ACCOUNTING MYTHS VS.FACTS

Accounting can be an intimidating and often dreaded part of business for many entrepreneurs. To make it harder, there are many beliefs, stereotypes and false facts flying around the internet that it can be hard to distinguish the facts from the rest of the noise. But, if you don’t understand the truth of a situation, you can risk unfortunate consequences.

To help dispel some of those myths, here are four of the most common myths, BUSTED.

Myth #1: Accounting is only important at tax time.
Fact: Tax time might be the most crucial few weeks for bookkeepers, but it is certainly not the only important time. Actually, it’s necessary that you keep track of your books at all times of the year. If you stay on top of your finances throughout the year, not only will filing be much easier, but you’ll be able to take advantage of growth opportunities while mitigating risks from any source. Staying current on the books is one of the best ways to ensure continuity.

Myth #2: Manual accounting is fine. If it isn’t broke, why fix it?
Fact: Accounting software yields too many benefits to ignore. You are most likely wearing many hats, and accountant is just one of them. Bu you simply don’t have enough time. Many digital solutions are catered specifically to small business needs, which can give owners customizable tools to achieve success.

This means it is a much more efficient option than manual recording, making you more productive and giving you back some of that valuable time.

Myth #3: Owners don’t need to spend time accounting -they can give everything to a professional.Fact: Accountants should be a resource, not a catch-all. While they can keep track of the books and file taxes, they can – and should – do much more. These two tasks are basic for professionals – their bread and butter, however, is much more involved. They can act almost as consultants and small business experts. For instance, they will be able to help you with business advice, guide tax plans, ensure compliance, look into financing and credit possibilities, manage cash flow, and find ways to reduce your overhead expenses while protecting assets etc. That said, you still need to be involved firsthand in the financial aspects of your company, to understand how the business is faring overall.

Myth #4: Accounting software is simple, so there’s no need for a deep understanding.
Fact: It’s certainly true that financial programs are easy to use, but you should definitely have a working knowledge of how your company operates financially. Accountants can give you all of the advice, mentioned in Myth 3, and suggest lucrative paths, but none of it matters if you can’t make the ultimate – and correct – decisions. And you can’t make the best choices possible without at least a rudimentary understanding of how the accounting within your company works. To remedy this, take time to understand your accounting program, whether that means taking a class or simply reading the manual when installing the software.

http://smallbusinessbc.ca/article/starting-a-business-accounting-myths-vsfacts/

Investments - a long term view

Interesting article on investments.  When investing you should always be looking at the long term returns, and not flinching at short term fluctuations.

http://www.theglobeandmail.com/globe-investor/investor-education/a-five-step-plan-for-surviving-market-madness/article25421424/

Did you know...?

Did you know... the deadline for personal tax returns has been extended...

Excerpt from CRA communication:

All returns transmitted electronically up until 3:00 a.m., Eastern Time, May 6, 2014, will be considered as filed on time.

For records that are returned for correction, you will have until 3:00 a.m., Eastern Time, Thursday May 8, 2014 to correct and retransmit electronically. Records that are retransmitted and accepted on or before Thursday May 8, 2014, will be considered as filed on time.  

However, the deadline for self employed income stays the same:

Clients who have self-employment income, and their spouses or common-law partners, have until 3:00 a.m., Eastern Time, Tuesday June 17, 2014, to file their income tax returns electronically. If you receive a reject error clue that indicates that you should file a paper return, and you file the paper return after June 16, 2014, a late filing penalty may be assessed.
 

Anyone who has a balance owing for 2013 should remember that it must be paid on or before April 30^th, 2014.  Interest and penalties will be applied as of May 6^th, 2014.
 

If you have any questions, or require any assistance, let me know.  I would be happy to help.

Susan E.A. Jameson, BA, CPA, CMA
SEAJameson@gmail.com

519-872-6619

Tax Season is fast approaching

Who knew that another year could go by so fast... but here we are fast approaching February 28th.

Just a friendly reminder...

For those of you that are employed by a company and earning T4 income, remember that your tax returns are due on or before April 30th.

For all us self-employed individuals, while your return isn't due until June 15th, you still need to pay any balance of tax owing before the deadline of April 30th.  This means that you need to have an understanding of your tax liability before that date.

If you have any questions, feel free to drop me a line or give me a call.

I am here to help.

Susan E.A. Jameson, BA, CPA, CMA
SEAJameson@gmail.com
519-872-6619

Susan E.A. Jameson, BA, CPA, CMA

Yes you read the above correctly.  I now have the privilege to add CPA to my list of credentials. Very exciting indeed.

Susan E.A. Jameson, BA, CPA, CMA
SEAJameson@gmail.com

CMA's vote in support of unification

Here is one C.M.A. that is looking forward to the merger.  About time.

CMA Ontario members have voted in support of unification with the Institute of Chartered Accountants of Ontario (ICAO). 

This landmark announcement was made Wednesday, June 26, 2013 at a CMA Ontario General Meeting of Members in Toronto. In total, 32 per cent of Ontario members voted, with 94 per cent of voters supporting the unification proposal.

Read the vote results from the Institute of Chartered Accountants of Ontario here.

LOVING the new office!!

The joy of being self employed... you don't just say "wouldn't it be nice to move my office outside"... you just do it!