’t seem to find balance when they should?

Hiring an accounting firm to take care of the books as well as the finances of the business might do you better. It might save you a lot of costs in the long run. With the right people doing the funds of the company, you are sure that it is kept intact and the books in a balance all the time. In particular, hiring an accounting firm can benefit you in the following:

Can Give you More Time to do Other Important Things

Unless you are an accountant yourself, it is best to hire professionals to do it. When you delegate the task, you bring in more time for you to take care of the other parts of the business. The launch of that marketing campaign has been put off for months and now is the best time to review it. Focus on the work that you can do best and let the accounting firm in Edmonton take care of all the rest.

Can Make your Office Space More Cost-effective

When you hire an accounting firm, you are getting all the expertise that the team can provide. Compared to hiring only an accountant, you will be paying for something more cost-effective, not to mention that they can genuinely finish that job that you need them to.

Can Provide you with Quality Assurance

There is nothing more important than getting your money’s worth. The accounting firm that you hire should not only provide you with one service that they are known for but an overall package of what can be done to help your business thrive – including ways on how to save on taxes.

Can Consult with the Best in the Field of Accounting

Although most accountants are skilled in handling money and finances, it is different when you’ve been doing it for years. The expertise will help you run the business and make it a success. When you know where your money is going, you can quickly focus on the other things where your expertise is needed more.

What do you get from hiring an accounting firm? You get peace of mind that your business finances are not all over the place. The experts will take care of it.

Only businesses with a well-managed payroll system can genuinely find success. Whether it is a small-scale business that’s just starting up or a middle-sized one that’s thriving despite the competition, every business owner must see the value of having a well-maintained payroll system to help them solve for anything else concerning the business. When a method to pay off the employees of the company (whether there’s only one or less than ten), it takes your mind off worrying whether you did it right or not.

There are four types of payroll systems that you can choose to adapt for your business. The choice of whether you go for this or that is a matter of personal preference. However, expert accountants usually base their decision depending on a variety of factors including the size of the business and the number of its employees. Now, which of these systems should be your choice?

Payroll System Managed Internally

When you have less than ten employees, it would be best to have the payroll system managed internally. With the limited number of employees, you can easily keep track of the payments made including the deductions as well as the amount of the other social security benefits. The goal is to keep discrepancies to a minimum to none at all. When the payroll is managed internally, you don’t have to worry much about now knowing if everyone has been paid. You may hire an accountant to do it for you privately as a resource.

Payroll System Managed Professionally

This is the system when the bookkeeper or a certified public accountant is hired to look after the company’s payroll system. Not only do these professionals help you manage the system but they also look after the financial status of the company. They can ensure that all transactions involved in the business including bank withdrawals and deposits are managed well. This system is perfect for medium-scale to big companies.

An External Payroll Agency Manages the · Payroll System

This is the type of system when the company does not have hold of its payroll system. Instead, it is entirely managed by an external payroll system. The payroll company handles all the responsibilities that come with it including salary deposits and other deductions for the month. One of the best things about this type of payroll system is that it is handled with complete objectivity with very little to no discrepancies at all.

Payroll System Managed by Software

This is perhaps the most popular form of payroll system wherein the complete payroll list is input in a software. You only need to manage it from a portal. It is convenient because there is no need to solve anything. You have to make sure that everything is in the software and it will take care of the solving for you.

If you wish to learn more about how each system works and how it can benefit you, it is best to talk with a qualified accountant. Their professional opinion will help you make the right choice.

Are you looking at applying for a bank loan? When the start-up business becomes a struggle, it does not mean you should stop. Sometimes, you need to be creative in getting the money you need to keep the company running. Applying for a bank loan is one of the most common ways to get the business going. But how do you manage to get a loan approved for your business?

Taking on a loan from the bank is not easy. In fact, it comes with a lot of responsibilities that you need to be prepared for. The bank doesn’t easily give away their loans, even to those people who already have their start-up business up. The bank will be looking for ways you can grow the money to ensure that they get paid.

So how do you get loan approval from the bank? Here are six tips you can try:

Tip 1: Prepare a Business Plan for the Bank and Yourself

A business plan contains your concept of business as well as the focus points that you are working around in. The strategy of the business plan is to reassure that bank that you know where your business is heading. Not only does it highlight the operational program for the company but it also includes the executive strategy that affects every other decision you make for the business. Be as detailed as you can be. The bank will appreciate it and will lend you the money you need.

Tip 2: Make a Financial Plan Ready for Submission Too

The bank will ask you for a financial plan to ensure that you know what you’re going to do with the money. The details of the financial plan should be precise. When they give you the money that you need, how are you going to use it? How is it going to make the business plan work? The operational costs, administrative expenses as well as the revenue model should all be in that financial plan you are to prepare.

Tip 3: Only Apply for a Loan that you can Afford

The best way to not be approved for a loan is to apply for too much money. You should only apply for the amount that you can pay. Remember to always look at things from the perspective of the lender. The bank will look into your business plan, your financial plan as well as the application you submitted. From there, they will decide whether it is feasible for you to pay off the loan within the period they prescribe.

When it comes to getting a bank loan, you need to be more careful of your perspective. In managing your accounts as well as your application, it is best to consult with a trusted accounting firm in Edmonton. They will help sort things out for you.

When you started your business, you had to shell out a right amount of money to get everything in place. But that is not where the spending ends. Business operations don’s come for free. In fact, the cost of running a business can be quite overwhelming when you’re just starting out. The expenses usually cover the marketing, salary, overhead expenses, manufacturing, and the list goes on and on. Although each business comes with its own set of costs, there are everyday expenses that remain true for all.

Efficiency in the payment of these expenses is the key to genuinely gaining profit for the business. In fact, when you pay these bills on time, you are also able to reduce the amount of tax that you spend. Here is a list of the most common expenditures that a business owner must anticipate and prepare for.

a) Rent – most businesses set up in a tangible place, although selling online has become a popular option these days. Whether it is at home or a commercial space, you need to think of paying the rent and how much it will cost you monthly. Whether it is a leased property or a mortgaged one, you will need to consider the rent payment every month to ensure that it doesn’t pile up and become too big for you to pay off.

b) Administrative Costs – aside from the location cost that comes monthly, there are also other expenses that need to be considered like the cost of administrative personnel and utilities. The cost of the electricity, the phone, the internet as well as the salary of the people who help run the business while in the office should all be added to the overall costs. Whether you have a small or big business, these overhead expenses need to be considered in the monthly accounting.

c) Payroll and Benefits of Employees – these make a huge part of the business expense monthly. Apart from the usual payroll system that the company needs to follow to get the employees paid, there are also several types of benefits that every employee must get while working under you. All these could be overwhelmingly large, but they have to be paid to get the business going.

Every business aims to earn a profit and maximize it to help the company grow. Giving substantial attention to the management and payment of these expenses should help increase profit. Consult with a taxation and accounting expert to make sure that you are on the right track in handling your costs.

The primary goal of every business owner is to succeed. And to succeed in business means to be able to establish a steady flow of cash in their account. When they spend money to pay for the overhead expenses including the salary and benefits of their employees, they also expect money to come in to consider as profit. The risk of running a business will always be there. You can never tell when you will need immediate cash. Without immediate payment meant losses for the company.

The money you borrow from financial institutions or lenders could help you at the moment of need, but the interest they come with means expenses at your end. Is it possible to avoid such cashless moments? There are a number of things that can be used to keep yourself from being in that position when you don’t have a choice but to borrow money and pay for the interest. The first step is prevention. Work closely with a trusted accounting firm in Edmonton, and you don’t have to worry about finances. You know your business is in good hands.

Apart from that, here are three business decision mistakes you must avoid to keep your business thriving:

- Going for an extended credit period could mean more losses for the business. The length of time you want to go for to cover your loan payment may seem like you’re paying the creditors less each month. However, what most business owners fail to realize is that the interest rate they are paying for I much higher considering the length of time they took the loan for. If applying for credit to cover expenses could not be prevented, at the very least, make sure to pay it off at the shortest time possible.

- Putting off the updating of the books is one of the worst things that a business owner could do. Reputable accountants in Edmonton would always suggest that the books be updated with every transaction. The risk of forgetting to put in the books the expenses as well as the payments received will still be there. These mistakes may seem simple, but they could alter the books altogether. Recording all transactions when they happen should always be the goal.

- Paying off debt too early than the scheduled payment is not going to help at all. The interest that you’ll be paying for that credit is the same. Paying too first means not having the power to use the money and grow it in business. If your goal is to reach success, then you should be working hard to avoid obtaining debt at all.

When it comes to achieving a steady cash flow, business owners can’t help but take risks and sometimes commit mistakes in the process. The more important thing is always to try to avoid the mistakes to keep the business afloat.