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lmn4881
Forum Addict
Joined: Jul 10, 2006
Posts: 521
Location: Alberta Canada
Birthday: Dec 27
Gallery Supporter Member
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 Posted:
Tue Jul 17, 2007 7:24 pm |
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I just got my licence and food permit in Alberta Canada here a few weeks ago and I am unsure as how to go about the accounting portion of my business. Tracking costs and expenses and how to pay myself. Does anyone do this themselves and if so could you offer some advice or do you alltake it to an accountant every month? |
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Serenatea
Frequent Member
Joined: Jun 14, 2006
Posts: 254
Location: Jacksonville Florida
Gallery Supporter Member
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Tue Jul 17, 2007 7:39 pm |
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I have an accountant. All that accounting stuff makes my eyes glaze over. So, I want someone who knows what they are doing and can keep me and the IRS happy!! Hope this helps.... |
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lmn4881
Forum Addict
Joined: Jul 10, 2006
Posts: 521
Location: Alberta Canada
Birthday: Dec 27
Gallery Supporter Member
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Tue Jul 17, 2007 7:40 pm |
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Does anyone do it themselves? I'm trying to keep costs down since I'm fairly new. |
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bitofsnshn
Junior Member
Joined: Nov 15, 2006
Posts: 84
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Tue Jul 17, 2007 7:53 pm |
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I would suggest you atleast seek an accountants opinion as you start your business. It's important to know tax implicaitons based on whether you are a corp or a sole proprietarship. Also you want to make sure you are taking full advantage of any deductions that you can.
In my experience just because you can do it yourself doesn't mean you want to. Those hours you spend could be better spent with family or increasing your business. |
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icing_fever
Regular Member
Joined: Jan 12, 2007
Posts: 120
Location: Canada
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Tue Jul 17, 2007 7:55 pm |
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Hi there,
I am a payroll accountant, and there are several ways of going about it. You can put yourself on a set salary or you can pay your self hourly. Also if you want to start taking off your taxes throughout the year you will have to contact CCRA to get a payroll number. But if you would like you can pay everything all at one at tax time, by just filling in the "OTHER INCOME" on your tax return.
I would reccomend talking to a local accountant, also if you would like take a course in payroll, the Canadian Payroll Association can give you more inforamtion.
Also look into getting a small accounting program. It would really work. I reccomendSimply Accounting or Quickbooks. Both are easy to master.
I hope I helped a little.
GOOD LUCK |
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SCS
Regular Member
Joined: Mar 26, 2007
Posts: 167
Location: Calgary
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Tue Jul 17, 2007 8:54 pm |
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I am in the process of considering getting a legal business from home, and have already mentioned it to my accountant. We both agreed it would be a good idea for me to meet her just before I go legal so that I would have a better idea of the accountacy system and things you can right off etc.
So even if you decide to do it all yourself, it may be an idea to speak to an accountant before hand to ensure you are fully informed. |
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JoAnnB
Forum SuperStar!
Joined: Jun 09, 2005
Posts: 7426
Location: Salem, Oregon
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Tue Jul 17, 2007 9:06 pm |
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It really isn't very hard to do it yourself.
Set up a spreadsheet with the categories for expenses, like small equipment, tools, publications, food goods, whatever.
then, keep and enter all your reciepts, keeping current will save you a real headache. Stamp each receipt as you enter it, and then just stick it in an envelope for the year. All your expenses will be recorded on the spread sheet.
Also, keep your income in a similar record, keep it current.
Your taxes in Canada will be different from ours in the US, but some larger item costs must be depreciated over certain number of years.
I don't know if TurboTax is available in Canada, but if it is, it will track all this stuff from year to year.
As for salary, it will be easier on yourself if you take a monthly payment, provided you make enough money. Makes wage taxes easier to track.
Some things are deductible, some are not. There should be tax help available for free from an organization that helps small business. Once the books are set up, it is just a matter of keeping good records. |
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Tscookies
Frequent Member
Joined: Jul 10, 2006
Posts: 273
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Tue Jul 17, 2007 9:11 pm |
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I use an Accountant for the tax preparation of my business-related statements only. I still do the personal tax statements (1040, schedule A, etc.). This way, I get a pro to do the business stuff, but am able to keep my costs down because I do the rest of the statements myself. |
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