Small Business Bookkeeping Services Toronto
The time has come to fulfill your dream of working for yourself finally! As an Independent Contractor or Consultant, you need to get started correctly. At Toronto Tax Experts, our team for small business bookkeeping services in Toronto take care of the numbers, to allow you to focus on your business.
What are Independent Contractors and Consultants?
An independent contractor is an individual in business for themselves, providing goods or services to another individual or company. Independent contractors and consultants can work in a variety of roles, such as consultants, agents, or brokers. Others might be creative professionals or technical IT types.
However, too often, independent contractors and consultants do not plan for the future with proper income statements and cash flow projections. To prevent unforeseen audits, it is vital to put together a bookkeeping system that will last into the future as these efforts will bring exponential benefits to your business. Not only will you understand the financial health of your company, but you will also be preparing for the future.
Advantages of Working as an Independent Contractor or Consultant
Working as an independent contractor is a very satisfying and rewarding experience, with a wide variety of benefits. Not only are you, your boss, and shape your business based on your values and goals. You’ll be managing your own business, from finding the clients, to doing the work, to producing an invoice for payment.
As a contractor, you can have a very flexible work arrangement, working the hours you want and need.
Much Higher Income
Being a contractor means you get paid for every hour of work you do at the market rate. If your skills are in demand, your income could be high.
Using Business Expenses as a Tax Shield
A tax shield is the deliberate use of taxable expenses to offset taxable income. Tax Shields can lower the effective tax rate of a business or individual, which is especially important when their reported income is quite high.
Become Your Boss
Contract work provides greater independence, it can give you more predictable control of your work. For many people, working as an independent contractor provides greater job security than traditional full-time employment.
You will get to learn new tools, meet new people, on new projects with different problems and solutions. This will build up your resume and make you a more desirable contractor for the next job.
Be a Gun for Hire, in Your Specific Niche
Bookkeeping Rules for Contractors or Independent Consultants
As Sole Business owner, you must abide by specific guidelines to make your business audit-proof. When you don’t have a system and processes in place, unpleasant surprises can pop-up, you may miss goals, and forget essential paperwork. Getting a better handle on your money and adopting good money habits early on can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and even improve your profits. When you work with professionals for small business bookkeeping services in Toronto, you’ll learn how to improve
Ensure Business and Personal Expenses are Separated
The money you use from your personal account is considered a shareholder loan and you can be paid back for it. Do not use your business account to pay for personal expenses.
Capture all Expenses
You can use Receipt Bank, which we provide for free or Quickbooks to capture and import all receipts for an Audit Trail.
Understand How CRA Works
Understand the laws and restrictions that impact your business activities, and ensure that you stay in compliance with these rules. For example, your accountant will provide information about quarterly tax payments, tax break strategies, and more. You should tap into their expertise and make sure that you are keeping your nose clean with the CRA.
Use Cloud Accounting Software
We will integrate Receipt Bank software into Quickbooks, Xero, Zoho, Sage and many more to ensure your financial statements are backed up.
Keep a Separate Account for Taxes
We love to encourage clients to keep about 15-20% aside to cover HST, and Corporate Taxes owed to CRA at year-end. Money set aside will help soften the blow of taxes owed. This type of liability is what most businesses get behind with, and CRA will shut you down if you do not pay.
Try to Plan Your Business for Where you Want to be in the future
Having organized bookkeeping and accounting will help tax plan and understand your monthly operating costs. Once you can establish your values, you can plan goals to attain the number of sales or clients to turn a profit and pay all of your expenses, including CRA!
Work with CPA’s that will Help You No Matter What
Luckily we will offer unlimited support and can help with most questions you have. Lease or buy my car? How do I make payroll? What is a dividend?
Get Started with Professional Small Business Bookkeeping Services in Toronto
At Toronto Tax Experts, we take pride in clearly explaining and navigating the often foggy landscape of bookkeeping and accounting and its relationship to business owners of all types. We help our clients choose and maintain systems relating to their cash, receivables, inventory, payables, sales, expenses, and any other accounts as required.
Our mission is to help your business succeed through insightful financial analysis and sound accounting methods. Our team specializing in small business bookkeeping services Toronto goes beyond basic bookkeeping to provide financial modeling in easy-to-understand dashboards, proactive tax planning and preparation, and business consulting. We are here for you, whether you need to raise capital or help to manage your cash flow.
Our Small Business Accounting Process
We’ll discuss your small business bookkeeping needs to determine which package works for you. Once we have determined your needs, we will create an engagement letter for your review and sign off.
Now we get started on the bookkeeping. At Toronto Tax Experts, our small business bookkeeping services in Toronto work on monthly contracts, allowing you to cancel at any time. We’ll send you an email with important information and what files to send us to set up the software and CRA representation.
Set a call with one of our CPA’s and review all remaining questions or concerns.
We will set up Receipt Bank and Cloud Accounting software of your choice and send you login credentials.
Next, the team at TTE will ask you for your bank and credit card statements each month. Please send them, and your books will be updated by the next month.
The accounting software will update your bank account via the secure connection every day, ensuring we can reconcile your accounts.
Now month-end is completed, your expert bookkeeper will accurately reconcile your bank and credit card accounts against general ledger balances. After we will send you an email with a few uncategorized transaction queries.
Respond with the missing details and you are done!