Author: calgarybookkeeping

6 Jun

What is an Input Tax Credit?

If you’re a business owner in Alberta, then you’re collecting GST from your customers and remitting it to the Canada Revenue Agency (CRA). However, you’re also paying GST to your vendors on legitimate business expenses. The amount your remit to the CRA can be offset by the amount you pay to vendors. This offset is the input tax credit (ITC).

Without input tax credits, many products that we buy every day would be taxed over and over. Think, for example, of a sandwich you buy at our local Calgary corner store – the shop that sells it charges GST, as does the catering company that made the sandwich, the bakery that baked the bread, the cheesemaker who made the cheese, the dairy farm that produced the milk to make the cheese… and so on and so on.

What input tax credits mean for businesses is that while you may collect a large amount of GST, you only actually have to give the government the difference between what you collected and what you paid out. For this reason, solid bookkeeping is very important. This is why our bookkeepers work closely with our clients to keep meticulous records of both the GST that is collected and the GST that is pay out.

Your bookkeeping records have to be extremely clear and detailed because when you make an input tax credit claim to the CRA, you will be required to provide proof that these expenses were incurred legitimately and paid out as reported. The clearer this is, the easier time you’ll have working with CRA in the event you have to undertake a GST audit. While these audits are never any fun, they are also nothing to fear if your records are in good order and you have kept track of receipts.

Here’s a tip: when you receive a receipt from a supplier or service provider, make sure that the amount of GST is itemized on the receipt and that the vendor’s GST number is recorded on the receipt. You can save time and money by breaking out the GST and making a note of it on your stubs so your bookkeeper doesn’t have to rifle through receipts or back it out.

Nobody likes paying tax, so it’s really important to keep on top of those receipts and see your bookkeeper regularly to be sure that you are claiming as many input tax credits as you can and offsetting your GST remittance. Your bookkeeper can also help you to keep on top of your GST remittance schedule, whether it be monthly, quarterly or annual.

 

If you are thinking about using the services of a professional bookkeeper, give us a call  or email info@calgarybookkeeping.org  for a free consultation. We are currently offering a Spring Special startup package for $150 and monthly bookkeeping from $99. You may be surprised at how affordable professional bookkeeping can be.

6 Jun

Top 5 costs to Budget for when Starting up your Small Business

The adage that you need to spend money to make money is entirely accurate, especially for entrepreneurs that endeavor to start up a new small business. Depending on your risk profile, it’s possible to spend a few million dollars to establish a new company, particularly for certain industries like restaurants.

However, most new business owners need to prove their concept with the smallest amount of capital as a first step. So, what is the minimum amount an owner should budget for? Here’s a breakdown of the top 5 cost areas related to starting up a small business.

Business setup costs = $700

Once you’ve settled on your product or service concept, it’s time to legitimizing the business. This includes name searches, registering your corporation and getting licenses and permits. If you live in Calgary, then you can go to any Alberta Registry to take care of these requirements. We recommend Registries Plus.

Operating costs = $2800

This area can vary significantly depending on the type of business. Some need to lease a vehicle, while others need to lease a retail or kiosk space. In any case, all businesses require a location from which to operate. Most new businesses should budget for a 6 month proof-of-concept period. Based on our experience, it’s prudent to assume $250/month.

The other operating costs will be a computer, a phone and possibly insurance. For the same 6-month period, you can assume these costs to be approximately $1300.

Website costs = $120

There was a time when creating a website was a significant cost and undertaking for a new business. Much has changed in the last five years with the introduction of so many user-friendly website building tools. We recommend WordPress; which will give you a website template, a custom URL, web hosting and support for less than $11/month.

Marketing collateral costs = $500

At this point, you need to give your business an image. This will require a logo and some basic pieces of marketing collateral. At a minimum you’ll want business cards and brochures, but we also suggesting signage for your vehicle or your storefront. You’ll need to find someone to design your collateral and someone to print the material. The design work can cost about $350 and the printing is about $150.

A launch event or advertising costs = $3500

Now that your business is setup, it’s time to start acquiring customers. A small investment is necessary to generate awareness and demand for your business. This can be a radio campaign, a launch event or an online pay-per-click campaign. A standard radio campaign will cost approximately $3000, a launch event with radio support and signage is about $4000 and a standard pay-per-click web campaign is about $3500.

Certainly there are many business that find success with smaller startup costs, like tradespeople who often need little more than a network of friends and a cell phone. However, one of the biggest mistakes we see new business make is to short-change the startup capital. If you budget for $8000 to $10,000 and find success for less, then that’s great. But if you budget for a few thousand only to find customers aren’t knocking on your door, then you might find yourself in a position of not having the resources needed to succeed.

6 Jun

Calgary Bookkeeping

Our Calgary Bookkeepers are small business specialists. From setting up your corporation to year-end financial reporting, Calgary Bookkeeping is here to help your small business reach new heights

At Calgary Bookkeeping by Registries Plus, we have been working with small business owners to setup their companies since 1998. We offer a range of small business services. Our primary service is bookkeeping in Calgary, but we also offer startup packages, registration services, branding services and payroll services.

Bookkeeping

Whether your Calgary business has two employees or two hundred, our experienced bookkeepers will keep your finances in order so you can focus on what you do best – growing your business. Our bookkeeping services include:

  • Bank Account Reconciliations
  • Monthly, Quarterly and Annual Financial Reporting
  • GST Filing
  • Tax Filing
  • General Ledger Maintenance
  • Personalized Filing System for Record Keeping
  • Payroll Source Deduction Calculation and Remittances
  • Canada Revenue Agency Correspondence

Monthly packages start from $250. Set up a free consultation with our bookkeeping specialists to assess the needs of your business. We will build a custom quote just right for your growing business.

Calgary Payroll Services

As a Calgary business owner, you know that nothing is more important than making sure the people you count on to run your business get paid.

Tell us how much and when to pay your staff and we can take care of the rest! For everything from T4’s to ROE’s, we have the experience you need to make sure your payroll gets done right.

Everyone loves to get paid. At Registries, Plus, we love to make it happen. Talk to our Business Services Advisors for a personalized quote.

Our Calgary Bookkeepers are small business specialists. From setting up your corporation to year-end financial reporting, Calgary Bookkeeping is here to help your small business reach new heights

At Calgary Bookkeeping by Registries Plus, we have been working with small business owners to setup their companies since 1998. We offer a range of small business services. Our primary service is bookkeeping in Calgary, but we also offer startup packages, registration services, branding services and payroll services.

Whether your Calgary business has two employees or two hundred, our experienced bookkeepers will keep your finances in order so you can focus on what you do best – growing your business. Our bookkeeping services include:

  • Bank Account Reconciliations
  • Monthly, Quarterly and Annual Financial Reporting
  • GST Filing
  • Tax Filing
  • General Ledger Maintenance
  • Personalized Filing System for Record Keeping
  • Payroll Source Deduction Calculation and Remittances
  • Canada Revenue Agency Correspondence

Monthly packages start from $250. Set up a free consultation with our bookkeeping specialists to assess the needs of your business. We will build a custom quote just right for your growing business.

Calgary Payroll Services

As a Calgary business owner, you know that nothing is more important than making sure the people you count on to run your business get paid.

Tell us how much and when to pay your staff and we can take care of the rest! For everything from T4’s to ROE’s, we have the experience you need to make sure your payroll gets done right.

Everyone loves to get paid. At Registries, Plus, we love to make it happen. Talk to our Business Services Advisors for a personalized quote.

Calgary Business Startup Services

You are an expert at what you do, but most business owners aren’t experts at bookkeeping. It’s a necessary part of running a company, but it can get in the way of doing what you do best – serving your customers and growing your business.

For just $250, our seasoned bookkeepers will walk you through everything you need to know to get your new or existing business on track. Your Startup Package includes:

  • Consultation with an experienced Bookkeeper
  • CRA Registration (BIN, GST Account, Payroll Account)
  • Set Up Chart of Accounts
  • Orientation to Record Keeping (includes a personalized Filing Box for you to keep)

Not sure what kind of help you need? No problem! We offer free consultations!

Calgary Corporate Registry

At Bookkeeping by Registries Plus, we have been helping to set up companies and businesses in Calgary since 1998. We offer a range of corporate registration services to Calgary business owners including setting up trade names, incorporations and partnerships. We also provide minute books, NUANS reports and articles of incorporation.

 Trade Name (Sole Proprietorship) $50

A Trade Name, also known as a Sole Proprietorship, is the simplest business structure. It is the lowest cost choice for starting up a business and requires no annual maintenance. The main disadvantage is that the business is not transferable and you cannot secure the name you choose to operate with, although you can perform a NUANS Report to show that the name you choose was not in use at the time that you began operating with your chosen business name.

 Partnership $50

A Partnership is essentially a business structure identical to a Trade Name/Sole Proprietorship except that there are two or more individuals who have combined their resources to form a company with the intention to make a profit. Like a Trade Name, a Partnership cannot be sold or transferred. It’s a good idea to draft a comprehensive partnership agreement which outlines what will happen to the assets of the Partnership if one or more of the partners wishes to terminate the partnership.

 Incorporation $379

While incorporating a company is more expensive than establishing a Trade Name, our experienced Corporate Consultant makes it a simple process. There are many advantages to Incorporating: limited personal liability, eligibility for WCB, and possibility to secure a chosen business name. An incorporation is also a legal entity, the shares of which can be transferred and sold. If you wish to incorporate a named company, you will need a recent NUANS Report (within the past 90 days).

 NUANS Report $45

A recent (within 90 days) NUANS report is necessary in order to register a Named Incorporated Company in Alberta. We allow you to choose up to three names for us to search. The name will be reserved for you for 90 days from the day of the report

Do you need help selecting the right name for your company? Registering Your Business Name in Alberta outlines the most important points to consider. Or stop into our office; we have been helping entrepreneurs to set up companies since 1998. Our friendly staff are happy to help you choose just the right name.

 Minute Book $66

The Alberta Business Corporations Act (ABCA) requires that Incorporated Companies in Alberta maintain a Minute Book which is located at the Physical Address of the Incorporation and that this location be accessible to the public during regular business hours. Registries Plus can provide you with a Minute Book which includes the Legal Ease Corporate Record Keeping kit. Our Minute Book provides dividers for all required elements of the Minute Book, including:

 Corporate Revivals

If your company has failed to file two or more annual returns in a row, the company will be struck by Alberta Corporate Registry. If your company has been struck or if you have dissolved it and now wish to revive the company, please come in to talk to our Level 3 Corporate Advisor. You will have to file annual returns for all missed years.

 Extra-Provincial Incorporations

Do you own a company which operates extra-provincially in Alberta? You may be able to register an Extra-Provincial Alberta Corporation. Call our Corporate Advisor to learn what is required or just stop in for some friendly advice.

Calgary Business Branding

Your corporate identity is one of the first impression you make on potential customers, so producing a logo, business cards, brochures and a website are among the first things you need to interact with customers. At Bookkeeping by Registries Plus, we can help provide you with a compelling brand package at amazing rates.

Logo – from $195

The first thing you will need is a logo that tells people who you are and what you do. Your logo is the cornerstone of your marketing efforts, digital or print. Our Marketing Manager holds a degree in Graphic Design and has designed many professional logos – including ours!

Call us today for a free consultation. Tell us what kind of impression you want your logo to make and we will take it from there.

Business Card Design – from $60

Business cards are cost-effective marketing tools, but you want a professional design to make sure you are making the right impression.

Brochures, Flyers and Other Marketing Materials – contact us for a free quote

We partner with Vista Print to offer great prices to our customers on marketing collateral to get your business noticed.