Frequently Asked
Accounting Questions
Is it complicated to change accountants?
We adhere to highest ethical standards when dealing with other practitioners. We generally co-operate by supplying requested client documents to a new accountant taking over to ensure there is no interruption in quality service for the client. As a minimum, we always send a courtesy take over letter to advise of the changeover.
Should I incorporate?
When starting a business, most people start as sole proprietors. You can register your business online and obtain a business number, open a bank account and get a licence.
If you expect to incur debt as part of your operations or if you industry frequently gets sued, you should consider incorporation.
If you are not withdrawing all your earnings every year, there are tax savings available for the cash that stays in the business. Consult with us before taking this step to consider the costs and benefits.
The easiest way to incorporate is to see a lawyer who can make sure you set up the best share structure for your purpose.
What happens if I do not file my tax return on time?
If you fail to file your tax return and/or fail to pay your income taxes to the Canada Revenue Agency on time, significant penalties and interest can be added to your tax balance owing. Moreover, the CRA has significant powers under the Income Tax Act (ITA) to collect outstanding tax debt, such as:
CRA can register a lien on your home (or any other real estate owned by you). Once this lien is registered, it effectively functions as a charge on the property and can only be removed once the tax debt is paid in full.
The CRA can issue a “Requirement to Pay” to a debtor’s bank or employer (the “Garnishee”), requiring it to remit proceeds to the CRA in order to satisfy the tax debt. If the Garnishee fails to comply, it is personally liable to the CRA for the amount that should have been remitted.
Why have I been re-assessed and what now?
If Canada Revenue Agency has re-assessed your tax filing, first, contact us to determine why you’ve been reassessed. You may conclude that certain deductions were not valid. On the other hand, you might decide that the reasons for CRA’s reassessment were unreasonable and that you want to appeal their decision further.
If you do decide to object to the reassessment, you must file a Notice of Objection with the Appeals Branch of the CRA. This can be in a form of a letter to the Chief of Appeals.
We have experience dealing with the tax department so call us and we will assist you in the process.
What software do you support for bookkeeping clients?
We use Quickbooks for all our internal bookkeeping, but we also support Sage Accounting client files.
Will you come to our place or business if required?
We are happy to provide you with on-site support, because we understand that it’s often the most efficient way to get the job done.
How much does it cost?
Obviously this depends on the amount of work and time that is required to complete the job. We will give you an upfront estimate once we have discussed your specific requirements. We are committed to provide great value for our fees. Do not hesitate to discuss our fees prior to an engagement.
Who will do the actual work?
All your work will be completed by accountants. We do not subcontract client work to students or ship it to 3rd world countries for cheap processing.
How soon can I expect a call back if I have a question or concern?
We pride ourselves to provide a quick and informative response if you have questions or concerns. Most questions can be addressed the same business day.