What is an Income Statement?
September 14, 2021
An Income Statement is the same as a Profit and Loss (P&L) Statement. These financial reports compare a company’s total revenue and total expenses, the difference between the two being either the company’s Net Profit or their Net Loss for the period. Since the Income Statement only compares the revenue and expenses of a company...
Tips to Getting Paid Faster
September 7, 2021
It can be frustrating when you have completed work and you have to wait for your client or customer to pay. It is even worse when they don’t pay and you must take legal action, so I have put together some tips to help avoid this: Have a solid contract in place Make sure you...
General Ledger vs. General Journal
August 31, 2021
A General Ledger and a General Journal sound very similar and can be easy to mix up if you are new to bookkeeping. Both are crucial for keeping your books balanced and maintaining records of your financial transactions, so it is important to be knowledgeable on what they are, what they do, and when to...
Tips for Handling Audits
August 24, 2021
It is inevitable that at some point in time your business will receive some type of audit from the CRA. This is because we live by a self-assessing tax regime which means the government entrusts us to honestly report our income and our deductions. The audits are a way of them checking that what we...
What is a Trial Balance?
August 17, 2021
A Trial Balance is a financial report which lists all the Accounts from the General Ledger at a certain point in time. Trial Balances have four columns which include the Account Number, Account Name, Debit amounts, and Credit amounts. The last row of the Trial Balance highlights the total Debits and total Credits and is...
August 10, 2021
If you are making enough profit in your business, a great way to give back is by donating to a charity. To encourage charitable giving, the government provides a corporation with a tax deduction when the corporation makes a donation to a registered charity. If you want to donate on a personal level, you can...
Transitioning to Cloud-Based Accounting
August 3, 2021
Why transition? Cloud-Based Accounting is easy to use and allows for seamless collaboration between members of your financial team. Transitioning to the cloud allows your team to use automations within cloud accounting software to eliminate tedious tasks and allows your team to access their work from anywhere in the world. Check out our blog post...
What is Depreciation?
July 27, 2021
You may have heard of depreciation in your personal life, particularly when discussing vehicles and how they depreciate (lose value) so quickly. In business, depreciation is what happens when a business asset loses value over time, since you are not allowed to expense the whole cost of an asset in one year, you must instead...
What are Contra Accounts?
July 20, 2021
A contra account is an account that has a balance opposite to what the normal balance is for its category within the Chart of Accounts. What does this mean? Within the Chart of Accounts there are five categories: Assets, Liabilities, Equity/Capital, Revenue, and Expenses. Each of these categories have what is called a “normal balance”...
When to Hand Over your Books to a Professional
July 13, 2021
When to hire an accountant: As you start your business you may feel the need to get advice from an accountant for things like business structure, which can affect the way you do taxes for your business, but it is also a good idea to consider bringing an accountant on as a part of your...
What is a Chart of Accounts?
June 29, 2021
A Chart of Accounts is a list of all the business’ financial accounts as found in the General Ledger. The Chart of Accounts features both the account number and the account name and provides an overview of all areas of your business. These accounts are broken down into 5 separate categories: assets, liabilities, equity, revenue,...
Bookkeepers vs Accountants
June 22, 2021
A lot of people think bookkeepers and accountants complete the same tasks, however that is not the case. A bookkeeper records your day-to-day transactions including sales, expenses and payroll. They make sure all your data is entered so that they can produce accurate financial reports for your business usually on a monthly basis. They will...
Benefits To Outsourcing Your Bookkeeping
June 15, 2021
In this article we talk about the several benefits of outsourcing your bookkeeping.
How to Reduce the Chance of an Audit from the CRA
June 8, 2021
In this article we discuss the top 3 ways to reduce the chance of an audit from the CRA, at the end of the article we also feature an app that makes this process a breeze!
What is a Bank Reconciliation?
June 1, 2021
In this article we talk about bank reconciliations, what they are and why they are important. We also include some tips for when performing bank reconciliations.
Accrual Basis vs Cash Basis Accounting
May 25, 2021
In this article we discuss the difference between cash and accrual basis accounting, the advantages and disadvantages of both, and which option we recommend.
5 Reasons to use Cloud Accounting Systems
May 25, 2021
In this article we discuss five reasons to consider using cloud accounting systems.