Guidance on Registering for Payroll and Remitting Source Deductions
There comes a time for many small business owners when they decide that they need to hire employees. This is usually an excellent sign as it means a) the business is growing and b) the small business owner has learned to delegate. It also means that additional paperwork needs to be filled out and additional taxes need to be paid. The simplest option when deciding to augment your workforce is to have the new worker invoice the business, based on hours worked or some other formula. Unfortunately, there are very specific rules as to who qualifies as a self employed contractor. Essentially, if your have someone that works full time, has little flexibility with respect to the hours that they work and you provide the tools such as a desk/office, computer etc, then there is a good chance that the tax authorities will classify them as an employee. In this case, where your worker is clearly an employee, you must register for payroll, pay them a salary and submit regular, periodic payroll reports and payments to the Canada Revenue Agency (CRA). As usual, if you live in Quebec, you must submit to Revenue Quebec (MRQ) as well.
How to Account for Bad Debts and Record it in Quickbooks Online and Desktop
One of the more unpleasant aspects of being a business owner is having to chase clients that do not pay. It is frustrating, stressful and disheartening, while attempts to collect are an unproductive use of time and can have a significant impact on cash flow, particularly if you are unprepared. A bad debt, in accounting terms, refers to an amount charged to a customer that is never paid. While the original sale would have been reflected as revenue, the uncollectible bad debt would then have to be written off as a separate line item on the profit and loss statement
How to Use QBO Class and Location Tracking to Better Analyze Your Data
A powerful, but lesser know feature of QBO is the ability to organize your data by using two separate features which are location tracking and class tracking. These features allow business owners to effectively create a higher level of categorization, in addition to their accounts, which allows for significantly better reporting and analysis.
Class and location tracking are essentially classification mechanisms that allow for reporting by an additional layer of categorization. The primary way to categorize transactions in any accounting system is to assign them to specific accounts eg. sales, purchases, computer equipment, travel, meals, office expenses etc. This is referred to as a “Chart of Accounts”. There does, however, exist two additional layers ways to categorize your transactions in QBO which work on top of the chart of accounts allowing each transaction can be grouped into a broader category. This is particularly useful for companies that have separate locations and/or divisions where they might want to see their results grouped together for deeper analysis and a better understanding of the performance of your business or organization.