January 10, 2015
I recently did a presentation to a local business club. As part of the presentation it contained some observations of the top 10 good business practictes that successful business people have in Canada which are as follows:
Top 1-10 Good Practices of Successful Business People 1) File your HST, Corporate tax, Payroll, and T4's and T5's on time. Tax penalties are high for late filings in several ways.2) Ensure you hire a law firm to prepare your incorporation documents and annual minutes.3) Have your accountant prepare your annual financial statements, tax returns, and annual HST returns. Also, reviewing or prepare T4's for salary and T5's for dividends is highly recommended . Filing properly the first time is best versus going through CRA a second time.
4) Ensure you are registered for WSIB -when required, and file EHT returns when your payroll is over $450,000 (2015 wage exempt limit)5) Hire an experienced bookkeeper or controller for your business. These are professionals hired internally that assist with the day to day operations, and provide the information to the external accountant at year end. Software is a tool for data entry and you still need to know how to operate it as it is not the solution, just a tool that good staff use.6) Use a business insurance broker to get the appropriate insurance package for you. Remember, you get what you pay for and cheap insurance is not always the best.7) Have a IT professional either on staff or as a supplier. Ensure they have back ups prepared on key critical information and implement the use of passwords. Be prepared for problems.8) Know when you are over your head and can’t do it yourself, then contact a professional. This requires being honest and fairly evaluate your own skills and priorities. This is tough for many people to do and remember don’t get in over your head as it likely costs you money.9) Use the Income Tax Act to your advantage, re IPP-Individual Pension Plans, Salary and Dividend mix for corporation and RRSP’s and TFSA’s on a personal basis. 10) Value your banker and mortgage broker relationships. When you need money nobody wants to lend to you and when you have money then everyone seems to want your business.
Hope you enjoyed them and if you need some help, please feel free to contact me at 905-898-3355.
Have a great and prosperous 2015!
Notice to Reader - Warning and Disclaimer
This monthly update was prepared on January 10, 2015.
When considering any of ideas from this article, please contact the writer directly before acting on them. This will ensure that any information has been updated.
Without contacting the writer before implementing any of these items you will bear all the responsibility for any tax assessments and or business issues that may arise from this information.
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