(Originally posted on March 6, 2017)

 

Home Office Expenses, Can You Claim Them? and What Can You Claim?

 

NOTE: This article concerns home office expenses for a business, not an employee working from home.

 

Owning a small business can have several perks, one of them being the ability to claim the cost of operating from a home office. In effect, some of your living expenses can become a deductible cost for your business.

There are of course a couple of conditions. To be able to claim home office expenses, you must meet ONE of the two following conditions:

1. It is your principle place of business;
or
2. You use the space only to earn business income, and you use it on a regular and ongoing basis to meet clients, customers or patients.

Point #2 is a very sticky one; the space must be a distinct and separate area of your home and cannot be used for any other purpose. In other words, using the kitchen table twice a week for processing paperwork does not entitle you to claim home office expenses.

(Originally posted on February 1, 2017)

 

Ledgers is Opening a New Location in New Westminster, BC!

 

Ledgers Canada is pleased to announce the awarding of a new franchise in New Westminster. Our newest Network Member Gagandeep Athwal is the proud owner.

Please visit their website at http://newwestminster.ledgers.com for full contact information.

(Originally posted on January 10, 2017)

 

Is YOUR Investment in Your Business Secured?

 

When you start your business, you likely apply for a loan; the Bank makes you sign a General Security Agreement, pledging the assets of your business (and likely personal assets) to cover the loan in case something goes wrong.

In other words, the bank is a secured creditor.

The Canada Revenue Agency holds Directors of a Corporation and owners of Sole-Proprietorships accountable for ‘Trust Funds’ – GST/HST and Payroll Taxes. Therefore, CRA is also secured.

Often if you lease equipment or finance equipment through a bank or other third party, they too will likely require a General Security Agreement to protect their interests.

But what about the money you personally invested in your business?

(Originally posted on November 1, 2016)

 

Introducing LedgersShield – Safeguarding our Clients from the cost of Audits

 

Does even the thought of being audited by CRA send shivers down your spine?

Do you lose sleep at night worrying that sooner or later, the CRA or another government body will come calling?

Do you worry about the inherent additional accounting fees associated with an audit?

It is a very common misconception that you will be audited only if you are non-compliant in reporting taxes to the various government authorities. In fact, this could not be further from the truth!

Several things can cause your business to be selected for audit, such as:

  • Late filing of income tax returns
  • Late filing or non-filing of GST returns
  • Filing multiple returns at once
  • Late filing of T4’s and related payroll information
  • Employee complaints to the Ministry of Labour
  • Worker’s Compensation Claims
  • Significant change in your business income or expenses
  • CRA Anonymous Tip Program
  • Random Chance


Face it, it is inevitable; sooner or later, you are going to face an audit by one or more of the government revenue agencies.

(Originally posted on September 5, 2016)

 

Shareholder Agreements – a MUST for Your Business

 

When more than 50% of marriages end in divorce, what would make one think that a business partnership is any different?

Many friends and family members enter into business together with the best of intentions; however, when working along side someone 8 hours per day, 5 days per week, things change…

If this type of situation arises in your business, do you have a Shareholders’ Agreement to protect yourself?

Firstly however, why an Agreement?

The Shareholders’ Agreement provides a framework to navigate within regarding the shareholder’s rights and obligations, and the protection of the interests of all the shareholders in the event of changing circumstances.

What should your Agreement Include?

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