Trusted Tips and Resources

Trusted Tips & Resources

Trusted Saskatoon Bookkeepers share a tip on Bankruptcy

Tip on Bankruptcy, on of the scariest words to a business owner: 

There have been a few stories of bankruptcies in the news lately and how it affects the clients of the business affected. This got our bookkeepers wondering are there other businesses out there that we can help before it gets to this point?

          

As a business owner how can you avoid the troubling financials and potential consequences? Well are we ever glad you asked! 

1. Pull your head out of the sand

      

If you do nothing and ignore even the smallest blips in your business it can come back to bite you. If you have outstanding amounts owing to your creditors and you do nothing what will happen? The creditors will increase their efforts to get money from you, and your situation will get worse.

Make sure you are always aware of not only the bills your company must pay, but also the money outstanding that is due to your company. 

2. Hire a qualified Bookkeeper

This is a crucial step. When you start a business it is one of the first things you should do. The sooner your have a great bookkeeper taking care of you either in house or external the better. We have found in our experience that some of the people that wait or try to do it themselves end up spending more overall on bookkeeping services than those who found a bookkeeper immediately. 

3. Get yourself a great Accountant

Your accountant is a very important part of your company’s financial team and imperative for financial wellness. Accountants not only do your year end accounting and file your income taxes, but they offer invaluable advice for businesses that help to keep you on the right track. 

 

4. Talk to a Financial Planner

Financial Planners will help you with life insurance and investments. They have so much to offer their clients to keep them in great financial wealth and to plan ahead for the future should something unforeseen happen. These rock stars can also help you retain employees but providing benefit plans, rrsp's and pension programs. 

5. Know what you are good at

The best advice we give all our clients is "Do what you know". If you hate numbers and the thought of coming home to a pile of paperwork makes you cringe and rather do house cleaning or other tasks, you need a bookkeeper pronto! Is this a bad thing you ask? NO WAY! We love what we do and love to help business owners reduce their stress and get back to doing what they love! 

 

Trusted Saskatoon Bookkeeping experts share Vacation pay on vacation pay?

 

Here they share Vacation pay on vacation pay? What this mean for Saskatchewan Businesses:

Vacation pay on vacation pay? Does that even sound right?

 

 

 

 

 

 

 

 

 

 

 

We didn't think so either. 

 

After some arduous searching and a few phone calls to Sask Labour,

We found this NEW legislature for Saskatchewan that for some reason they've been keeping secret!

If you pay employees vacation pay on each of their pay cheques, you now have to pay vacation pay on the vacation pay!

 

Calculating and Paying Annual Vacation Pay

Most employees are entitled to vacation pay, no matter what hours they work or how they are paid.

There are two options for paying out annual vacation:

Paying employees going on annual vacation; and

Paying employees not taking annual vacation within 11 months of the vacation time entitlement.

 

For example: 

Salary for pay period = $1,200.00

Commission for pay period = $300.00

Total Wages = $1,500.00

Vacation pay on total wages = $1,500.00 x 3/52 = $86.54

Vacation pay on vacation pay = $86.54 x 3/52 = $5.00

Vacation pay on cheque = $91.54

In this example, vacation pay of $91.54 would be payable on the employee’s pay cheque. It is assumed that the employee will save vacation pay over the course of the year, and use the money when going on vacation leave. 

In some circumstances, employers and employees will agree to have the vacation pay paid on each cheque – although not provided for under the Act, as long as there is a mutual agreement an employer can pay vacation pay this way. 

Employers must have a signed document stating that they are paying out vacation pay on each cheque. Signed by both the employee and the employer. 

It is important for the employer to maintain good records of the payment and ensure that it is separately identified on the employee’s pay stub. When paying vacation pay on each cheque, it must include all wages including overtime, commissions, etc. and the vacation pay earned during the pay period are used in the calculation.

To help calculate the amount of vacation pay owed to an employee, please see the online Vacation Pay Calculator

Source: www.saskatchewan.ca

 

Want to know more? Click here for the link. 

 

Trusted Saskatoon Bookkeeping Experts share a great tip on the WCB Employer's Payroll Statement and what it means to your business

 

Here they share a tip on the WCB Employer's Payroll Statement and what it means to your business:

Did you know as an employer you are responsible for the accurate reporting of your past years payroll amounts and the estimation of this years amounts to WCB?


It is very important to report your payroll amounts to Saskatchewan Workers' Compensation Board on time each year.
For ease the WCB sends out the Employer's Payroll Statement with detailed instructions each year.

It is important your payroll reporting is done accurately as this makes up part of your premiums for the year. You are only to declare for work completed in Saskatchewan.

Another important part to this reporting is declaring the contractors that you used and did not contact WCB to get a clearance letter for before you paid them.

This portion applies to all businesses in any industry who have hired a person or business to perform work or services on a contract basis.
If you paid a subcontractor for a service and did not call WCB to get a clearance letter first you may have a levy applied to your account.

How do I ensure my business does not pay more?

Make it a practice to always contact WCB for a clearance letter or a letter of good standing before you pay a contractor.

Ensure your Employer's Payroll Statement is filed on time.

Make sure your payments to WCB are made on time.

 

 


All of these items will help you ensure you stay in good standing with Saskatchewan Workers' Compensation Board.

The Employer's Payroll Statement Return Deadline is February 28, 2014! Need help with yours? 

Trusted Saskatoon Bookkeeping Experts answers your Facebook Fanpage Questions

 

TrustedSaskatoon.com Talk to the Experts – Legal and Professiona

Q: Brenda Compton : If you have 2 smaller businesses under one roof can you write off double the amounts? eg: office space, utilities, vehicles? etc. 

A: No.  If you are writing off office space you are only permitted one office space per company.  For more specific clarification we recommend you speak with your accountant.

Q: M Liz Beisel: When CRA does an audit, how many years of receipts/data do you need to have? That year or more? 

A: When the Canada Revenue Agency does an audit it is typically for a specific time period.  But you should always keep 7 years.  Even after seven years, it is recommended that you keep all audited financial statements, GST, PST, payroll and any government forms that have been received.  Scanned copies have not been approved by CRA yet so be sure to keep originals of everything.  If your documents have been destroyed by fire, flood etc. you may be required to submit a Loss of Property Declaration to CRA.

Q: Ann Lyte-Maille: What receipts must be kept and for how long? 

A: Keep receipts, tax notices, government forms, invoices etc. for a minimum of seven years.  Even after seven years, it is recommended that you keep all audited financial statements, GST, PST, payroll and any government forms that have been received.

Q: Darryl Spokes: If I am just starting a new business and can’t afford a bookkeeper yet, what would you recommend are the best practices I can set up on my own before I get a bookkeeper

A: Stay organized!  Sorting takes the most time for our new clients.  We tell all our smaller or new companies they will save a lot of money by doing these easy steps.

1. Keep corporate documents like partnership or shareholder agreements in a safe and secure place. 

2. Keep all documentation for asset purchases like vehicles, office furniture, electronics etc. in a separate folder.  You will need these at the end of the year.

3. Write on your receipt what the item was for.  If you went for lunch with a potential client, write “Lunch with potential client” on the receipt.

4. Write on your invoices, “Paid with Cheque No. XX on XXXXX, 2013.” Or Staple the cheque stub to your copy of the paid invoice.

5. Match all the receipts and invoices that you wrote cheques for that are on the bank statement and put them in a folder marked “December 2013 on the Bank Statement”.

6. Take your receipts that you have paid with your own money and put them in an envelope marked “December 2013 Paid with Own Money”.

7. Staple your deposit slip to the invoices that have been paid with that deposit.

8. Put the deposits that are on the bank statement in your monthly folder.

9. Put all your monthly information in a folder or bin and keep it all together.  Lost receipts mean lost tax benefits.  You want to keep all your money in your pocket not the governments. 

Q: Deenna Dekker: Do you charge annually, hourly or is there a monthly set fee?

A: We typically charge by the ½ hour.  We work on an hourly basis and we have descriptive invoices that show you exactly what we have done.  We do work on a monthly basis with some of our clients but we would have to do their bookkeeping for a year before we decide on a monthly contract rate.  

  

Trusted Saskatoon Legal and Professional Services Talk to the Experts Show

Trusted Saskatoon.com THE Saskatoon Directory   is proud to be hosting a Talk to the Experts show " The Trusted Show' Monthly on Newstalk 650 ..the first show aired June 9th 2012.  Find them all here in our tips library or on our Trusted Channel on You Tube which is a fabulous resource of Tips, Interviews, Demos and Tours.

What this means is you can listen to all the shows ON DEMAND, you can share them with friends who may be interested in the shows subjects and this makes sure you never have to miss a Trusted Show - we think out of the Box when it comes to marketing, so we can provide the BEST Possible service for YOU the public- we are the Only Local Directory that works for you...and the only  place to offer this kind of service in Saskatoon!  

This latest show we are featuring is the TRUSTED SASKATOON Directory Legal and Professional Show

All of the questions on the show are submitted by our wonderful Trusted Saskatoon Facebook Fans  and one lucky fans question was chosen by Brent to win the Prize package submitted by the 3 Trusted Businesses worth up to $500!

 


 

 

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