Check out the latest articles from our CPA team, focusing on providing the most relevant accounting and tax advice for individuals, families, and businesses.
In yesterday's announcement, the Canadian government introduced extended deadlines and added flexibilities for the Canada Emergency Business Account (CEBA) loan repayments. The CEBA Loan Extension is a move aimed at providing relief to...
Tax Implications of a Share Sale An asset vs share sale is a complex tax scenario to address. Let's start with a share sale first. A share sale is essentially a purchase of the entire business. The buyer acquires the shares of the company...
![A Primer on eCommerce Accounting for Business Owners [+Actionable Checklist]](https://thinkaccounting.ca/wp-content/uploads/A-Primer-on-ECommerce-Accounting-min-400x250.jpg)
Introduction to eCommerce Accounting Practices in Canada Imagine this: It’s a crisp fall day in Toronto, and you, an ambitious entrepreneur, have just launched your first eCommerce store. Maple leaves are falling, and so are the barriers...
Learn what contribution margin is and why it is crucial for your business’s profitability. Discover how contribution margin helps you analyze costs, set prices, and make informed decisions. Enhance your understanding of contribution margin’s significance in maximizing profits.
A new underused housing tax (UHT) went into effect in Canada on January 1, 2022. The tax affects property owners with vacant or underused housing and requires them to file an annual UHT return with the Canada Revenue Agency (CRA). In the...
What are Shareholder Loans? Shareholder loans are funds that a shareholder of a corporation lends to the corporation or borrows from the corporation. For the purposes of this articles, we will focus on the part of money being borrowed by...
In recent years, the idea of a "staycation" – taking a vacation close to home – has become increasingly popular. With the COVID-19 pandemic and the resulting travel restrictions and safety concerns, staycations have become even more...
What is Profit First Profit First is a financial management method that was developed by entrepreneur and author Mike Michalowicz. The Profit First method is based on the idea that business owners should prioritize profitability over...
Foreign tax credits in Canada are a way for Canadian taxpayers to reduce the amount of tax they owe on foreign income. To claim foreign tax credits, taxpayers must complete and file Form T2209: Federal Foreign Tax Credits and provide supporting documentation. Only taxes similar to Canadian taxes are eligible for foreign tax credits, and the amount of foreign tax credits that a taxpayer can claim is limited to the amount of Canadian tax payable on the foreign income.
Meet Bob. Bob is a divorced 64-year-old man living in Caledon, Ontario. Bob has five kids who are all over the age of 18. Two of those children are married and he is a recent and proud grandfather to a new little baby girl. Bob retired six months ago and is enjoying spending more time up at the cottage in the Muskokas, as well as taking a little day trips to historic sites around Ontario. He’s a huge history buff! Bob had a Will drafted with his ex-wife over 30 years ago now.
Backgrounder: CEWS Extension - Speech from the Throne: Commitment to extend the Canada Emergency Wage Subsidy (CEWS) The government’s Speech from the Throne confirmed its intention to extend the CEWS until June 2021;On October 14, 2020,...
Note - The post below is NOT sponsored by TransferWise and this is not a formal recommendation to use TransferWise. At Think Accounting, we work with several e-commerce business owners. In addition, several prospective e-commerce business...
Gone are the days when you would take a shoebox of statements and receipts to your accountant once a year. A few months later, your accountant would produce your financial reports and tax return based on the data provided. Perhaps you...
First - Explore the Feelings That Your Work Creates Whether you are Creative Agency owner, an IT consultant, a Lawyer, a Landscaper or some form of a professional who charges for their services based on a service instead of a product,...
As of October 1, 2020, Personal Real Estate Corporations (PREC) have been permitted in Ontario. This is fantastic news for Ontario Realtors and will allow those in higher tax bracket to defer (and potentially save) on taxes.
You've Started A New E-Commerce Business in Canada And you've started selling into the USA - on www.amazon.com or drop-shipping your Shopify store orders. As if Canadian sales and income tax rules weren't complex enough for you, you now...
Just like half of the capital gain is tax free for an individual, a capital dividend account is a mechanism by which the shareholders of a corporation are able to withdraw that half of the capital gain that is not taxed.
It’s pretty simple if you think about it.
So, you’ve started an e-commerce business or have an existing one but your accountant is still a traditional one.
Check out this post for why you should hire a specialized e-commerce accountant for your business!
When you use the GST/HST quick method for your business, you still charge the applicable GST and HST on your supplies of taxable goods and services. However, to calculate the amount of GST/HST payable, multiply the revenue from your supplies (including the GST/HST) for the reporting period by the quick method remittance rate, or rates, that apply to your situation.
Did you incur any medical expenses in 2019? Perhaps you are getting ready to put everything together for your 2019 personal tax return, and are preparing a list of medical expenses eligible for deduction. Will these medical expenses even...
T4 vs T4A - What's the Confusion? There is a common confusion each year among business owners understanding when to issue a T4 vs T4A. Business owners who employ several individuals may have staff working full-time, part-time,...
What is WSIB? Workers Safety & Insurance Board (WSIB) also referred to as Workers Compensation Board in the past is an organization managed by the Government of Ontario. The purpose of WSIB is to provide benefits as payments and...
Residency of a Corporation is a very important topic to understand as a business owner. This includes knowing what it means to be a corporation resident in Canada v/s in a foreign jurisdiction. There is a big difference in taxation and...
What does it mean to be compliant with CRA? The thought of being compliant with CRA may cause some initial anxiety among business owners, especially if you are behind on your taxes. This is understandable because business owners are busy...
It’s almost the end of 2019 and perhaps somewhere in the back of your mind, you’ve started thinking about your RRSP strategy for 2020 to maximize your tax refund when you file your 2019 personal tax return. In this blog post, we'll go...
NTR Financial Statements or Notice to Reader Financial Statements may ring a bell if you’re a business owner who’s ever applied for a bank loan, but to others, or to new business owners, the term “NTR” or “Notice to Reader” may sound...
UPDATE FOR 2022/2023 TAX YEAR Please read our blog post on the newly announced Underused Housing Tax (UHT) Return for non-residents, and certain Canadians, who own Canadian residential real estate. As a non-resident owing Canadian...
Has the thought of hiring interns crossed your mind? Each year you hope to accomplish many projects, but your employees are already swamped with loads of work. Cash flow is always tight and your start-up or growing organization needs all...
Received a GST/HST Audit Letter – Fear not! If you are the owner of a small business corporation and you just received a CRA GST/HST audit letter, do not panic. In one of our earlier posts, we talked in general about navigating a CRA...
Studies and surveys have indicated that every year a large number of Canadians either end up missing their tax filing deadlines imposed by CRA, or meet them at the eleventh hour. Besides the stress, missing tax filing or payment deadlines...