Accountant Shenanigans: Derma Wand

For one simple payment of $119.80 plus $14.95 S&H you can purchase the Derma Wand, a pen like device that promises to take years off your face and provide instant rejuvenation.  If one were reading their financial statements it would seem that a large number of people had bought into the hype and purchased their product.  Unfortunately, however, for Derma Wand, it was discovered recently that this was not the case.  In early August, the SEC charged Karl Redekopp, CGA and former CFO of ICTV, with fraudulently inflating sales thereby turning profits into losses. Some of the key details are as follows:

Click to read more ...

Invest in RRSPs or Repay your Mortgage?

One of the most common questions asked by Canadian taxpayers is whether they should use their excess disposable income to invest in RRSPs or pay down their mortgage.  Since contributions to an RRSP are made on a tax free basis,  reduction in taxes payable can be substantial.  Conversely,  higher mortgage payments can result in significantly lower interest expense.  As such, there several factors to consider when deciding which option is better:

Click to read more ...

3 Time Tracking Iphone Apps for Business Professionals

Many business professionals, whether they charge hourly or by project, want a more efficient and accurate method to track and bill time.  This is especially important when you are on the go as you may not have access to your time tracking software.  The iphone has been a boon in this regards in that it provides a plethora of time tracking apps.  The problem, of course, is that finding the right app can be an overwhelming and confusing process.   I have selected 3 popular apps, all under $10, for review:

Click to read more ...

Noteworthy: August27, 2010 - Email Signature, Best Investment Advice, Client Referral Incentives and Questions for Small Business

 

• The art (and science) of email signature

Do: company, website and business twitter account

Dont: personal details, random quote

•  The Best Investment Advice

To increase your net worth - pay off debt that carries an interest rate greater than 5%, don't be afraid to not invest in times of uncertainty and take advantage of cash discounts.

• Incentives for Client Referrals

Discounts, gift certificates and a simple thank you are examples of incentives to get existing clients to provide referrals.

• 7 Questions for Small Businesses

For maximum effectiveness of online marketing strategies, owners of small businesses should (among other things) be checking search engine placement for their business, examine their sources of revenue (are you diversified?), and use social  media to their greatest advantage.

<!--f9b09e13af514549971d9d9071be43e2-->

Tax Tips: Car Expenses and Benefits

Access to a car can be crucial to running a small business effectively.  Costs of ownership, however, can be onerous, especially in the early stages when your business is not hugely profitable.  Luckily, Revenue Canada allows individuals and corporations who use their cars to generate income to deduct the expenses and actually provides fairly comprehensive (i.e. complex) guidance to this end.  Below are some of the main provisions that impact small business owners:

Click to read more ...

Noteworthy:August 24.2010 - R&D Credits, 9 Phrases to Make Customers Happy, Incorporate to Protect your Small Business

• R&D Credits for Small Business

Any business that carries out activities relating to development of a new product or process may be eligible for R&D Credits, up to 35%, on qualifying costs including wages, material costs, equipment and overhead.

• 9 Phrases that Make Customers Happy

"I appreciate your business" and "I can solve your problem" are among phrases that please customers

• Mistake not to Incorporate?

Protection against personal liability is a primary reason to for small businesses to incorporate. 

If you are unable to pay, the landlord could garner your wages, attach your bank account, put a lien on you house, or employ many other methods that would both make you life miserable and damage your personal credit

Tax Tips: Employment Insurance for Self Employed Individuals

In January, 2010 the Federal Government extended  Employment Insurance benefits to self employed individuals/small business owners.  The following represents some of the key details:

Click to read more ...

Noteworthy: August20, 2010 - Mark Hurd "resignation", Startup Considerations and Traits of Happy Entrepreneurs

• Quebeckers not overly interested in wealth creation:

Using 20 indicators, it (Quebec Employers Council) gave Quebec good marks for university graduation, taxation on business investment and spending on research and development. That was offset by the need to do more on the economic integration of immigrants, payroll taxes, labour laws and public debt, the council said in its first report card.

• The real reason Mark Hurd was forced to resign:

Apparently Mark Hurd's "resignation" had less to do with a violation of HP's sexual harassment policy and more to do with Board's fear of bad publicity.  Although improprieties in his expense reports would have given them cause to fire him, they let him resign (along with his $40 million severance) to avoid a possibility of a wrongful termination lawsuit.

• 10 Things to Consider before Starting your Start-Up

The article contemplates factors to consider including before launching a startup including competition, industry, funding and marketing.

• 5 Personality Traits of Entrepreneurs

Thriving on risk, patience and being competent at different jobs are all characteristics of an entrepreneur.

Pricing Small Business Services: 3 Considerations

One of the most challenging aspects of starting a new business is knowing what to charge for your services.  In economics terms, the ideal price is where demand meets supply.  The problem, of course, is that at the beginning we tend to have a lot more supply than demand. This can lead to imprudent pricing decisions. Below are 3 considerations to take into account when determining the price for your services:

Click to read more ...

American Apparel in Trouble

Updated on Friday, November 12, 2010 at 10:49PM by Ronika Khanna

American Apparel  made headlines recently when it's auditors, Deloitte and Touche, resigned recently due to the increased likelihood of "potential material errors to the [December 31, 2009] consolidated financial statements."  Recently, AA announced a preliminary second quarter loss and cast doubt on it's ability to continue as a going concern.  Other interesting details:

Click to read more ...