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Accounting for individuals in Toronto
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Accounting for individuals — Personal accountant in Toronto

Getting your finances organized can be quite a cumbersome process when you have a lot of things on the go. Are you working, are self-employed, own a business, have investments, debt, retirement plans and are also trying to keep track of things like a budget, savings, properties, etc. If you’ve experienced major personal change that will directly affect your finances in any way that is related to the adoption of a kid, the purchase of property or the receipt of a large sum of money, it may be well worth it to hire an accountant.

Do I need a personal accountant?

In Canada. there is no law that requires individuals to have a personal accountant. Online tools and software are available to self-file tax returns and everyone has a different way of managing their money. While this can work for many, hiring a personal accountant to handle your finances and taxes help prevent mistakes that would be costly both fiscally and in your long term financial plans.

Sometimes credit card and bank accounts statements are incorrect which can mean that a correction will be made before it is deemed too late. You may opt to not repay a bill because that would hurt the credit rating. You may even overlook expenditures able to generate a tax deduction for your business. It’s important to keep track of your personal wealth especially when it is tax season.

 

Tax return - FinanTech

Personal Income tax returns

FinanTech is here to assist you with maximizing your payouts – simple. Filing taxes is considered to be one of the most stressful times of the year for individuals and families. The true difference between filing online by yourself for your personal taxes and consulting with a tax professional is the flexibility of how your taxes are structured.

A personal accountant will have insight on things like using your RRSP or tax free savings account to your advantage while finding credits or deductions that you can claim to maximize your tax return. For example, if you are a first time homebuyer or invested in green-driven products, you may be entitled to a tax deduction or personal credit on your next tax filing.

Personal Tax planning

Income taxes are much more than filing paperwork for a refund of taxes. We may be your favored tax strategy for a number of reasons. We can also help you prepare for life changes, such as buying a home, starting a family, continuing education or leaving the workplace to begin a business.

Filing personal tax returns

It is incredibly important to file your taxes on time to avoid any penalties. This is why we provide services like tax preparation and timely filing to make sure you not paying anything you don’t need to. When you use a personal tax accountant to file your returns, you reduce your chances of being audited by the CRA as any red flags will be assessed and evaluated in advance.

Get the personal tax return you’re entitled to.

A personal income tax return is the final product – a report card – describing your income for the year. You have also the right to get many tax refunds. The Canada Revenue Agency will not tell you when you missed them and you should request credits for them. Accountants will take into account expenses, payments and other elements that can benefit your tax return.

Aside from personal income tax and tax filing, if you do not have an accountant to this point it’s a good idea to hire one to minimize the risk of being audited. A professional can assist in the planning of your audit procedure. It’s better to contact the accountant before an audit even happens, especially if one offers audit insurance. All audit insurance pays for legal and accounting expenses when a business has to respond to an official inquiry, probe or audit by a taxpayer.

Accounting and CRA Audit Assistance

Canadian tax experts can help you organize your books and make sure you understand your rights and responsibilities if the government calls.

 

FinanTech – Personal tax accountants in Toronto

FinanTech helps thousands of Canadians with their personal income tax returns every year. FinanTech Chartered Accountants in Toronto can recommend deductions you might include in your return which will in turn signify more money in your pocket.

Get started by chatting with FinanTech professional accountants today!

 

Personal Income tax for the Self-employed and business owners

Being in this situation can be tricky as you may be filing personal tax and business tax together or completely apart. We assist businesses and sole proprietor businesses in tax planning by structuring your situation for the best possible outcome.

We ensure you understand your tax rights with all regulatory compliance requirements. Our team can provide trusted counsel on a variety of issues including business growth, incorporation and HST. Let us worry about your business books and concentrate on growing your business and achieving your financial goals.

GST/HST

Registering for GST/HST may be in order as your grow your business. You will need tot know the terms and conditions to collect GST and/or HST. We will answer all your questions, train you for proper tax collection, teach you ways to track tax collections and payments and we’ll file it for you on time.

 

Get an accountant’s advice before you take on a franchise or buy / sell a business

Individuals who are interested in purchasing a franchise should most definitely consult with a professional. With a business franchise you can now remain your own boss without compensation for earning any revenue or equity from it. The franchise provider will help you with brand marketing, sales, product availability and other important things.

There are disadvantages to owning a franchise company and therefore having limited freedom of business. It can be difficult for a newcomer to the franchise world to decide whether the franchise fits the right requirements. An accountant can scan the franchise contract and find out the fees and percentage charges. This will help determine your expected income after deduction of the costs. Only you have the right to decide if you are ready for a Franchise.

If you buy some other brand you must always consult a reputable accounting firm first. They could check the companies accounts and see what happens to it to find any problems there may be. It’s a good idea to consult your attorney to find out all the details about the company you intend to buy. This gives you peace of mind that you get what you pay for. It is important to check if the enterprise has debts. For example, the authorities can check if a company has all but the assets which is leased or partially paid for.

By utilizing a professional accounting software we create useful charts and table data for your company. The prospective buyer could contact any of the buyer’s financial consultants or other specialists in the course of this work to discuss the transaction or to ask specific questions.

A professional accountant may work with you to plan how to make the most money from the sale of a business. Depending on the way sales are structured, their proceeds can vary significantly. In practice the lump sums may be less tax-efficient than the monthly repayments over a period of years, and provide better returns.

You’ll need an accountant to help you with the small business finances.

Small business accounting can get quite complicated if you do it on your own. If you feel your debts or debt have become unrecoverable your we can help you make some changes to your life. You may also want to look at key business metrics, like the ratio between wages and other paid-for employees to total revenues.

The accountant you use will be able to share your personal business records for quick access. We can even produce diagrams that can allow you to view your current situation easily. It will help monitor a company’s pulse and make sure of important things like cash flows.

When it comes down to a small business dealing with the government, we’re here to aid in the preparation of many things. It can help your company get into conversations with the government in other ways. We can offer ideas that could help you save money.

Preparing your Tax Documents Correctly can save you more money than your accountant would charge. A good accountant will use their knowledge of the tax laws to recommend ways to free up money and save it for a potential business expansion.

 

You’ll need advice about the legal structure of your company.

Not all business have the same legal structure – there are various types based on different reasons. For instance you can make business as a company sole owner or a sole trading company, working in a self employed way and invoice using your own name.

If this is the case you will probably offset other expenses for life that are not taxable. Alternatively you can assume responsibility for your business operations as well. The structure for limited liability companies was different from other industries. As the name indicates the liability in that business is limited to the assets owned by the company, not by you personally. Read more about the benefits of incorporating in Ontario here. An accountant is able explain the different entities available for company formation and helps you get the one which suits you most closely.

When you engage an accountant in your business plan, they can automatically add financial projections and other reports to it. This will help you create a plan which is both realistic, professional and most likely to succeed. Hiring a professional at this point will be your best option right from the beginning. This could save you money as opposed to hiring a professional later.

Also, if you want any lender or investor to give you any money, you should show them the proper form of accounts. The further the backlogs of your records go, the more confidence they will have. It might be beneficial if you started with accountants as early as possible.

 

Finantech Chartered accountants

FinanTech Chartered Accountants in Toronto

Whether you are looking for a professional opinion or to get started with your personal and/or business accounting, our team is here to maximize your finances and help you pay less.

Contact us

Benefits of incorporating in Ontario
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Benefits of incorporating in Ontario

Ever wondered how many many small-and-medium-sized businesses that operate in Canada? The answer, 1.14 million small businesses and 21,415 medium-sized businesses that were included in the Statistics Canada’s Business Register as of December 2015. Among these businesses we can count sole proprietorships, partnerships and corporations. You may opt to incorporate your company at certain times from a variety of factors. As with many businesses, incorporation has advantages and disadvantages. Below, we cover the benefits of incorporating in Ontario and explore other elements to consider.

 

What is a corporation?

By definition, a corporation is a legal entity that is distinctly separate from its owner(s). A small business operating as a sole proprietorship company or a partnership can become incorporated. A corporation can also be established at the creation stage of your business. A corporation in Canada must follow certain guidelines for tax payments, filing GST/HST returns and the assessment of responsibility for the corporation’s debts.

Incorporation

 

The primary advantages of incorporation

Personal Liability

The primary benefit of incorporating is the limited liability of the incorporated company. As the business owner, you will be treated as a separate entity from the business. Corporations have the same rights as individuals; that is they can own property, conduct business activity and enter into contracts, they can also raise capital and sue. Corporate governance consists in protecting the business owner of the corporate debt and obligations – inside certain limits. The corporation is considered an artificially created legal entity, separate than the individuals who created it and conducts its own operations.

Protect your personal assets

You are protected when you incorporate the business for the purposes of reducing business debt through establishing C or S corporations or limited liability companies (LLC). If your business goes through tough times, your personal property typically cannot be held for collection agencies. Similarly your home won’t become worthless since you missed paying your business loan.

If you file a business bankruptcy then your company could become something you can easily liquidate to repay your debt. These might include your home, cars investments or even any property that they acquire later on. Incorporation protects your company against all these scenarios and protects your assets along with withholding you from being personally liable.

As a corporation that can control its own assets, do business, incur liabilities and seek damages. A corporation has its own financial resources when it pays its own debts. Creditors generally can pursue payment only on the business’s asset. Sole proprietorships and partners can be held liable for personal assets and business assets in unlimited circumstances. Business owners have an option of selling their business for ten per cent cheaper than a conventional business.

Protect your personal assets from lawsuits

Without incorporation, your valuable assets could fall victim to another business suit against you. Some of them can collect based on judgments by taking control of possessions such as homes. Incorporation creates a firm barrier between your personal and household property and legal claims against a business. In case your business goes to litigation, your valuables will never be in any risk. If you take legal action against a customer for damage you can be personally liable.

Limits of limited liability

While being incorporated creates a solid separation between the owner and the business itself, there are certain limits that apply, it is always best to consult an accountant to see how limited liability affects your particular scenario and what would be covered for you. This is another reason why small businesses should consult a professional account.

Taxes and personal income

Incorporation to reduce taxes

Incorporation to reduce taxes

Small business owners tend to incorporate because it provides them tax benefits which cannot be afforded for unincorporated entities. The benefits can help a small business owner save money every year. These taxes benefits include income tax splitting, benefits from reduced corporate tax rates, income tax deferral and capital gains exemptions. Additionally, multiple options are available to claim personal income at a time where it would have the least impact on your taxable income.

Corporate and personal taxes are separated

Incorporations separate your personal tax and business income. Your tax advisors will study what your corporate tax rate might be when you incorporate and compare that rate to your own effective tax rate. If it is lower, incorporation may be beneficial, it may be more beneficial to the individual as the corporation’s income and tax returns are not merged with their own, providing a tax advantage in some scenarios. The business receives income and the Canada Revenue Agency will treat the tax bill separately than that of unincorporated businesses.

Lower corporate tax rates – Less tax

Having a business in place allows for lower rates for taxation compared to taxes charged for an individual. Federal tax rates for corporate incorporated businesses range from 15% to as low as 9%. Small business owners have an advantage of the small business deduction. This reduces corporate income tax that you need to pay in a tax year. The reduced rate is available to those who earn business activity if the business cap is maintained for this year. Currently the federal business limitation is $5,000. The small business tax rate currently stands at 15% for incorporated businesses and is lower than the personal tax rate of an individual who operates in a sole-proprietorship and partnerships.

Tax savings and deferral

Incorporated business owners are faced with a multitude of tax issues and factors which can be included and considered as such in determining the tax advantages of incorporating. With a corporate entity you can make a business more flexible and earn more. It could reduce tax. Deferred tax dollars are effective in helping you grow your corporation. You also gain the capacity to plan personal income to benefit from lower tax rates.

Income splitting

A company incorporation will also give your child and their spouse interest in receiving money. These tactics offer great flexibility for an incorporated company given that the distribution amounts payable can vary from year to year. The money is allocated to lower taxable incomes. There is an additional income splitting strategy available to Canadian taxpayers but you should consult a tax professional to be sure this strategy is correct for your situation. In addition you can divide the dividends evenly between relatives to avoid your tax burden.

Think about your business in the long term

incorporating long term benefits

incorporating long term benefits

Although it is not necessary for all businesses to incorporate, most businesses will benefit from entering into the incorporated act. Your business structure will largely benefit from this as you look to expand or bring more people on board. Other factors to consider for the long term are:

Stronger record keeping

As corporations are treated separately from the owner(s), strong record keeping is in order to make sure that there is a clear distinction between what relates to the business and the owner. Corporations will have their own bank accounts, credit cards and expense accounts. As a sole proprietor or an individual in a partnership, you may be operating from your personal accounts or cards, bills may be in your name and such. Incorporating makes it so that your business can have its own set of bills and expenses that are tied only to the business. This type of legal structure makes it easier to keep track of anything that would get the attention of the Canada revenue agency. The business name will appear on every statement, record, tax returns, bank account and other paperwork involved.

Improved access to capital and grants

Attracting the eye of investors, angel investors and startups is much easier when your business is incorporated. Several credit-based programs are provided by the Canada’s government only to corporations. This can help boost the credibility of your company, which helps you find financing or negotiate with a supplier. This may also make it much easier to raise money and obtain grants. The idea adds credibility and gives you easier access to funds.

Lifetime Capital Gains Exemption (LCGE)

Lifelong capital gains exemption (LCGE) might save you money on tax for all or part of a sale. In a business, the cap for annual profit is $8893,824 for the 2019 year and will be $891,818 for the 2021 tax year. Farmers can claim a maximum exemption to $1 million and you can still use the exemption until the limitation is reached.

The LCGE is not a one-time exemption but it is cumulatively limited throughout the lifetime. There are often businesses incorporating just for the tax advantages. You could be able to use LCGE to avoid paying tax on half of your profit.

Your shares may qualify for a capital gains tax deduction when sold

If your shares are deemed Qualified Small Business Corporation shares and meet certain other requirements, you may be ineligible for an 880,000 life income tax exemption if you sell them. This means avoiding any additional tax liability after your retirement is completed.

Flexibility & Global recognition

Your official business address can be anywhere in Canada and meetings are held online and anywhere on the globe. Federal companies can be recognized worldwide. Incorporating your business can give it more notoriety compared to other business structures.

Estate and succession planning

In the event that the owner passes away or can no longer continue to operate, shareholding could then be transferred from the shareholder to his heirs. This stability gives you a better possibility of planning on a long term basis. It’s more flexible for transferring assets.

Corporations with all its relationships and contracts could survive the change in owners based upon the planning process. Having corporate shares transferred gives an advantage in time for succession. While incorporation is beneficial, it’s crucial to speak with your advisory team before proceeding, especially in tax free situations such as selling ownership rights to a person with no intention.

 

Other things to consider when incorporating your business

Costs related to incorporation

There may be higher administrative costs because of setup fees, more paperwork or the need to seek the assistance of specialists handling more complex tax filing requirements. Assessing your business and personal goals against the costs – both financially and through money – can help you to decide whether this structure will suit your need.

There’s annually legal filing fees payable and fees required to have an accountant filing an annual company tax return. The company requires one or more filings to retain good stead with government authorities. Losses that are difficult in a corporation but in a proprietorship are used only for short-term benefits of a reduction and tax credit.

Expecting losses

If the company expects its own losses at the start, it can also be helpful for a sole proprietor or the company to delay or not register as an entity. If it was lost by a sole proprietorship this individual may claim the loss against his other financial income and reduce personal tax burdens. The business could also be incorporated once it saw profits. If the business was incorporated, the loss could only be assessed against future corporate income. Incorporating limited liability may not outweigh the effects on income taxes and it is possible that a tax deferral would not benefit your particular case.

Real Estate Rental Businesses

In many cases operating an estate rental business as a corporation offers no tax advantages. Until the business becomes larger, the rent earnable by the organization is categorized as income from investment. Investment income is treated more heavily than business income because small business exemption doesnt apply. It is sometimes easier to obtain a mortgage personally than a corporation and If you live in the property prior to or after renting it you could use the Principal Residency Exemption to reduce certain capital gain tax upon the sale of the property.

Pay more taxes

Sometimes you could even have to pay more tax for operating a corporation. It usually happens when the small company business deduction aren’t available to corporations. In other cases individuals with the right to personal tax credits can be eligible for a lower rate for their personal business ownership. It is less common for a corporation to pay higher taxes overall but the situation can exist.

Administrative burden of incorporating your business

Each business is a separate entity and means that they must be updated regularly. If you want to cut down the company, there’s an additional checklist you must go through to do the job properly. If you are allergic to filings, you may want to avoid the extra overhead of a corporation. You should also ensure that the business operates and remains in a proper standing with the authorities before letting it down.

Conclusion

While business incorporation offers many advantages, many small business owners jump into the process too quickly without seeking advice from a professional accountant. There are instances where incorporating your business could still leave you with all the liability, business debts and financial losses much like that of a sole proprietorship. Having a discussion with a FinanTech accountant will help you understand if this is the right time for incorporating your business and help you through the entire process.

Finantech Chartered accountants

Accountants for small business in Toronto
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Accountants for small business in Toronto — Why you should consider getting one

Starting and running a small business in Toronto can be both an exciting and stressful journey. On one hand, your business has access to close to 3 million local residents and a whopping 215,000 other businesses. On the other however, no matter if your business is B2C or B2B, owning a small business does come with a certain degree of financial responsibility that may be hard to keep up with especially as you focus on growing and doing what your business does best. To help you, we’ve put together a list of topics to discuss why Toronto small business owners should consider professional accounting services for their small business.

Does every small business need an accountant?

If you are planning to manage your finances and payroll by yourself, you will open your business to high risks that could put you in a bad financial position. An experienced financial accountant can manage all your small business accounting responsibilities to help you achieve a healthy financial standing and steer clear of tax and accounting blunders. In 2020 and for the better part of 2021, Toronto business owners were handling COVID-19 relief funds, hiring wage subsidies and many more elements for which proper records need to be kept and other implications/business decisions for which the guidance of a chartered professional would be ideal.

A small business tax accountant for tax planning

Small business tax specialists can help you save money with small business tax strategies. Your business taxes are tax planning tools that help you keep cash more efficiently. Everyone knows that planning for tax season can be a nightmare, especially if you have to navigate between your personal taxes, that of your family members and your small business accounting needs. A small business tax accountant will ensure that everything is in order when tax season rolls around. You will benefit from both effective tax planning and financial planning as well as first class accounting support through the entire process for both personal income tax returns and your small business taxes.

GST/HST

Almost all firms are required to file GST/HST return requests and make payments to the Government of Canada. We will set you up to collect tax correctly and file your tax return for you on time. If your business is going through a transitional period, such is the case with going from a sole proprietorship or partnership to incorporated businesses, an accounting firm ensures that everything is filed in a timely manner. You also benefit from proper financial reporting, which is likely to keep you away from audits.

Incorporating your small business

The pros and cons of incorporating your small business in Ontario can be explored with the help of a professional accountant. In some cases, you can drastically reduce your taxes by incorporating your small business.

Small business accounting to maximize your deductions

One thing that is often forgotten business owners is the effect of your tax deductions. Relying on self-use tax services is a sure way to miss big expenses or amounts that you can claim to minimize what you owe on your taxes or your HST/GST.

Small business accountant to reduce taxes

A small business accountant can help you reduce your taxes

Other reasons to consider small business accounting services

Small business tax credits

You may be eligible for small business tax credits in Ontario which can be a great way to help you keep more money in your business. A chartered professional can help you find and apply these credits.

Financial statements and records keeping for small businesses

Always keeping a complete inventory of all relevant documents including the financial statements and balance sheet is something that you will get with professional accounting firms and bookkeeping services . As a small business owner, you know how hard it can be to keep organized records, that’s why relying on accounting services will put your mind at ease when it comes to important financial statements.

Small business Tax professionals help you follow the rules

Tax rules change regularly. You can stay in line with tax law and avoid financial missteps by consulting a small business accountant who will inform you of changes and guide you through key business decisions and tax strategies.

Bookkeeping to assist your small business day-to-day

Maintaining important financial statements, tax returns, payroll deductions and expenses is best left in the hands of professionals. This will always ensure proper accounting and better business practices.

Selling your small business

Whether you have plans to sell your business or liquidate it, professional accounting services are essential to help business owners get more money from the transaction.

Financial peace of mind - Finantech

The verdict: Financial peace of mind for small businesses

Between the multiple advantages that offer tax professionals in regards to tax law, tax planning and tax services in general to the benefits of counting on your bookkeeping services for maintaining proper financial statements, hiring an accounting firm is a great way to ensure peace of mind. As a result, small businesses can continue to focus on their day-to-day activities and not have to worry about filing yet another tax return! The costs of small business accounting services far outweighed by the ability to help small business owners keep more money flowing through their business.

FinanTech: Small business accounting services in Toronto

FinanTech’s small business accountants in Toronto are here to help you plan and make better financial decisions to succeed in the GTA and online. Our excellent accounting firm will ensure that a chartered professional is there to offer proper accounting practices to your small business. We help companies grow in revenue and manage their expenses with detailed bookkeeping services and archives of your financial statements as well as any other accounting needs.

FinanTech are tax professionals in Toronto

Small business taxes often make a confusing system to navigate causing penalties and fees for a small business. A FinanTech small business accountant will be there to ensure that everything is done in timely manner. Our tax professionals will walk you through the ins and outs of the filing process, allowing you to maximize your deductions and tax returns. There are also many tax credits that small businesses can receive and a professional small business accountant with the right technical competence can help businesses respond to these opportunities. A low tax bill is also an excellent way to keep cash flowing in.

Customer Service Guarantee

Small businesses that work with our accounting firm only get the highest level of Chartered Accounting Services in Toronto. We guarantee an incredible customer experience and that we do an excellent job with all levels of service. We expect even more for ourselves and guarantee our clientele is satisfied for the level of service we provide. We are proud to have this advantage and to see the difference it makes every day for a small business owner. Get started with Finantech now

Get your small business accounting onboard with us

Have a chat with with a FinanTech professional to see how our services can help your Toronto small business accounting needs.