The April 2021 Canadian Federal Budget announced something called “immediate expensing” for most assets purchased after the budget date of April 18. This applies to Canadian controlled private corporations which we call CCPC’s. The additional deduction will be made on your corporate income tax returns. The property which must be acquired after April 18, 2021 […]
Archive | Financial Literacy
When Do You Budget for Expenditures?
When preparing a budget do you put the expenditure in the month you are going to spend the money or the month the accountants are going record the expense. For example, your property taxes are due in September, but that payment is for the six month period from October 1 to March 31. Let’s work […]
Your Budget Categories Should Follow Your General Ledger
If you prepare an annual budget, your budget should follow the same categories as your financial statements. This makes sense, but I see budgets that are prepared using categories that do not appear in the same way on the financial statements. For example, the budget shows a breakdown between online and offline advertising and the […]
Backups for Cloud Based Software
Cloud based accounting programs such as Xero, Quickbooks and Sage (among others), are becoming more popular. Canada Revenue Agency requires that any financial record which was created electronically, must be maintained electronically. What this means is that you must have access to the software which was used to create any financial records. If you cease […]
Do You Still Have a CERB Tax Bill From 2020?
When the 2020 personal income tax returns were filed in April 2021, many people owed income tax because the government failed to withhold any income tax from CERB payments. These taxpayers were given another year to pay their tax bill without there being any interest charged. That was great news in April of 2021. Hopefully […]