Blog

Lorem ipsum dolor sit amet, consecte adipisicing elit sed do Lorem ipsum dolor sit amet, consecte adipisicing elit sed do

Advantages of Hiring a CFO
06 Sep, 2022
As a business owner, you are faced with many choices. If you’re in start-up mode, you are managing just about everything in your business - from bookkeeping to sales, from marketing to employee management, and more. With such a vast set of activities, the financial health of the business is often overlooked.  Your financial data must be current and accurate so you have the tools you need to make sound business decisions and implement healthy cash flow strategies. And as your business grows to include more customers, vendors, and employees, keeping track of your finances on your own becomes more challenging. Pretty much every business needs some form of a finance lead or a bookkeeper to maintain the financial records. While this could suffice in the early stages of business, you would need an experienced financial professional to review the numbers and map them with your strategic business goals and the company’s intended outcomes, from the financial point of view. CFO brings financial visibility into your business so you can make smarter business decisions and leverage opportunities as they come. Financial visibility means having accurate, timely, relevant, and insightful information which in turn helps in:
  • Better cash flow control
  • Increased operational efficiency
  • Sustainable business growth
While all of the above are crucial for the long-term success of any business, small or mid-sized businesses may not have the financial resources or the business need to hire a CFO on their payroll. Hiring a fractional or virtual CFO can prove beneficial here.  Hiring a CFO has a lot of advantages. Let’s discuss them one by one.
  • Cash Flow Management 
Cash is the lifeblood of every business, especially small businesses, and early-stage startups. Cash flow must be monitored proactively and planned thoroughly to avoid a cash crunch scenario. An experienced fractional CFO can help with an accurate cash flow forecast for working capital - both in the short and long term. A virtual CFO offers cash flow management advisory services and helps limit expenditure ensuring that the business maintains its financial health.
  • Prepare Budget & Financial Forecast
The majority of business owners are busy running their day-to-day operations which may shift the focus away from the financial health of the organization. This in turn impacts the business readiness for long-term objectives and strategies.  The experienced CFO will examine your company's financials in detail while you focus on running your core business operations, identifying pain points, and undertaking course corrections as required.  At CJCPA, we offer business consulting and valuation services and develop data-driven plans that can help your business gain a competitive advantage. 
  • Structure for Sustainable Growth 
For early-stage start-ups agility through ad hoc communication and shared responsibilities seem like the most effective way of work. While this close collaboration between core members would work in the immediate term, it will become counterproductive when the business operations and the team starts to expand. At this point, you will need a better structure to streamline both accountability and responsibilities for smooth business operations.  A CFO can help you understand the pros and cons of different organizational structures for better staff supervision and direction while being cost conscious. CFO services can help build a strong foundation to adapt to business conditions.
  • Reduce Risks
All firms are susceptible to risks like bankruptcy, market downturns, lower profitability, and unpredictability, regardless of their industry and size. Each of these elements has a significant impact on the financial stability of your business. Your CFO will assist in developing plans to manage your business risks comprehensively and proactively. You need to safeguard your firm from the unexpected - ranging from insurance to business succession planning.
  • Boost Your Profit
A professional CFO, such as CJCPA, assists you in setting financial and profit benchmarks using industry norms and averages. CFO can help bring efficiency to business operations by reducing avoidable expenses thereby improving profitability and ensuring sustainable business growth.
  • Expert Eye
It could be difficult for you to take a step back and consider everything objectively at times when you are mired in the day-to-day operations of your business. CFOs serve as a sounding board for financially viable business choices that may have an influence on long-term business growth. A competent CFO has knowledge of and insight into the opportunities and problems faced by diverse industries. They can therefore offer a different perspective and expertise to optimize a business’s operational expenses. Partner With CJCPA  Searching for a CFO that fits your culture and has experience in the relevant industries? Look no further.  At CJCPA, our business plan experts provide assistance to grow your business tracking and managing industry-specific challenges. For more information, schedule a 30 min free consultation call with our professionals. Drop us a line at jas@cjcpa.ca  
Top Reasons For Outsourcing Your Payroll Services
30 Aug, 2022
  Whether you are a small-sized business or an established enterprise, one of your biggest worries is to ensure enough working capital on hand to run the business on a day-to-day basis. Payroll may be a non-core recurring activity but it is a time-intensive process and demands accuracy - making sure all tax and legal obligations are met.  As an owner and manager of a growing business, it is worth the effort to find the right service provider and outsource your payroll system. An experienced service provider can perform the following tasks:
  • 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
Here are the top reasons you should choose for outsourcing your payroll services:
  • Reduce Regulatory and Compliance Risks
Fast-paced regulatory developments that have an impact on payroll can make maintaining compliance a difficult and time-consuming procedure. To guarantee that these changes are correctly reflected in the payroll system, it is crucial to keep up with legal changes. When revising payroll calculations, errors are common, especially when IF, AND, OR logical operations are used. Payroll calculations made using an erroneous formula may result in issues like under or overpaying taxes and salaries. And you may not even recognize a mistake until you've been issued a costly non-compliance fine. You can reduce your exposure to these compliance and regulatory issues by outsourcing your payroll to a specialized service provider, like CJCPA. 
  • Enhanced Security and Data Protection
Payroll processing involves extremely sensitive information, so data security is essential. Adequate security measures must be implemented to reduce the possibility of Funds Abstraction or corporate data tampering, both of which can result in significant losses. These safeguards must be in place for payroll service providers. Employers can protect their private information by outsourcing payroll to a reliable company that invests in cutting-edge technology, has a redundant backup, and has various server locations.
  • Maintain Accuracy and High-Quality Standards
Payroll processing service providers offer solutions that are highly accurate and error-free. Error reduction has long been a top priority in the processing of payroll. In addition to reducing labor costs, it also resolves complaints. Due to its direct connection to worker satisfaction, it is a crucial component of any organization.  Outsourcing has the important benefit of reducing the possibility of fraudulent activity. Since there are many factors at stake, advanced technology is available and affordable, outsourcing financial services can lead to more meticulous task execution. Due to their primary focus on building trust and obtaining revenue, there are very few chances that outsourced organizations will engage in fraudulent operations.
  • Saves You Money & Time 
Instead of devoting hours to payroll processing, which is a time-consuming administrative task, you can focus on achieving strategic goals. Consider hiring a professional to handle payroll accounting, relieving the payroll department and increasing the company's competitive advantage.
  • Increases Flexibility 
Payroll outsourcing also allows you to maintain flexibility in quickly evolving business environments. Instead of having to hire, onboard, train, and retain additional internal personnel, outsourcing enables you to swiftly increase your payroll service requirements as needed.
  • Minimizes Stress
When it comes to payroll, there is no room for error; timely and precise payment of your employees is essential to the success of your business. However, when internal teams are juggling the demands of an expanding staff with the requirement to maintain local regulatory compliance, managing payroll effectively can be difficult. Your payroll is in the finest hands with CJCPA since our team of payroll specialists will handle payroll management for you, making sure that pay runs are effective, accurate, and compliant.
  • The Expertise of Hiring The Professionals 
Outsourcing to a competent payroll service provider gives your company access to a pool of payroll knowledge experts without incurring the cost of hiring them internally.  Our team of skilled payroll professionals assists with payroll management for businesses of all sizes, types, and industries. Leverage our extensive experience and skills to construct your business effectively so that you can focus on achieving greater heights. Partner With Professionals Your Payroll Processing project needs a team of knowledgeable, experienced, and skilled professionals to be successful. Consider partnering with us.  At CJCPA, we reduce your overhead, freeing up your key personnel to focus on expanding your company. Contact us today for a comprehensive evaluation of your requirements.
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.
4. Incentives For Early Payments & Penalties For Late Payments Invoicing is a time-consuming and labor-intensive process for many businesses. If you find it difficult to hold your clients accountable and abhor having to follow up on late payments, consider implementing an incentive and penalty program. For instance, discounts could be practiced to any account that is paid on time or early, and interest could be added to any invoice that has been ignored for an extended period of time. These actions will incentivize your customers to pay you early, instantly improving your cash flow. The benefits? Not only will more of your customers pay on time or early, but you'll also save time and resources by not having to constantly confirm that payments have been received. 5. Improve Marketing  Marketing is the most important factor in increasing your company's cash flow. The reason for this is that better marketing lowers your cost-per-lead while increasing the lifetime value of your customers and expanding your market reach. Struggling to build trust and credibility with your customers? It’s time to launch a digital marketing initiative that educates your leads, increases conversions, and improves your company's image, particularly online. Conduct customer interviews and thorough competitor research to gain insight into your customers' demands and offer accordingly. Final Words Implement these strategies to gain control of your company's finances and increase its cash flow. Still feel that you cannot implement all these strategies without help?  Consider partnering with a top business planner like CJCPA. At CJCPA, we have a team of accounting and financial professionals, including accountants, financial analysts, business plan experts, and CFO service experts, all committed to providing top-notch services to help you identify expenses and opportunities to improve your cash flow. Contact us today for cash flow management advisory services
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 Accountant
Bookkeeper  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
  Basically, the bookkeeper’s role is to record transactions and keep the business financially organized, whereas accountants are in charge of categorizing, evaluating, interpreting, reporting, and summarizing this financial data.  Accounting begins where bookkeeping ends A bookkeeper is responsible for the initial categorization and recording of a company's transactions such as bills paid, daily sales, payroll, and other expenditures. As part of the accounting process, the bookkeeper must correlate and insure the books or records and present them to the accountant. An accountant, on the other hand, examines the bookkeeper's financial records and statements to aid in analytical interpretation. The professional accountant analyzes and interprets bookkeeping data to assess financial health and make financial forecasts.  Advantages of Hiring a bookkeeper
  • 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.
Advantages of Hiring an Accountant
  • 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.
A Bookkeeper or An Accountant: Whom To Hire? Hiring online bookkeeper and accountant services is essential for every business. However, the need for one or the other may vary for each business. Understanding when the professional expertise of a bookkeeper or accountant is required, either separately or jointly, will be determined by factors such as:
  • 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
Outsource Your Company’s Financial Services to Professional Bookkeepers and Accountants: The business world is constantly changing, and regulations that keep businesses afloat, such as licensing and taxation, necessitate exceptional financial accounting services. Most transactions involving partners or financial institutions require transparent and trustworthy financial statements. The best business manager is the one who understands the company's accounting needs and knows when to hire a bookkeeper versus an accountant. Consider partnering with CJCPA, we provide bookkeeping, accounting, and business advisory services that are customized to your specific business requirements. Book a free consultation today or drop us an email at jas@cjcpa.ca
7 Advantages Of Hiring A Virtual Bookkeeper
23 Aug, 2022
7 Advantages Of Hiring A Virtual Bookkeeper There’s no getting around the fact that to run a successful business, owners need to keep their books up to date. Recording, analyzing, and interpreting financial transactions is a large portion of the accounting process for any business. Bookkeeping provides businesses with accurate information regarding their financial activities and progress at any point in time.  Accurate financials and well-organized books are essential for:
  • Making informed, data-driven decisions
  • Understand profitability
  • Demonstrating accountability and transparency to stakeholders
  • Effective planning for medium and long-term business goals
Hiring the services of a seasoned bookkeeper is the most effective way to keep your financial records in order. However, this does not imply that small businesses must devote resources to filling this critical role internally. In fact, hiring an outsourced, virtual bookkeeping service provider is often the most cost-effective solution to gain financial control. Virtual bookkeeping allows professional bookkeepers to provide regular accounting services remotely. Online bookkeeping not only provides flexibility in terms of location and hours but also allows for easy, shared access to your accounting and financial documentation. Functions of An Online Bookkeeper  A virtual bookkeeper is responsible for the same functions as an in-house accountant or a bookkeeper. The tasks of a virtual bookkeeper range from:
  • 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
Let's look at the most significant advantages of virtual bookkeeping:
  • Maintaining Financial Records 
A virtual bookkeeper handles all financial aspects of your company, such as payroll, sales invoices, bank feeds, purchase invoices, and accurate reporting. They ensure that you have an effective system in place that keeps records of business financial transitions for better decision-making. 
  • Proficient Payroll Management 
When you have a virtual bookkeeper to send you regular reports and walk you through the payment process, payroll management is a breeze. At #CJCPA, our top-notch bookkeeping and payroll services for small businesses provide the much-needed backend support to your business so you can focus on core business activities.
  • Handling Legal & Regulatory Concerns
Reading the fine print can be difficult at times. The main cause is a lack of time. A trained bookkeeping virtual assistant can assist you in keeping up with changing tax laws, rules, and regulations. Hire a competent bookkeeper, such as CJCPA, who keeps up with new standards and adopts them to provide accurate reports to clients.
  • Monitoring Your KPIs
A virtual bookkeeper keeps you informed of your company's financial situation. With a well-crafted cash flow statement, income statement, and financial report, you can easily keep track of all financial aspects of your business.
  • Preparing Taxes
A virtual bookkeeper prepares your taxes, maintains tax filings and taxable accounts, and ensures tax filing as per CRA deadlines. 
  • Unbiased Perspective 
Having someone from outside your company handle your finances ensures that there is no personal bias or connection to the business's internal affairs. At #CJCPA, we provide an unbiased perspective on your business’s financial scenario and recommendations to improve it.
  • More Time To Grow Your Business
Online bookkeeping and accounting services are a much more convenient and cost-effective alternative to hiring an in-house employee. This will give you more time to work on more pressing issues that are critical to your business. Your virtual bookkeeping assistant will handle all financial matters for you, so you won't have to. Final Note A Bookkeeper can bring your past books up-to-date and take everyday bookkeeping tasks off your plate with guaranteed accuracy. Organized financial records and properly balanced finances produced by the bookkeeper contribute directly to the long-term success of every business. Therefore, hiring the services of a bookkeeper should be seen as a real investment in your business, as it brings you more in revenue and savings that you end up paying. Hire A Professional Virtual Bookkeeper Today At CJCPA, we understand business and provide customized solutions and advice to help you focus on the parts of the business you really love. We are here to take the guesswork out of running your business. Get in touch with us. We are excited to be a part of your financial journey!
Top 5 Reasons to Keep Your Business & Personal Bank Accounts Separate
05 Aug, 2022
Maintaining accurate financial records is crucial when running a business. One of the simplest yet easily missed things is setting up your accounts correctly from the start.  Depending on the structure of your business, you may be required to keep business funds in a separate account. If you are a sole proprietor, you may not be required to keep a separate account at some point; however, if your business is organized as a partnership or corporation, you must. Continue reading to discover the most compelling reasons to open a business account. Also Read: Top 10 Bookkeeping Tips For Small Businesses
  1. Track your business cashflow with ease
Keeping your business and personal finances separate enables you to manage and respond to your cash flow situation efficiently. With a separate business account, tracking & management of funds becomes efficient as it assists you to better understand business performance and forecast cash flow for the coming months/quarters. Plus, the more organized your financial records are, the easier it will be to access funding from a lender or credit provider.
  1. Make your accounting more efficient
When tax season arrives, you would want to ensure that you did not miss any legitimate business deductions. If your business and personal expense accounts are the same, reviewing every transaction on your bank statements can be stressful and time-consuming, increasing the likelihood of omissions. Keeping your personal and business expenses separate not only simplifies the process but also helps avoid claiming a personal expense as a business expense. It also makes record-keeping easier and aids in the identification of taxable benefits and deductions.
  1. Strong Business Credit Score 
Although clubbing personal and business finances may seem easier to maintain at first, it will lead to complications eventually. Keeping a separate business account aids in the development of your company's credit rating. Your business credit score, like your personal credit score, reflects the creditworthiness of your company. A good credit score helps you get better terms on business loans and lowers the cost of business insurance.
  1. Protect your assets from legal liability
Separating your business assets from your personal finances can help protect your assets in the event of legal action. If you fail to keep your business and personal affairs distinct, courts may decide to "pierce the corporate veil," which provides limited liability. When deciding on the type of business entity to establish, keep in mind that some offer more protection than others. Therefore, it is advisable to consult an experienced CPA while incorporating your business. Furthermore, please ensure that any business operating agreements such as lease agreements and supplier contracts have your business name and account information mentioned on them. 
  1. Establish a business image and credibility
Opening a business account is a critical first step if you want your organization to be taken seriously. Making and accepting payments into a business account contributes to a more proficient and trustworthy image. When you have a second account for business funds, your business name will appear on invoices and payment paperwork rather than your personal name. This will aid both suppliers and customers become more familiar with your company's name. Final Words  Even if your business is new and not yet profitable, it is critical to get off to a good start by keeping personal and business finances separate. At CJCPA, we advise all business owners to do the same, while we keep your records ready for tax season or audits. Our experts streamline your books and provide accurate financial statements, allowing you to focus on business growth. Connect with us TODAY and explore our best-in-class services to address your financial needs.
The Importance Of Outsourcing Accounting In The Real Estate Industry
28 Jul, 2022

Having a strong accounting foundation is important whether you sell small properties as a hobby or facilitate property management services, generating millions of dollars. Though the scale of operations could differ, the underlying tasks are similar. Real estate professionals have a lot to manage since they have to keep up with clients, listings, finances, building business networks, and more. While connections and closing sales are drivers for success, complying with real estate accounting principles and business regulations guarantees success.

Real estate accounting requires strong acumen to record, track and process the daily transactions as revenue recognition is more complex when compared to any other business. A real estate accountant is responsible for a wide set of tasks ranging from general ledger accounting, payroll, bank reconciliations, monthly book closing, and reporting; to keeping track of changes in real estate valuations and identifying ways to improve asset management. This requires a duly qualified and experienced real estate accountant - to record, analyze and report transactions.

Significance Of Outsourcing Accounting In The Real Estate Industry

  • Increases Revenue While Decreasing Expenses

Keeping an eye on expenses is one way to boost your company's revenue. Due to the high volume of daily transactions involving employees, vendors, contractors, and agencies, acts of omission or commission cannot be ruled out. Being aware of these transactions requires knowledge, experience, and time. Despite best efforts, it is easy to get caught up in complexities. And before you know it, you will be tempted to make excuses and defer or avoid these tedious tasks.

This clearly highlights the need for an expert to critically review the books to avoid and identify mistakes before it impacts business performance.

  • Helps Determine Property Rates

Evaluating a property's current market value may not be as simple as it looks. The frequency of property transactions is generally low and property may remain with the same person for an extended period of time. Hence, calculating the current value of the property becomes difficult and complicated.

Again, an experienced accountant can find an adaptable solution that accommodates industry practices while ensuring adherence to business regulations and legal requirements.

  • Assist In Debt Reduction

Business debt can get out of control unless kept in check. An experienced professional accountant will save you fortunes by painstakingly evaluating interest rates on credit cards and mortgages, consequently preventing potential loss. They also assist in transferring your high-interest rate accounts and balances to zero interest rates..

  • Aids In Developing New Strategies

To streamline your business, you must develop a strategic plan that will influence the growth of your company. Real estate accounting aids in the development, implementation, and planning of new business strategies. It also compares growth year over year and identifies underperforming properties, enabling you to plan and act appropriately.

  • Keeps You Informed

Staying current on property tax rates helps avoid legal consequences and losses. Accounting keeps track of taxes enabling you to manage overall tax returns effectively. A professional approach and thorough research are the best bet for making informed decisions.

Final Words

Considering the high volume and complex nature of financial transactions involved in the real estate industry highlights the need for an expert who can critically review the books and ensure the financial stability of the business.

Maintaining an in-house team of accountants may not be financially viable for many businesses, so partnering with an experienced team of accountants seems logical. Furthermore, a professional independent third-party review would help identify in-efficiencies in cash flow.

If you're looking for an experienced accounting team for your real estate business, reach out to the CJCPA team. Our experienced professionals analyze your business's financial and accounting requirements, create customized strategies and implement actions that have a positive impact on your bottom line. Partner with us today and watch your company succeed.

Top 5 Common Real Estate Accounting Mistake
15 Jul, 2022
 

Property ownership requires extensive accounting work and includes both tangible and intangible assets. Real estate is a vastly complicated jumble of structures and procedures. With so much to maintain, mistakes are unavoidable; however, they could be minimized. Real Estate accounting includes maintaining information and data on buying and selling assets. It helps the owner’s in keeping track of assets owned and sold, safeguarding their financial health, up-to-date tax liabilities, compliance, etc. But any errors in accounting may result in significant losses that no business owner should ever experience. Your team may be working around the clock to keep the books in order but an honest mistake or an oversight could waste the entire year’s effort. Our team can help you to avoid those mistakes and grow your business. The Top 5 Common Real Estate Accounting Mistakes Are:
  1. Failure to separate business and personal accounts
Keeping your personal and business accounts separate from the start is the best and most practical option. We may not see it coming, but one impulsive act is all it takes. Keeping organizational and individual finances in one account can and will lead to extensive exercise to clean books which proves costly and may still lead to regulatory non-compliance or tax notices.
  1. Failure to follow the tax filing procedure
Tax filing is an essential part of real estate accounting, and incorrect tax filing can jeopardize your organization's future. Your accounting data should be able to provide you with accurate tax obligations and errors in accounting data may result in making wrong tax filing choices. Make a thorough plan and discuss with your accountant if you have any confusion, to avoid mistakes.
  1. Failure to backing data daily
Backing up accounting data is very crucial for all businesses. If data is lost due to any reason, it can be a huge setback and costly. It is a best practice to keep a regular backup of your data, ensure that all information is stored, and have a backup process in place. It is best to invest in data backup software, which would save you from a lot of trouble in the future. Off-site backup, especially cloud backup is a very common practice.
  1. Having inexperienced personnel to check your books
Real estate accounting is very complex due to the complexity of the transactions. Having inexperienced personnel or staff with basic accounting education could be fatal for your business. Professionals like the CJCPA team would have comprehensive knowledge and experience to deal with complex real estate transactions and help your business to take to a new height year after year.
  1. Lack of cash flow management
The first few years of any business are tough due to growth and poor cash flow management. The real estate business is no different than the rest of the businesses and requires strong cash due to higher volume and higher dollar value. It is acceptable to send the funds a few hours or a day even before the transaction, but this practice should be avoided or used minimum as you will be wasting resources and time on a daily basis to keep it going. Without strong cash flow management, you would be unable to forecast the expenses and plan future investments. Our professional team can help and guide your team to develop cash flow management to run your business smoothly. Final Words Real Estate accounting is certainly difficult, and without an in-depth understanding of its complexities, there is always the risk of making mistakes such as those discussed earlier in this blog. It is best to seek the advice of professionals when managing your real estate accounting. Professionals like the CJCPA team bring industry expertise to help you to better understand the real estate process and develop the best strategy for your success. Feel free to contact us and discuss your needs at 604-560-8020 or jas@cjcpa.ca
Top 10 Bookkeeping Tips For Small Businesses
20 Jun, 2022

Keeping up with accounting tasks can be difficult for any company or organization, but it is especially difficult when you run a small business and do your bookkeeping! To avoid chaos, implement a foolproof system that is appropriate for your company's size, revenue, and industry, while also embracing your heavy workload. You need to use a simple, impactful procedure that enables you to monitor and record all financial aspects of your business swiftly and easily. This way, when tax season arrives, all your expenditures, invoices, deposits, and other financial data will be tidily saved and accounted for. In this article, we'll go over ten great bookkeeping tips to help you get started on the road to bookkeeping bliss for your small business. Also Read: Advantages Of Incorporation For Business
  1. Keep Your Personal and Business Finances Separate
It is critical to keep your finances separate from those of your company. Amalgamating accounts and expenses makes it more difficult for you or your accountant to organize and can raise red flags to auditors. Combining business and personal finances also makes it incredibly difficult to analyze the financial performance of your company because cash flow is obstructed by non-business expenses. Separating personal and business finances is more than just a bookkeeping tip; it is essentially a rule for small businesses to thrive.
  1. Leverage The Potential of Cloud-Based Accounting Software
Utilizing cloud-based accounting software not only provides offsite data storage but also allows users to access your bookkeeping data from any device connected to the internet at any time, from any location. Accounting apps automate financial management, organization, and reporting, saving you time and money. Instead of carrying that receipt around until the ink fades, take a photo with your device and update it to the app.
  1. Prepare For Data Recovery
This advice should be implemented in all your company's data. Plan to keep it safe if you can't afford to lose it! Data is the most valuable asset for all businesses. Making sure your financial records are backed up is critical to keeping your business running smoothly in the event of a natural disaster or cyberattack. If you lose your documents, you may be unable to claim certain important tax deductions.
  1. Go Paperless
Advanced accounting software has transformed small business bookkeeping. Most platforms include everything that you need to maintain your company's accounting, including digitally organizing bookkeeping documents. These platforms include templates that enable you to easily enter data and track basic items like invoices, deposits, and check printing. By keeping your files digital, you not only save the environment but also minimize the chances of physical copies being destroyed.
  1. Go Cashless
Accounting software can track many things for you automatically, but not cash. If you want to deduct large expenses during tax season, cash makes it even more difficult because there is often little to no record of these purchases. However, by using various digital payment methods, you can keep track of how much you spend, as well as when, where, and why. Electronic payment systems help to create an audit trail that you can refer to if you ever need to prove any tax write-offs.
  1. Keep Employee Classifications Up to Date
If you have both employees and contractors on your payroll, you must ensure that they are correctly classified. The CRA enforces severe penalties for misclassification, even if done by mistake. Remember, it's much easier to get it right in the first place than it is to try and correct it later.
  1. Strategize For Major Expenditures
If you fail to manage major expenses, you will certainly end up regretting it at some point. This is particularly the case if you work in a competitive industry and are unable to capitalize on a golden opportunity due to a lack of capital. However, saving necessitates a conservative approach to managing your day-to-day business requirements. Maintain a healthy rainy-day fund for future expenses such as updated machines and equipment or an upgrade to your company's computer networks by saving in tiny increments over a set period.
  1. Put Aside an Adequate Amount for Your Year-End Taxes
The CRA is also interested in ensuring that you are complying with your tax obligations. If you don't save for taxes, you might have a nightmare come tax season. Assessing your tax returns from the preceding three to five years could provide at least a benchmark as to how much you should really be saving each month. If you don't have a lot of business experience to draw from, it's better to over-save than risk a tax penalty.
  1. Examine Your Finances Frequently
This is one of the most important bookkeeping tips for a small business. Maintaining a consistent planner for reviewing your company's financials is the finest way to stay on top of your bookkeeping. Schedule one to two hours twice a month to go over your company's withdrawals, deposits, transactions, purchases, and other important items. Taking the time to review also allows you to check your accounts receivable to make sure your clients are paying their bills on time. If you notice any disparities or failures to pay, you can apply gentle pressure to bring your books up to date before tax season. Of course, as a business owner, you wear many hats and may not have time to dive deeply into your bookkeeping on a routine basis. If this is the case, it may be prudent to delegate this critical task to an expert.
  1. Hire A Bookkeeping Professional
If you're having trouble keeping up with your accounting, or if you're not catching minor mistakes before they become major issues, it's time to contemplate hiring a professional. When using this strategy, make sure to use your bookkeeping service monthly rather than waiting until the close of the financial year. This way, you can make corrections before they cost you a lot of money. Also Read: Difference Between Sole Proprietorship and Corporation  Reach Out to CJ Chartered Professional Accountants For All Your Business Financial Requirements If you've already tried all these small business bookkeeping tips and still feel like you're in over your head with your company's finances, then you can always contact us. We can assist you by analyzing your current accounting processes, evaluating your main problems, and then planning and implementing a plan of action to optimize your bookkeeping strategies and produce transformative results. Our bookkeeping services can be as exhaustive or as modest as you require, and our experience with tax law goes a very long way toward making sure your finances are in adherence with the most recent CRA rules and regulations. Ready to book a free consultation to discuss your small business’s tax and accounting needs? Feel free to contact us by filling out the form or you can directly call us at +604-560-8020. You can also drop us a mail at reception@cjcpa.ca .
Sole Proprietorship vs Corporation
13 Dec, 2021
There seems to be several factors to consider when starting a small business, whether you are looking to earn extra income or want to become your own boss. You could either start your business as a sole proprietorship or can incorporate a company. Each option has its own advantages and disadvantages.

Starting a sole proprietorship is simple and straight forward with minimum starting cost. On the other hand, incorporating a company has initial accounting and legal cost and would need to complete some paperwork before you start doing business.

Advantages of sole proprietorship: The real advantage of starting a business as sole proprietorship is low cost and no wait time. You can start and stop business any time you like. You will be the boss and responsible for everything.

Disadvantages of sole proprietorship: The main disadvantages are personal liabilities for business work and limited growth opportunities. Also, the net profit will be taxed at gradual personal tax rate which could be very expensive. .

Advantages of a corporate: The main advantage of a corporation is lower tax rate and limited liabilities. A corporation can continue to operate ff stockholders or shareholders leave the company by estate planning. Unlike sole proprietorship, incorporated companies can expand their business easily.

Disadvantages of a corporation: Formalities are much more compared to sole proprietorship. Companies must hold director and shareholders meetings and higher professional cost than sole proprietorship business.

Should you incorporate a company? There are various variables which could influence your decision. We are here to assist. If you have any questions, about starting business as a sole proprietorship or as a corporation, please feel free to contact us.v
Get In Touch

Don't Hesitate To Send Your Message To Us