What Are You Looking for in an Accountant?

I’m a sole practitioner, which means that I work alone. Someday I’ll have an assistant or two. And maybe I’ll even get ambitious enough to hire an accountant or take on a partner. But I’m not sure about that. I worry about losing the quality of my service and my work. Really! That is my biggest concern with expanding and growing.

choosing an accountantWhile I would love to have the extra income that comes with this kind of growth, I know that it has the potential to change my business, whether I want it to or not. And so I’m careful about that and want to make sure that I do whatever I can to minimize this. Which brings to me another concern: what people look for in an accountant.

It’s tax time. Or at least the beginnings of it. And that means that I’m starting to get calls from people who are looking for an accountant. And every single one of them, so far, cares only about one thing: price. But price isn’t the main factor in having an accountant. Sure, I know at my prices are lower than most professional firms. And for most things, even lower than H&R Block. But most of my clients are small business owners. They want an upfront quote. I’ve been trapped with that before, so am reluctant to give it. Why? Continue reading

Penny Being Eliminated in Canada!

Yup, it’s official. Our penny is now becoming a part of history. As of February 4, 2013 there are no more pennies being made in Canada. This has happened with other coins in the past. Yes, we used to have half pennies. But no-one alive would have used them, as they haven’t been around since 1858.

So what does elimination of the penny mean to business today?

Firstly, it only affect CASH transactions!
Everything that is done through debit, credit, or cheque is still to include the cents.

With cash transactions, as long as there are pennies, then they can still be used.

But they will soon be out of circulation. And to there is rounding that has to be done on cash transactions. All rounding is to be done after adding on GST. Here’s a rounding table for some examples:

Example of rounding for cash transactions:

Total Bill of
Sale Amount
Including
Taxes, Fees, etc.
Rounding Cash
Payment
$1.01 or $1.02 Round down $1.00
$1.03 or $1.04 Round up $1.05
$1.06 or $1.07 Round down $1.05
$1.08 or $1.09 Round up $1.10

 

GST is not affected by the rounding of cash transactions. This means that the net amount that is changed by the rounding of cash transactions will only affect the net income of a business. In theory it should even out to zero.

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