If the business you work in is anything like other small businesses, then your role of office manager means you handle just about anything!
Inventory forecasting is critical for the smooth operation of any stock-based business. Managing demand can be tricky, however, if a large part of your inventory is subject to seasonal demand.
A Chat With Sanford Stein. Thinking about venturing into retail? Good news: there’s never been a greater time to do it.
Is your business plan due for a facelift? Maybe it’s been a while since you last looked at your plan or maybe your business has been going through significant changes recently.
Retailers in various industries—be it fashion, homeware, or food—are reaping the benefits of Instagram.
In an August 22, 2017 Release (2017JTT0137-001468) it was noted that $1,500 grants were being offered to help resume operations for those affected by BC wildfires. Eligible organizations include small businesses, First Nations, and non-profits located in certain areas. For further details on qualification, or to apply for a grant, visit redcross.ca. Applicants have until October 31, 2017 to apply.
In a January 29, 2016 Tax Court of Canada case (SNF S.E.C. vs. H.M.Q., 2013-1207(GST)G), CRA had denied over $500,000 of ITCs, and assessed penalties and interest, in respect of GST and QST paid to welve suppliers. Unknown to the taxpayer, the suppliers did not remit the tax.
The taxpayer, a scrap metal dealer, obtained evidence of prospective suppliers’ GST and QST registration prior to accepting them as suppliers.
Determining the status of an appeal can be difficult.
A variety of issues related to the T1135 form
In a June 21, 2017 Tax Court of Canada case (Lawson vs. H.M.Q., 2015-3474(IT)I), at issue was whether the wholly dependent credit could be claimed where only one party was providing a cheque which represented the net of each party’s child support liability.Where both parties are required to pay, either may claim the credit (Subsection 118(5.1)). At issue was whether the agreement, in fact, created two obligations to pay or just one.
A July 25, 2017 New York Times article (Canada Debates Whether Gift of Leibowitz Photos Is Also a Tax Dodge, by Sopan Deb and Colin Moynihan) discussed the acquisition of 2,070 photographs by American portrait photographer Annie Liebovitz and their donation to the Art Gallery of Nova Scotia.
In a June 6, 2017 French Technical Interpretation (2015-0617331E5, Roy, Louise), CRA considered whether the transfer of a deceased’s TFSA to their spouse could constitute an exempt contribution. To the extent the payment is made in accordance to the will, CRA opined that the payment is made as a result of the individual’s death.
In an August 16, 2017 Tax Court of Canada case (Radelet vs. H.M.Q., 2015-2089(IT)G), at issue was whether a waiver (Form T2029) signed by the taxpayer was enforceable such that CRA could assess the taxpayer beyond the normal reassessment period. The taxpayer asserted that the waiver was executed under duress and/or coercion and that the taxpayer failed to understand that the normal reassessment period was extended by the waiver.
In a May 18, 2017 Technical Interpretation (2017-0690311C6, Danis, Sylvie), CRA considered the addition to the capital dividend account(CDA) where two corporations were the beneficiaries of a corporately-owned life insurance policy.
2017 Advance Income Tax Ruling (2016-0675881R3), CRA ruled that the related party exemption (Paragraph 55(3)(a)) would apply to a proposed internal reorganization, such that Subsection 55(2) would not reclassify a deemed dividend into a capital gain.
In a June 22, 2017 Tax Court of Canada case(Grant vs H.M.Q., 2014-1399(IT)G), at issue was whether the director of a corporation could be held liable for $66,865 in unremitted source eductions, related penalties, and interest six years after the corporation went bankrupt. The taxpayer presented various defenses.
When a commercial obligation is settled or extinguished for an amount less than the principal amount of the debt, Section 80 applies the debt forgiveness rules. CRA notes that the forgiven amount is applied to reduce “tax balances” or is included in the debtor’s income under Subsection 80(2) or (13).
Since release of the Department of Finance’s Tax Consultation on Private Corporations on July 18, 2017, there has been much discussion and debate over the proposals. Below are a number of issues that have been raised, in addition to those noted in the basic discussion of the proposals (see VTN 433(5)).
One of the conditions required to claim an ABIL is that the loan was advanced to earn income(Subparagraph 40(2)(g)(i)). The loan agreement stipulated that interest at 6% was to be charged, but payments would not commence until 2009, which, as it would turn out, was after the business eventually ceased. The Minister argued that no interest was charged, and therefore, there was no intent to earn income. This was partially based on accounting records of the daughter’s company which were inconsistent in their reflection of accruing the interest.
A specialized indirect verification of income (IVI), a “yield analysis”, was completed to determine the unreported income. The primary variables included the number of plants in the crop, the expected yieldof dried marihuana from each plant, the frequency of harvest, and the price at which marihuana is sold. In this case, the taxpayer did not dispute the variables of the analysis, but rather argued that nothing was produced in the first few years, and that there was no profit in the third due to the seizure of crops and the claim that what was produced was for personal use.
In an April 28, 2017 Technical Interpretation (2017-0699741I7, Waugh, Phyllis), CRA was asked whether a reimbursement for tax advisory services obtained as a result of an employer payroll error would be a taxable benefit. The errors in question arose from the Phoenix pay system used for public service employees (see VTN 422(10)).
In a February 20, 2017 Tax Court of Canada case (Mullings vs. H.M.Q., 2016-2938(IT)I), at issue was whether preventative care associated with phenylketonuria (PKU) would be eligible for the DTC. Without the ongoing care and strict monitoring of the individual’s diet, permanent and severe rain damage would occur.
Finance releases and CRA releases
CRA assisted in collecting a six figure U.S. tax penalty for unfiled disclosures from a U.S. citizen resident in Canada.
An April 28, 2017 Tax Court of Canada case considered whether a practicing lawyer had a source of business income in respect of her law practice for the 2011-2014 years.
Where an individual is married or in a common-law relationship, GIS entitlements are based on the combined income of a couple.
The CRA Charity Directorate provides a number of fairly comprehensive and easy to read checklists relating to various responsibilities associated with operating a registered charity.
where a family member of a deceased individual would like to be recognized by CRA as the person or persons who will manage the tax affairs of the person who died without a last will and testament, they can now do so by completing a CRA Form (Affidavit for intestate situation, Forms RC549 to RC561, with no form for Quebec, and no RC554).
If operating as a mid-market business in the U.S., be prepared for the possibility of more scrutiny from the IRS.
Two Technical Interpretations (May 26 and March 3, 2017) considered whether support provided to a refugee would be required to be reported on a Form T5007, Statement of Benefits.
In a recent release (Excise and GST/HST News No. 102), CRA reminded taxpayers that they may place a non-compliance hold on a taxpayer’s account if they are a non-compliant GST/HST registrant.
In recent years, CRA has particularly focused on tracking underground economy activities. One way they are doing this is by obtaining information from key 3rd parties.
As we mentioned in a previous post, putting on new staff comes with a mountain of onboarding paperwork. But, that certainly doesn’t mean your new starter’s first day should be all about filling in forms.
Dennis Yarrow began Yarrow Plumbing back in 2003. Before that, he cut his teeth in the plumbing industry working in Papua New Guinea where he learned how to manage a team of 50 (and some other life skills he hadn’t bargained for).
What is cashflow management? In its simplest form, cashflow management is doing everything possible to ensure that money flows into your business as quickly as possible, and leaves the business as slowly as possible.
Many businesses use trade discounts to simplify variable pricing, protect a market recognised price point, stimulate sales or reward customer loyalty.
In any business, large or small, good teamwork is essential for morale, productivity and efficiency.
Brewery inventory management can be done in a variety of ways. Often, companies will rely on a combination of methods, including web apps, written notes and spreadsheets.
When I designed the first Spotlight Reports, I usually included an Action Plan to close the circle between great data analysis and goal-setting.
Have you ever heard about the parable of the boiling frog?
Aside from efficient inventory management, teamwork is an incredibly important component of the ‘successful business’ recipe and if left out, the result can be a real flop.
These days, managing HR in a growing business is a constant task. As an HR manager, you’re probably overloaded with work and you never seem to get to the bottom of it all.
Forecasting is the process of estimating the effects trends, costs and external factors will have on your business in order to give yourself time to prepare.
Whether you’re trying to bridge a cash gap or secure funding to grow your business, the Xero marketplace offers a suite of apps that can help
Let’s get straight to the point: ecommerce is NOT killing brick-and-mortar retail.
At a certain point, every growing business needs to take a leap and invest in new technology. It can be daunting and expensive, but the rewards can greatly outweigh the costs and stress.
There are many reasons why you may want to improve cash flow in your business. Maybe you’re looking to free up some cash to put towards growth, or maybe you’d like to build up your cash cushion to protect yourself from any bumps in the road.
CRA has provided commentary on its website to discuss recent changes to allow the electronic distribution of T4 slips. In the past, an employer could provide a T4 electronically only with the employees consent. For 2017 and subsequent tax years, employers may also satisfy their obligations by providing electronic versions without specific consent, provided other criteria are met.
In the past, taxpayers in certain designated professions (i.e., accountants, dentists, lawyers, medical doctors, veterinarians and chiropractors) may have elected to exclude the value of work in progress (WIP) in computing their income for tax purposes. This essentially enabled these professionals to defer tax by permitting the costs associated with WIP to be expensed without including the matching revenues.
In a March 9, 2017 Technical Interpretation, CRA commented on the tax filing and withholding requirements related to a non-resident individual providing services to a Canadian company.
The Voluntary Disclosure Program (VDP) provides taxpayers (individuals, corporations, partnerships, trusts, etc.) the opportunity to fix incorrect or incomplete previously filed tax returns (or returns that should have been filed) with a reduction to penalties and possibly interest. CRA recently released fairly substantial proposed changes to the current program, effective January 1, 2018. The proposals are expected to be finalized in the fall of 2017.
The proposals will create two tracks for income tax disclosures.
In a March 31, 2017 Technical Interpretation, CRA commented on the tax consequences of a charity returning a donated property to the donor. This could occur, for example, when a donation was made specifically for a project that had been halted.
When using this tool, individuals should have their CPP Statement of Contributions, financial information about their employers pension, most recent RRSP statement, and any other information related to savings that will provide for ongoing monthly retirement income.
A death benefit is a payment received subsequent to the death of an employee, in recognition of the deceased employees services.
Historically, CRA has stated that an employee enjoying a discount on the purchase of merchandise from their employer is only taxable if a limited number of specified situations exist, such as where the employer makes a special arrangement
On July 18, 2017, Minister of Finance, Bill Morneau announced the release of a Consultation Paper which focused on three tax practices that the Government considers to provide an unfair tax advantage to private corporations and their owners. These include:
Some quick points to consider
How do you know which Xero Accounting Add Ons to use?
You’ve done the hard work by setting up your business and establishing solid foundations with a good client base – congrats! So how do you expand, and do so profitably?
Inventory management can be overwhelming. There can be an incredibly large amount of tangible inventory, which can translate to a huge amount of responsibility and pressure to manage this inventory properly.
We live in a data-driven age - so why not use data in your business to solve problems, be more efficient and invent new products?
Choosing a pricing strategy is a difficult decision, but one that every business needs to make. Pricing strategy affects most aspects of a business, including its revenue, market share and profitability.
With global recessions, increasing oil prices and increasing competition, saving money wherever possible and thereby maximising profits is the name of the game.
The role of a tax accountant has been continuously changing over the course of the last 50 years, and it is currently undergoing yet another transition period with the growing popularity of cloud accounting.
To be successful in business, you need to be organised, have a clear plan for where you’re headed and be confident with the processes you have in place.
Mobile technology has revolutionized the way modern society does business and permanently changed the retail landscape.
There are a multitude of things that can go wrong throughout the supply chain, exposing the firm to different kinds of risks.
More than just dispatching machines, handhelds have become as ubiquitous to field service as the screwdriver and wrench.
Millennials – young people born between the 1980s and early 2000s – make up an increasingly large proportion of drinking-age customers. It’s important that good hospitality businesses understand that.
We have spoken to hundreds of business owners and thousands of their employees over the last twelve years.
There are many factors to consider when you’re selecting an ecommerce platform, and when you first start selling online, it can be hard to find one that’s the right match.
No one ever starts a business with the intention of spending most of their time tied up in the administrative tasks that come with operating one.
More and more manufacturing companies are beginning to use cloud-based manufacturing systems to improve the way their business functions.
Advances in technology over the last two decades have shrunk the world; travel is inexpensive, cross border payments are fast and businesses communicate in real-time.
Many small business owners don’t give a second thought about the need for clear communication.
If you’re in business, making decent money is important. Sometimes, though, it doesn’t always work out the way you’d planned...
You need to keep track of transactions for the tax office, lenders, but most importantly for yourself, as a business owner.
Helpful and informative retail books abound everywhere you look these days.
The thing is, employee wellbeing and happiness isn’t just about nap rooms, onsite massages, and cafeterias serving healthy food and snacks (though that would be nice!)
Every business owner knows that as soon as you start hiring people, there’s a whole heap of important and must-do HR related tasks and compliance requirements that goes with them.
Machine learning has the power to change how we look at field service – what it means to contractors and customers alike.
Due to the nature of the distribution model where distributors profit by selling inventory to their customers, failing to manage inventory well can be a major liability for distributors.
Have you ever sat back and wondered how giant companies such as Apple, Walmart and Ikea became so successful both in their reach and their inventory turnover?
Over the past five years, mobile devices have begun to dominate the consumer landscape around the world.
Businesses today are quickly adopting cloud software as the benefits become more apparent and even necessary to keep a competitive edge – benefits like less paperwork, greater efficiency, and time savings.
Even if a business has some other, high value, assets such as factory plant, inventory is likely to essential to the business’ ability to trade profitably.
It’s the Holy Grail of business: increasing the number of profitable hours in a day.
Have you been following the news about retail recently? If you have, then you may have noticed that the retail news outlets have been filled with doom and gloom lately.
Inaccurate information about your company’s expenditure can greatly inhibit your capacity to make and maintain a successful business.
Retailers have historically dominated the commerce landscape. Several years ago, industry trends and top products were set by the stores selling them.
When a visitor spends time browsing your online store or bricks-and-mortar outlet, they’re looking for something. And when they find it, they’ll be tempted to buy it.
Remember the old (and slightly misogynistic) phrase Happy Wife, Happy Life! ? Well, it turns out there is a workplace equivalent: Happy workers, productive business! (and no – we couldn’t make it rhyme).
How do you know which Xero Accounting Add Ons to use?
Small and Medium-sized Enterprises (SME) are companies that are independently owned and managed with less than 250 employees in their ranks and bringing in less than 50 million euros per year.
It doesn’t matter how large or small your store is, or how many of them you’ve got—if you’ve got a point of sale (POS), you’ll see big benefits in switching from a simple cash register to a full-featured, cloud-based POS platform.
Staff training is one of the best investments you can make for the future success of your business.
Picture this: You’ve just about closed a sale, and the shopper made up their mind to buy a product. What do you do?
Are you equipped to handle retail theft and robberies? Whether you answered yes or no to that question, keep reading.
Look at a company with a reputation for strong employee engagement and you’ll find a high performing business. We’re not making this up.