FREQUENTLY ASKED QUESTIONS

4-A conducts regular presentations on these topics. Please contact us if you’re interested.

When Should I Incorporate My Business?


Incorporating a business should be considered when you need a tax plan (when you are not using all the cash) and to limit your exposure to risk and liabilities.




What Are the Costs Related to Incorporation?


Legal Fees

  • One-time setup costs
  • Annual filing fees
Accounting Fees
  • Annual Corporate Tax Return and Financials (not just a personal tax return)




Why Is It Important for my Business to be a Separate Entity?


  • Having your business separate from your personal financial situation is important for tax, income and liability purposes.
  • Incorporating means your business will have a separate bank account, credit cards and set of records.




What are the Benefits of Incorporation?


Incorporation of your business allows you to:

  • Properly plan to maximize profits and reduce risks
  • Tax savings
  • Possible elimination of CPP contribution
  • Income splitting (dividends versus salary for tax savings)





INCORPORATION

When Should I Incorporate My Business?


Incorporating a business should be considered when you need a tax plan (when you are not using all the cash) and to limit your exposure to risk and liabilities.




What Are the Costs Related to Incorporation?


Legal Fees

  • One-time setup costs
  • Annual filing fees
Accounting Fees
  • Annual Corporate Tax Return and Financials (not just a personal tax return)




Why Is It Important for my Business to be a Separate Entity?


  • Having your business separate from your personal financial situation is important for tax, income and liability purposes.
  • Incorporating means your business will have a separate bank account, credit cards and set of records.




What are the Benefits of Incorporation?


Incorporation of your business allows you to:

  • Properly plan to maximize profits and reduce risks
  • Tax savings
  • Possible elimination of CPP contribution
  • Income splitting (dividends versus salary for tax savings)





FINANCIAL GROWTH

Why do I need Corporate Bookkeeping?


As a separate entity your Corporation will need the following:

  • Monthly bank account reconciliations
  • Monthly credit card account reconciliations
  • A record of Personal expenses vs. Corporate expenses




How do I keep Track of my Books?


As a business owner you have a variety of ways to track your books. You can choose to do it yourself or hire a professional Bookkeeper. This depends on your time and your budget. It is highly recommended that you enlist the services of a professional bookkeeper however if you choose to do it on your own we recommend using recognized software programs to help you such as:

  • Simply Accounting
  • Quickbooks
  • Excel Spreadsheet Synoptic




What Items Need to be Recorded or Monitored?


  • Accounts Receivables (remember to Invoice regularly)
  • Record Expenses
  • Accounts Payable (Note: Capital Assets are not a direct expense when purchased)
  • Monitor cash flow and profitability monthly and by project
  • Always be ready to make the hard decisions on customers/product lines.




What do I need for Year-end Preparation?


  • Provide what the accountant needs to reduce time and billing
  • Demonstration of year-end binder





CORPORATE BOOKKEEPING

Why do I need Corporate Bookkeeping?


As a separate entity your Corporation will need the following:

  • Monthly bank account reconciliations
  • Monthly credit card account reconciliations
  • A record of Personal expenses vs. Corporate expenses




How do I keep Track of my Books?


As a business owner you have a variety of ways to track your books. You can choose to do it yourself or hire a professional Bookkeeper. This depends on your time and your budget. It is highly recommended that you enlist the services of a professional bookkeeper however if you choose to do it on your own we recommend using recognized software programs to help you such as:

  • Simply Accounting
  • Quickbooks
  • Excel Spreadsheet Synoptic




What Items Need to be Recorded or Monitored?


  • Accounts Receivables (remember to Invoice regularly)
  • Record Expenses
  • Accounts Payable (Note: Capital Assets are not a direct expense when purchased)
  • Monitor cash flow and profitability monthly and by project
  • Always be ready to make the hard decisions on customers/product lines.




What do I need for Year-end Preparation?


  • Provide what the accountant needs to reduce time and billing
  • Demonstration of year-end binder





TAX PLANNING & SUCCESSION PLANNING

Why is Financial Reporting Important?


  • Analyzing on a monthly or quarterly basis (NOT ANNUALLY)
  • Understanding the current financial position not just historically
  • Collection of accounts receivable and Cash flow
  • Knowing your margins and clients
  • Banking covenants and reporting requirements
  • BUDGETING and PROFITABILTY





FINANCIAL MONITORING & REPORTING

What Information do I need to provide 4-A for my Personal Taxes?


Click here for a handy checklist to help you assemble your financial information for preparation of your income tax return. Keep this checklist handy. The checklist should be completed and returned to 4-A together with the financial information assembled.

Handy Checklist for Personal Taxes





PERSONAL TAXES