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BUSINESS BOOTCAMP

Accounting Basics For Business Owners

Shannon L. Stewart, CPA CGA

Physiotherapy AlbertaConnect + Learn Conference 2019

Shannon Stewart, CPA CGAManager, Corporate Services

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AGENDA

Starting a Business

Business Types in Canada

Financial Records

Accounting 101

Hiring a Bookkeeper

Hiring an Accountant

Time for Questions

STARTING A BUSINESS

Planning + Researching

• Don’t Jump too Quick

• Consider all Options

• Consider all Costs

• Seek Legal Advice

• Seek Tax Advice

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STARTING A BUSINESS

The Process

• Choose a Business Type

• Choose a Business Name

• Register the Business Name

• Register the Corporation

BUSINESS TYPES IN CANADA

Sole ProprietorshipSimplest form of businessLeast expensive optionReported under your name on your T1 Tax Return

PartnershipBetween two or more peopleEases liability burdens of Sole ProprietorshipGeneral Partnership vs Limited Partnership

CorporationDistinct legal entityFederal Incorporation vs Provincial IncorporationExtra-Provincial Incorporation

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FINANCIAL RECORDS

• All accounting documents

• Any other financial information documents

• Must be kept organized

• The type of information your records contain depend on:• your business type• the format you use to keep your records (paper vs electronic)• if you are a GST/HST registrant• if you are an employer

• You must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to

• The tax year is the fiscal period for corporations, and is the calendar year for individuals

ACCOUNTING 101

Overview

• Picking a Software

• Banking

• GST Requirements

• Payroll Requirements

• Business Taxes

• Hiring a Bookkeeper

• Hiring an Accountant

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ACCOUNTING 101

• Picking an Accounting Software• Many low-cost options for sole proprietors and corporations

• Look at future capabilities (for potential growth)

• Use trial periods to see which one suits your style• If you plan to hire a bookkeeper, they may have a favourite

• Banking• Sole Proprietorships do not require:

• separate bank account

• separate credit card

• Corporations should have everything separated for liability reasons

ACCOUNTING 101

• They have a bad reputation

• They speak a different language

• One of the most complicated tax systems in the world!

• GST Requirements

• Payroll Requirements

• Business Taxes

The CRA (Canada Revenue Agency)

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HIRING A BOOKKEEPER AND/OR ACCOUNTANT

Organization SkillsHelps keep the business organized and up-to-dateWill help with the stress and anxiety of learning accounting

AvailabilityBusy times can mean delayed service

Accounting SkillsLook for high attention to detail

ExperienceRead reviews and not just their resumeDo they have knowledge of the industry?Ask others who they use and why

QUESTIONS?