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Role of CFO in the Construction Industry
12 Jan, 2023Role of CFO in the Construction Industry
The construction industry is one of the most dynamic and fast-paced sectors in the world. With multiple large and small-scale businesses competing for limited resources entwined with a constantly changing work environment, construction companies often face numerous financial challenges. Some of these problems include misallocating costs, insufficient cash reserves, dealing with tax issues, and late payments. Therefore, to avoid such issues, land developers and contractors are now putting sophisticated financial management at the forefront of their business model. From ensuring quality materials and payment collection to verifying vendors, not to mention all the safety management and project planning that goes behind the scenes––running a construction business is a lot of work. Due to these multifaceted tasks, construction companies are left with no time to keep an eye on their finances. Therefore, they are always on the lookout for an experienced financial professional like a Chief Financial Officer (CFO) to manage and oversee all the financial aspects of their business. A CFO in the construction industry acts as a custodian of a company’s revenue and expenses and prepares financial projections in support of the organization’s overall business plan. Furthermore, they interpret complex financial statements and ensure compliance with all applicable laws and regulations. In this article, we have highlighted what a Chief Financial Officer does and why they should be involved with the day–to–day operations of a construction company. Risk Management Oftentimes, construction firms face a variety of risks, like safety, supplier performance issues, client default or bankruptcy, financiers, contract constraints, and interest rate volatility. However, a CFO establishes and maintains an adequate risk management process to identify, evaluate and manage these critical risks. Moreover, they assist in- Reducing the impact of risks that are inevitable and nontransferable
- Ensuring a complete execution of risk plans
- Keeping a rigorous check if the corrective actions are taken as per the requirement or not
- Identifying areas of improvement
- Verifying appropriate controls
- Setting up a system to find out exactly how much money has been spent on project construction, marketing, and design
- Ensuring that all accounts are accurate and up-to-date
- Overseeing all the financial matters including budgeting, taxation, and accounting
- Identifying any potential problems with the company's financial statements
- Income Statements
- Cash Flow Forecasts
- Balance Sheet
- All costs associated with the project, including labor, materials, equipment, and supplies.

Common Payroll Mistakes & How To Avoid Them
28 Dec, 2022 Common Payroll Mistakes & How To Avoid Them When you become an employer, you are bound to make mistakes along the way, some bigger than others. While business expansion and steering through the ever-changing business landscape would demand most of your focus, business finance, bookkeeping and accounting are the first and obvious to be oversighted. You may get an opportunity to resolve most of the finance and accounting mistakes as long as your employees are being paid accurately and on time. Payroll is a complex and time-consuming process which is subject to ever changing regulations. Correct and on-time pay is one of the most basic expectations an employee has from the employer. Payroll mistakes can cost employees and businesses alike. Correcting payroll errors takes time and can be incredibly unsettling for employees. Also, failure to comply with federal, state, or local rules can lead to fines & penalties while losing talent to other employers who are considered more accountable. This blog covers some of the most common payroll mistakes and tips to avoid them. Misclassification of Workers Misclassification of workers results in payroll errors and may lead to underpayment or overpayment. It happens when a company considers a person as an independent contractor but treats him more like a regular employee, or vice versa. Misclassification can lead to :
- Issues with right to Minimum wage, overtime pay
- Issues with taxes, insurance, retirement contributions and other benefits
- Lack of control over the work environment (e.g., no set hours, no guaranteed pay)
- Right to collective bargaining
- Protection from wage discrimination
- Consult Legal Experts
- Refer to government resources and self check services
- Review your contracts with the self employed contractors
- Train your Managers to identify any misclassification and to be conscious in assigning work and responsibilities to the workers
- Take corrective measures as soon as misclassification is identified. This could mean converting contractor to employee
- Manage employees and their pay periods, including deductions and withholdings
- Track time worked to calculate overtime payments
- Manage financial benefits such as RRSPs, pensions, and overtime payments
- Efficiently report income tax returns
- Save money by reducing manual errors and payroll processing fees
- Know employees' hourly rate, overtime rate and shift differential
- Calculate base salary and other compensation before calculating overtime and other allowances
- Ensure to pay employees on time and either use payroll software or partner with an experienced payroll service provider like CJCPA to provide accurate calculations avoiding error and mistrust
- Give each employee a copy of their pay stubs for them to check their individual hours worked daily, weekly or monthly
- Ensure employees are aware of their responsibilities regarding record keeping
- Ensure they are listed in the payroll system
- Keep a track of their hours worked and when they were paid
- Review your payroll records every month
- Keep track of sick days or vacation days earned

Tips for Managing Small Business Finance
21 Dec, 2022Tips for Managing Small Business Finance
As a small business owner, there is always something important that necessitates the utmost attention, time, and effort. Managing finances is one of them and perhaps the first one to be procrastinated for another day. Despite understanding the importance of maintaining accurate financial records, a small business owner may not have the time or knowledge to correctly track & handle company finances. This is where financial mismanagement begins and quickly becomes overwhelming. Study shows that most businesses fail in their initial stage due to a lack of structured financial management. From administering cash flow to planning funds, everything is crucial for a business to run smoothly. Whether you are in a starting phase or considering expansion, you need to manage your firm’s income and expense flow efficiently. Smart, small business accounting practices are essential for managing your daily operations and planning for long-term growth while avoiding costly errors that attract penalties. The following tips will help you to organize and manage your finances. Register your business The first step towards managing finances is to register a business. Start by choosing a suitable structure that determines ownership, business liability, and tax implications. These are the most common business structures in Canada -- Sole proprietorship
- Corporations
- LLC
- Chequing Account - It is a transactional account designed for daily transactions, paying bills, and making payments and purchases. With this account, a person can withdraw and deposit money anytime without paying any interest, as it is used to conduct daily transactions and is meant for pertinent use.
- Savings Account - This account is ideal for keeping funds for short and long-term business goals since the account earns interest. When required, transfer the funds to the chequing account for use as a direct withdrawal from the savings account attracts withdrawal charges.
- Personal Tax
- Corporate Tax
- GST/HST

Benefits Of Estate Planning
30 Nov, 2022
- Making a will and naming someone to be in charge of carrying out your wishes
- Determining who will care for your children (if they are minors)
- Arranging your assets so that you only pay minimum necessary taxes
- Putting insurance plans in place to pay bills, support your survivors, transfer assets, and more
- Prepare a will, it will let you decide to whom your asset will get passed on
- Consider trust as it avoids probate
- Make advanced health care directives
- Get an attorney who will look after your finances
- Assign a guardian to your minor children
- Choose and review your beneficiaries
- Keep your documents and files in order

Advantages of Hiring a CFO
06 Sep, 2022
- Better cash flow control
- Increased operational efficiency
- Sustainable business growth
- Cash Flow Management
- Prepare Budget & Financial Forecast
- Structure for Sustainable Growth
- Reduce Risks
- Boost Your Profit
- Expert Eye

Top Reasons For Outsourcing Your Payroll Services
30 Aug, 2022
- Compute payroll and tax obligations based on employee time sheets
- Provide management reports
- Employee self-service provider
- Tax Liability
- Labor Allocation
- Custom Payroll Management Services
- Accrual Balances
- W2 Forms and Tax Return Filing
- Job costings
- Pay Registers
- Reduce Regulatory and Compliance Risks
- Enhanced Security and Data Protection
- Maintain Accuracy and High-Quality Standards
- Saves You Money & Time
- Increases Flexibility
- Minimizes Stress
- The Expertise of Hiring The Professionals

5 Ways To Improve Cash Flow In Your Business
25 Aug, 2022
5 Ways To Improve Cash Flow In Your Business
Cash flow is one of the key measures to follow when forecasting your company's future growth; having a positive cash flow entails far more than just profitability. By maximizing your company's cash flow, you can help it receive profits faster, meet targets in less time, and reduce operating expenses. According to a US Bank study, poor cash management accounts for 82% of all business failures. This is due to the fact that most entrepreneurs lack the view to think outside the box and fail to incorporate business strategies to improve their cash flow. Positive cash flow, however, cannot be achieved through a simple 'producing and selling’ strategy. As a business owner, you must consider various methods for providing your company with consistent cash flow. Let’s look at the following five methods for improving cash flow in your business. 1. Create A Cash Flow Statement The Cash Flow Statement provides the precise figure of cash inflows and outflows from the business's various operations. It aids in determining future cash requirements by comparing past cash budgets with the present. It provides accurate information about the business's cash-based transactions. The cash flow statement is primarily used in gearing up the cash budget for future needs and in determining the business's periodic cash requirements. Also, it uncovers the key changes needed to improve the business's financial position and prioritize important management activities. 2. Establish a Business Budget According to research, businesses that establish and adhere to a budget are nearly two times more likely to grow revenue than businesses that do not have a budget. A solid budget allows you to set a course for your company and track and measure its progress and performance. Budgeting is the most efficient way to manage your cash flow, enabling you to invest in new possibilities at the right time. It's the single most effective way to keep your spending under control so you can hire, grow, and market your business without depleting your resources. 3. Reduce Operating Expenses Review your expenses on a regular basis and identify areas where you can save money.- Cut out unnecessary expenses: carefully consider your current expenses and eliminate any unnecessary expenses in order to effectively manage your cash flow and expenses.
- Streamline your business processes: Focus on reducing time and costs, as well as analyzing all of your current business processes to find ways to speed up the process.
- Replace old equipment with new ones: Investing in newer equipment and technology saves time, which reduces wage costs while increasing output or the ability to take on additional projects.
- Lease efficient equipment: If you don't have the cash to buy equipment outright or don't qualify for a working capital loan, consider leasing it and benefit from lower monthly payments to help keep your cash flow under control.
- Ask suppliers for wholesale rates: Some vendors provide discounts for purchasing inventory in bulk. So, ask your suppliers if they have any deals.

Accountants vs Bookkeepers: What’s The Difference?
25 Aug, 2022
Accountants vs Bookkeepers: What’s The Difference?
Keeping track of your finances is an essential part of running a successful small business. Your financial data must be current and accurate to help you make sound business decisions and apply correct cash flow strategies. Recording and tracking the finances on your own may be a viable option in the initial stages of the business, it will become difficult as your business expands. When the bookkeeping and accounting tasks for your business become too much for you to handle on your own, it's time to outsource them to a professional like CJCPA. But do you require the services of a bookkeeper or an accountant? Even though these terms are used interchangeably due to a few overlapping responsibilities, there are some distinct differences as well. Let us assist you in deciding who to hire for your specific requirements. Difference Between a Bookkeeper & an AccountantBookkeeper | Accountant |
Record business financial transactions - receipts, payments & expenses | Review financial statements |
Conduct monthly bank reconciliation | Prepare adjusting entries |
Send out and record invoices and invoice payments | Review and analyze financial statements |
Process payroll | Analyze the cost of the operations |
Process bill payments | Assess financial health and make financial forecasts |
Provide the year-end financials and tax documents to the accountant | Conduct Internal Audits |
File Tax returns, conduct tax planning, and provide tax advisory |
- Recording and Organizational services: The bookkeeper assists in tracking and organizing financial documents and reports, which helps analyze the financial health of the business.
- Direct Assessment: While accountants provide detailed analysis, a bookkeeper can provide you with a simple overview of your company's financial situation.
- Expertise: A skilled bookkeeper can provide you with peace of mind and assurance that your finances are in good hands.
- Less Expensive: Bookkeepers typically charge less than accountants for their services. The exact amount depends on the amount of filing and documentation required.
- Legal Assistance: Due to their qualification and expertise, accountants can compile financial documents & data to assist your business in dealing with any legal issues. Accountants' experience with corporate taxes can also assist businesses in avoiding CRA legal issues.
- Professional Analysis: An accountant reviews & analyzes a company's financial statements and advises business owners during financial decision-making.
- Business Finances Management: A trained accountant can keep track of your finances all year, ensuring that your reporting and statements are correct and that your accounts are properly balanced.
- Expertise: Accountants bring much more valuable expertise and advice in regards to tax returns, tax planning, and advisory.
- The company's line of business
- The inventory size of the company
- The number of employees at the company
- The range of services provided by the company
- Whether or not the company requires financial assistance

7 Advantages Of Hiring A Virtual Bookkeeper
23 Aug, 2022
- Making informed, data-driven decisions
- Understand profitability
- Demonstrating accountability and transparency to stakeholders
- Effective planning for medium and long-term business goals
- Setup and process books of accounts
- Ledger Maintenance
- Accounts receivable and payable
- Accounts reconciliation
- Cash flow management
- Budgeting
- Payroll processing
- Financial Reporting
- Reconciling bank and credit cards statements
- Remitting sales tax returns
- Year-end accounting
- Maintaining Financial Records
- Proficient Payroll Management
- Handling Legal & Regulatory Concerns
- Monitoring Your KPIs
- Preparing Taxes
- Unbiased Perspective
- More Time To Grow Your Business

Top 5 Reasons to Keep Your Business & Personal Bank Accounts Separate
05 Aug, 2022
- Track your business cashflow with ease
- Make your accounting more efficient
- Strong Business Credit Score
- Protect your assets from legal liability
- Establish a business image and credibility