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Every year, thousands of businesses hit the ground running. However, according to Industry Canada, only half of them hit a five-year mark. Innovation, Science and Economic Development Canada statistic states that as much as 96% of new businesses survive one year, 85% manage to get through 3 years maximum and only 70% survive for a full five years.

The tax filing season can always be a headache. The sooner you get it all done, the better. Most Canadians fail to look at all the deductions they can claim to reduce the tax amount. Additionally, not doing the taxes, just because they are afraid to make a mistake, has caused Canadians to skip many deductions.

The tax filing season can always be a headache. The sooner you get it all done, the better. Most Canadians fail to look at all the deductions they can claim to reduce the tax amount. Additionally, not doing the taxes, just because they are afraid to make a mistake, has caused Canadians to skip many deductions.

If you are just getting started with your startup, you know the different challenges that lie ahead. You could have different reasons to look to start your own business.

The Start-Up Visa or Entrepreneur Visa has enabled many dynamic investors and entrepreneurs to come to Canada and set up their business. More than 132 innovative entrepreneurs have used the visa to make Canada more competitive on the international map and create employment.

Xero and QuickBooks are two of the most popular cloud-based accounting software in the market. QuickBooks has 1.87 million subscribers, while Xero is fast catching up with 1 million subscribers. Both do an excellent job of maintaining your accounts, but which one is right for you?

Xero has become immensely popular with small and medium businesses for its simpler approach to bookkeeping. With over a million subscribers, Xero is soon to become the most used cloud-based accounting solution across the whole world. But what exactly makes Xero stand out from the rest?

Around one-third of small businesses outsource a business process. Accounting has become one of the most common processes that are outsourced by small to medium companies. Currently, Canada has emerged as top markets to outsource your bookkeeping. In fact, the accounting industry in the U.S. generated a revenue of around $6 billion in 2018.

Xero and QuickBooks are two of the most popular cloud-based accounting software in the market. QuickBooks has 1.87 million subscribers, while Xero is fast catching up with 1 million subscribers. Both do an excellent job of maintaining your accounts, but which one is right for you?

If you are like many business owners, you might directly sign your return and send it to the CRA without even reviewing. But as courts have implied, it’s your responsibility to ensure your return is accurate. Otherwise, you may attract huge penalties and even face legal hassles.

While some consider this is an additional burden on the small business owners, the purpose of these beneficial ownership rules is to increase corporate transparency and to help law enforcement agencies to combat pressing issues like tax evasion and money laundering.

If during any time of the tax year a non-resident corporation has carried out business in Canada or have disposed of taxable Canadian property, it must file T2 Corporation Income Tax return. A non-resident corporation must file schedule 97 with its T2 Tax return.

If you are a Canadian and spend winter in U.S. you may, unknowingly, become a US resident under the tax laws of United States. So, now you are tax resident of both Canada and US. Snowbirds are the Canadians spending their winters in United States.

A lot of time self employed persons or small businesses ask the questions about deduction of travel expenses. Sometimes, for small businesses in particular, there is a misguided information available for these entrepreneurs or small business owners that they can write-off “all” of their travel expenses.

If you are a business owner, then you know how it can be to get overwhelmed when it comes to finances. You need to look to maximize profitability, or else you might not get the results you were looking for in the first place while you started up.

If you are a business owner, then you know how it can be to get overwhelmed when it comes to finances. You need to look to maximize profitability, or else you might not get the results you were looking for in the first place while you started up.

Often, businesses in Canada use multiple entities to run their operations or there are allocations of Management fee because of the centralization of management within a corporate group. Management fee mentioned in this blog is not the one as used in Investment management. Charging management fee from one entity to another is perfectly legitimate as long as the requirements are met.

Running a business, can be quite expensive, especially when you hire full-time or part-time employees for tasks that can be conveniently outsourced. One of those tasks is accounting, which can eat up a lot of your money if you hire accountants or bookkeepers. Not only does outsourcing save you a lot of money on personnel, but also helps you scale up your business with a lot more ease.

Holidays season is in full swing and Year 2019 is coming to an end in few days. Soon you will have to file your income tax returns for 2019. We are giving some Tips for end-of-year individual tax preparation whether you are using a professional tax services or filing it yourself.

Holidays season is in full swing and Year 2019 is coming to an end in few days. Soon you will have to file your income tax returns for 2019. We are giving some Tips for end-of-year individual tax preparation whether you are using a professional tax services or filing it yourself.

The secret of a successful business venture lies in its well-kept financial records and accounts. However, new business owners find it very difficult to handle time between managing their business and keep track of daily tasks such as bookkeeping.

Contributing to a Registered Retirement Savings Plan (RRSP) is a great way to grow your savings in a tax-deferred environment. Whatever income earned inside the RRSP is not taxed. You don’t have to worry if you could not contribute to RRSP during the calendar year ending on December 31. You still have two months after the year end to make contributions and still claim the deduction in current year.

For the tax years starting January 2018, TOSI Rules are applicable. Expanded TOSI rules apply to adult individuals receiving amounts from the “related business”. Prior to 2018, income sprinkling was used as a tax planning tool in Canada, where low-income family members were issued dividends from a corporation. Individuals under 18 years of age were subject to “kiddie tax”. This has changed now and Tax-on-Split-Income rules have been expanded to include adult individuals.

Small business owners are often faced with a crucial question of how they should get paid from their corporations. Two common ways small business owners get paid from their corporations is either through a Salary or a dividend – or sometimes a mix of both.

Dividends are paid from the after-tax income of the corporations to shareholders. Whether you want to withdraw salary from your corporation or pay dividends to yourself, it depends on specific tax situation.