Frequently Asked Questions
Bookkeeping is one of the oldest professions out there! A bookkeeper is responsible for maintaining your company’s financial accounts and recording transactions generated by the business. They handle the detail work involved in keeping financial data up to date and ensuring classifications are handled appropriately, allowing you to obtain timely reports and ensure government remittance deadlines are met. This differs significantly from the services of Chartered Accountants who focus on analysis and use your transactional data to prepare your tax returns, maximize deductions, assist with financial and business planning, forecasting and modelling.
Bookkeeping is a fundamental aspect of running a business and requires a time commitment many business owners don’t have. To be useful, it must be maintained accurately and regularly within the guidelines laid out by the CRA. When your bookkeeping is not handled correctly, working with a bookkeeper after the damage is done to correct and clean up your books will ultimately cost far more than working with someone qualified from the very beginning!
Any record keeping system is better than none so accounting software is not necessarily required but it is highly recommended. There are many software options to choose from, from free versions to very robust packages that will manage inventory, have ERP and CRM modules as well as online options that make managing your books from anywhere a snap. Software will lead to more accurate information, simplify the recording process and make it more efficient for your accountant to review the information at the end of the year and prepare your tax returns. All of these benefits can add up to savings and make the bookkeeping process much more pleasant along the way.
There are tools available for running payroll manually if you choose to but I highly recommend you maintain a detailed continuity schedule that will ensure you are appropriately prepared to complete all ROEs and T4s as well as prepare your remittances on your required schedule as mandated by the CRA.
That being said, there are a number of reasonably priced options for payroll and ultimately the time saved investing in more automated tools may actually save you money in the end, not to mention it will make managing payroll much more convenient! Payroll software helps to maintain employee records much more easily, helps minimize processing errors, provides significantly better reporting and makes year end filings significantly faster.
In short the choice is yours. Labour can often (but not always) be sourced for a lower cost per hour when hiring someone directly on payroll and many people are not willing provide services as a contractor because they will then be required to manage their own tax remittances and will not receive EI and CPP benefits. Wage subsidies programs are often not available when you contract out so this is another factor to consider if you may be eligible for any programs that assist with labour costs. A payroll number is required when maintaining staff and is not required when you outsource to individual contractors.
Obtaining a payroll number is quite simple but you must have your operation legally registered as a business with the CRA first. You can then open it online through your My CRA Business account or contact the CRA on the phone and have them open it for you. Once the payroll number is opened, the CRA will indicate what your remittance schedule. You are then required to file and remit source deductions withheld from your employees, as well as your company portions, by the due date. Most commonly assigned schedules are Quarterly (due on the 15th every 3 months), Regular (due monthly on the 15th of each month), and Accelerated 1 (due on the 10th and 25th of each month). Remittances can be filed and paid in person at your bank with a remittance slip provided from the CRA, or easily handled online with most major banks through the Tax Filing Payment Services platform.
No I do not handle tax returns of any kind. I generally work with external Chartered Accounting firms to handle year end processing and tax filings for business clients. I do not provide any services related to personal taxes at this time.
I have worked with more than 8 different platforms in the course of my career and am able to work with the software you determine is the best for your business if you have something specific in mind. I primarily select Sage Desktop or QuickBooks Online for clients not already working with software. I can provide subscriptions for both of these platforms and help you determine which is the right one if you have not yet made a selection.
Yes! I offer training services that can help you or your staff take on the basics so simple day to day to tasks can be managed within your company. I can also help you learn about the fundamentals of recording and categorizing transactions and using recorded data to run and use regular reports like your Balance Sheet and Income Statement to support daily business activities and decision making. This is a great option if you want to handle some of your bookkeeping to keep costs down and simply work in cooperation with a bookkeeper to handle scheduled recurring tasks like reconciliations and remittances.
There are many qualified service providers out there and choosing a bookkeeper is a big investment. Bryte Bookkeeping will offer you the flexibility to choose the types of services you need, the software that is right for you and provide support as your business grows and changes and adapt to your needs if you service requirements change. I believe the right fit is key to success and I will work with you every step of the way, and put in place the tools you need to take advantage of all the benefits working with a bookkeeper has to offer. Make Bryte Bookkeeping a part of your team, and let it be the light on your books that brightens your path to achieving your business goals.