Explore Small Business Finance Topics
Discover our most popular topics for Canadian solopreneurs and small business owners. From income tax and GST/HST to QuickBooks tutorials and managing your business finances, these guides are designed to help you move from financial uncertainty to financial confidence.
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📑Canadian Income Tax
Guidance on filing and planning your Canadian taxes, from T1 and T2 returns to instalments
📊Managing Business Finances
From cash flow to pricing and metrics — learn to manage your business finances with confidence.
🏢 Canadian Business Structure
Should you incorporate? Stay informed on sole proprietorships, corporations, and registrations.
💰 GST/HST & QST
Understand how to register, file, and maximize input tax credits while avoiding common mistakes.
🧾 Guides and Tutorials
Practical accounting processes like reconciliations, journal entries, and reporting.
📝 Deductions & Expenses
Learn which expenses are deductible and how to track them for maximum tax savings.
Quebec Taxes & Business
QST, Revenu Québec filings, Quebec payroll, and provincial rules every entrepreneur should know.
👤 Paying Yourself
Salary vs dividends, management fees, and how to pay yourself from your corporation or small business.
💻 QuickBooks Online & Tools
Tutorials, guides and time-saving tips for using QuickBooks Online effectively.
🏦 Money & Personal Finance
Personal finance strategies for entrepreneurs, from RRSPs to saving for taxes.
How to determine if your business idea Is profitable
I have spoken to and mentored many lovely entrepreneurs who have wonderfully innovative ideas for a new business. But, as any business owner can attest to, starting a new business is hard work. Before even thinking about launching, you need to ensure that the business is actually viable. You do this by assessing your market, reviewing potential demand for your product and analyzing the competition. Once you have done this, you then need to ensure that your business can be profitable.
In order to determine profitability, you need to understand both the pricing of your products and/or services and the relevant costs. This can be difficult to do especially when you don’t have any history. Your only choice is to estimate based on the best information available. In this article, I give you some guidance on the financial information that you need to compile.
3 Tools that allow you to Remotely Connect to your Computer from Anywhere
The past few years, and especially the last year has changed the way many business owners and employees work. There has been a mass adoption of virtual workspaces where people are no longer tethered to their offices. Instead the technology to make working from anywhere has increased and improved significantly and is accessible by anyone who has a working internet connection. Business can be conducted from your home, an airport, a café or (if you are lucky) on the beach.
While many software, apps and programs are available in the cloud and can directly be accessed directly from your computer or smartphone internet browser, there are times when you need access to your actual desktop or another computer so that you can access the programs and data files that reside there. Luckily, there are numerous tools out there that allow small business owners to remotely connect to their computers . Three of these are discussed below:
18 Accounting Terms that every new business owner should know.
When starting a new business, you will be subjected to a variety of financial jargon. This can come from your bank, Revenue Canada or Revenue Quebec, suppliers, customers and various other business partners. If you are unfamiliar with this terminology, these requests which are often quite straightforward, can become stressful if you are not exactly sure what they mean. It is important, therefore, to arm yourself with at least a basic vocabulary of the most common financial and accounting terminology that will give you a better understanding of your business and therefore be well equipped to answer any questions that come your way.
9 Year End Tax Planning Tips for Small Business Owners
For numerous people around the world, the end of this year cannot come soon enough. It has been an unprecedented few months, the effects of which will be felt for many years to come. And while it has been extremely difficult for some small business owners such as restaurants and storefront retail, others have seen their businesses flourish. e.g. toilet paper manufacturers, Amazon and Zoom. Many businesses were able to pivot their business models to provide goods and services that cater to the “new normal” in interesting and creative ways. Some started selling masks while others increased their online course offerings. Beleaguered restaurants started expanding their delivery menus and offerings. To a dispassionate business analyst, this year has been somewhat fascinating and will provide a great deal of data to economists and analysts alike in the years to come.
It is time for business owners everywhere to start contemplating some end of year tax planning tips to not only ensure that they can maximize their tax deductions and reduce taxes payable, but to streamline the tax filing process in the New Year. Even if you are incorporated and your year end date is not December 31st, it is a good time to take advantage of calendar year deadlines for personal tax planning purposes.
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.
4 Simple Financial Metrics to Help Measure the Success of Your Small Business
Most small business owners want insights into their business performance to get a sense of what they are doing well while also trying to understand their areas of weakness. Unfortunately a big picture view does not always immediately reveal itself– a thorough understanding of your business generally requires a more thorough analysis and introspection. You may be tempted to look at cash (or lack thereof) in your bank account or your net profit , however these are not always reliable indicators of success or failure , particularly when taken in isolation. Every small business owner should identify the specific needs and constraints of their business to determine the optimal analysis required to assess its financial performance. Some general analysis that most businesses can benefit from are presented below:
Top 6 Signs Your Small Business Might Need a New Accountant
I met with a small business owner recently who had just purchased a retail business and was looking for a new accountant. It seems that the current accountant was reviewing her books on a quarterly basis, preparing financial statements and doing the year-end tax returns – all typical accountant stuff. The problem was that the accountant, while charging this small business a fairly significant amount of money, was not really adding any value to their business. The bookkeeping, which was done by the previous business owner, was still being entered manually in ledgers (!). The quarterly accounting review consisted of checking the ledgers for mathematical accuracy and ensuring no major deductions had been missed without any discussion regarding the performance of the business. Worst of all, the accountant was not responding to the client’s requests for a meeting to discuss the financial performance of the business
How to Prepare a Business Budget
One of the primary challenges facing a small business owner is uncertainty about the future. (It is also what makes entrepreneurship exciting). We may have an amazing product or service, but we can’t be sure whether this will actually translate into a profitable business model. A budget is an excellent tool to manage uncertainty and, contrary to popular belief, can actually be fairly straightforward to prepare, particularly for small businesses that do not have to worry about different departments, product lines and geographic areas .
A budget, very simply, is a tool that helps you predict your sales, expenses and profitability as well as your cash flow needs. It is based on estimates, which in turn are based on a combination of experience, history and industry knowledge. In terms of presentation, a budget should essentially mirror your financial statements and will include the following main categories:
Employment Insurance for Small Business Owners and Self Employed Individuals
One of the benefits allowed employees working in Canada is that have access to employment insurance. A specific amount is withdrawn from each employees paycheques each pay period along with an employer portion and remitted to Revenue Canada. This entitles them to wage loss replacement, in the event that they are laid off, as well as other benefits. This can be extremely useful in difficult times and has been used by millions of Canadians.
Unfortunately, taxpayers who are considered self employed are not entitled to the same benefits. A self employed individual also includes anyone who owns 40% of a corporation and usually extends to family members of self employed people. By the same token, self employed taxpayers (whether they are sole proprietorships or owners of corporations) are also not required to pay employment insurance (EI) premiums.
The Importance of Breakeven Analysis for Business Owners
When embarking on your new business venture, one of the first and most important concepts that you will be introduced to is break-even analysis which, very simply, is the amount of revenues you need to generate to cover your direct and indirect expenses. A good grasp of this is essential for business owners since even businesses with significant sales revenues can incur losses if they are not able to cover their costs. While break even analysis tends to be used more for businesses that sell physical products, it can also help to the determine the price for services
Investment Strategies for Your Incorporated Small Business
One of the benefits of having an incorporated small business is that after paying yourself a salary or dividend any excess funds can be invested directly through the corporation. Since small businesses often cannot predict how their business will perform from year to year, the ability to retain funds in the corporation allows for a cushion to smooth out fluctuations in earnings which can then be paid out in lower performing years. By keeping the funds in the corporation, the business is able to defer tax since usually the small business tax rate is lower than the personal tax rate. Some points to consider:
How to Set Up a Small Business Accounting System
Many small business owners (myself included) tend to focus on the more glamourous aspects of their business eg. sales, marketing and product/service development. As a result, accounting often does not get the attention it deserves. In addition to the perception that an accounting system does not necessarily add value, it can also be a little intimidating. However, there are numerous benefits to setting up an accounting system and it can actually be fairly straightforward especially if you have some help with setting it up. A good accounting software tends to handle most of the complexity of accounting as long as the data is compiled and entered accurately.
Accounting for Non Accountants : Debit, Credits and Financial Statements
When people hear the term accounting, there is an involuntary reaction whereby the comprehension centres (the medical term) of their brains tend to shut down, and sleep mode is activated. This is unfortunate, as accounting, especially to a small business owner, can actually be quite interesting. It is one of the primary tools by which business owners and other interested parties can gage the success of their business, as well as identify areas that require attention andneed improvement. To understand accounting, business owners need to have a basic understanding of how it works (debits and credits) and it's results (financial statements), explained below:
7 Reasons Why Debt is Good for Your Business
Debt is often perceived negatively. Debt can be “evil”, “crippling” and an “unforgiving master”( the last one from the Google query “Debt is…”;). It suggests a lack of sufficient cash flow and an inability to fulfil your funding requirements. It also an indication of increased risk, as if you are unable to service your debt repayments, it could have dire consequences for your business (see American Apparel). There is however another side to debt. The majority of large corporations have some level of debt. It can be a great way for individuals to earn a return on their investment. And of course it is an integral part of the engine that drives the world economy. For small business owners, debt can actually provide some great benefits as long as it is managed responsibly. Some of these are discussed below:
Why an Understanding of Fixed Vs Variable Costs Is Important for Small Business Profitability
One of the burdens of being a business owner is that you have to develop an understanding of accounting terminology. This might seem sleep inducing and potentially unnecessary, particularly if you have an accountant, however being able to distinguish between fixed and variable costs is actually key to better financial insights into your business and can influence how you determine pricing, help you understand how much you need to sell to start turning a profit and contribute to better cash flow reporting. Additionally it can actually be quite interesting and easy to grasp once you are able to see how it applies to your business.