Disclaimer: Different strokes for different folks, as they say.
The opinions expressed herein are just my own. These are based on my experience running a bookkeeping firm with hundreds of clients over the course of ten years. No two accounting professionals are alike; we all work with different methods and systems, and it is not my intention to discredit or throw shade on anyone else or any technology they prefer to use.
This is merely a starting point for entrepreneurs to gain...
Last week on the blog, I shared part one of my list of the top ten challenges.
Let’s continue with the rest of the list!
Once again, these are my opinions and certainly not the only challenges new business owners face, and the list is in no particular order.
Three big ways this can manifest:
You’ve taken on too much because there’s no one else, or you don’t trust anyone else to do it right.
You’re still working for...
All businesses grow from an idea. Like a seed, they need nurturing, the right conditions, and persistence to blossom.
A lot can happen in the early stages that make us lose sight of the passion that drove us to act on the idea in the first place.
It takes courage to stay the course, and the process can become overwhelming, even exhausting.
Here are my top ten challenges of starting out in business. (Note: this is a 2-part blog with the top five coming next week!)
I’m sure you can...
Sometimes in business, your only option is to guess.
When a decision must be made right now with limited information.
Or when you’re trying out a new marketing technique.
We suppose, figure, approximate on a daily basis.
(I will estimate about how many of my business bookkeeping clients guessed about their kilometers at tax time, though – about 90% of them.)
The problem with guessing...
A common dream of many entrepreneurs is one day buying their dream home.
A status symbol for some, it’s the manifestation of years of hard work, determination and success.
Others just want a little corner of the world to call their own.
At last, you feel you’re there.
Off you go to your financial institution about that home loan.
They ask to see the financial records for the last two years, to ensure you’re making money and that you have ongoing...
I say that because everything on this list I learned the hard way during my first year in business.
Not every lesson came hard, mind you; I ran my own bookkeeping business after all, so I came equipped with a lot of the tax know-how.
Nonetheless, when you’re running a business, you’re hard at work everyday.
Often times, we only learn when we encounter a situation that makes us realize we don’t know the thing we need to know.
This list is...
It’s a lesson that every business owner has to learn.
For some, it comes after the first year in business when the realize they weren’t prepared, or after a few years of struggling to stay afloat.
For others, it’s something they take time to learn early on, and these entrepreneurs have a much higher shot at success.
It’s a little like when your kids go out to play in the yard.
Owing the CRA happens when you’re in business. No brainer, right?
It is, once you learn that this is how the system works.
For new, inexperienced solopreneurs in particular – such as those with home-based side businesses- it can be a shakeup to realize that you don’t pay taxes like you used to.
There’s no employer to deduct tax for you.
Moreover, if you haven’t tracked your expenses properly all year, the tax bill could be shocking.
The Income Tax Act is A HUGE act.
At its core, it stipulates that what you claim on your business taxes must be reasonable.
Also, that you are responsible for being honest with your submissions, and that by claiming deductions, you not only understand why they are reasonable, but can prove them to be so through supporting documentation and receipts.
Disclaimer: this article pertains to business tax returns. For personal tax, software programs tend to be okay- because there...
Thank you for joining me for Part 2 of our write off series!
In our last article, we looked at The Single Biggest Mistake Entrepreneurs Make.
If you haven't check out Part 1, you can do so right here.
Let me first recap the definition of "write off".
A "write off" is an expense that is applied against revenues that reduces the amount of profit made, and the amount of taxes that are paid.
If you're not keeping your receipts, even for your smallest of purchases, then...
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