How The CRA AII Program Increases the Tax Deduction for Computers and Other Fixed Assets
Canadian Income Tax, Small Business Accounting & Analysis, Managing Business Finances Ronika Khanna Canadian Income Tax, Small Business Accounting & Analysis, Managing Business Finances Ronika Khanna

How The CRA AII Program Increases the Tax Deduction for Computers and Other Fixed Assets

In the fall of 2018, the federal government decided to introduce a tax incentive called the Accelerated Investment Incentive (AII). The purpose of this program was to stimulate business investment by increasing the amount of capital cost allowance (CCA) on depreciable property (the terminology, sadly, is a bit less stimulating). In layman’s terms, it means you could claim a higher amount of depreciation on assets such as computer, equipment, furniture etc, in the year of purchase, thereby reducing your taxes in the short term.

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What Small Business Owners Should Know about Leasing vs Buying their Car, Corporate Ownership of Vehicles and Deducting Car Expenses
Canadian Income Tax, Deductions and Expenses, Managing Business Finances Ronika Khanna Canadian Income Tax, Deductions and Expenses, Managing Business Finances Ronika Khanna

What Small Business Owners Should Know about Leasing vs Buying their Car, Corporate Ownership of Vehicles and Deducting Car Expenses

Small business owners who require a vehicle to carry on their businesses are happily able to benefit from a tax deduction relating to the business use of their cars.  Given the potential for abuse, the tax rules for deducting these expenses are fairly specific and extend to the definition of business use, types of expenses that may be claimed, methods of calculating the deduction and whether you buy or lease your car.  While the decision to buy or lease a car can be difficult enough for individuals (a Porsche is so much more affordable when you lease!), small business owners have an even harder time as the tax implications of the transaction have to be taken into consideration.
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9 Tips for Building a Sales Forecast
Managing Business Finances, Small Business Accounting & Analysis, Guides and Tutorials Ronika Khanna Managing Business Finances, Small Business Accounting & Analysis, Guides and Tutorials Ronika Khanna

9 Tips for Building a Sales Forecast

Having a dynamic, regularly updated sales forecast can be essential to the success of a small business. By forecasting your sales revenue you are helping to control for its unpredictability, an inherent risk in any business venture, and prepare for the decisions that are essential to your business profitability. Whether your sales are increasing, decreasing or static, it is always better when decisions are made proactively rather than reactively.

Building your small business sales forecast can be as simple as you want it to be and does not require an accounting degree , particularly when your business is in the early and/or startup stages. Below are some tips to help you create your sales forecast:

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What Are the Next Steps After Incorporation
Canadian Business Structure, Canadian Income Tax, Managing Business Finances Ronika Khanna Canadian Business Structure, Canadian Income Tax, Managing Business Finances Ronika Khanna

What Are the Next Steps After Incorporation

Once you have decided to establish a new corporation, there are certain best practices that you should implement to ensure that your corporation runs smoothly right from the beginning. If you are transitioning from a sole proprietorship to a corporation (unincorporated to incorporated entity), there are some additional steps that you need to take. By being proactive, you can turn your mind to your actual business and avoid unpleasant surprises (such as incomprehensible letters from the government and inconvenient deadlines). This article looks at the next steps you need to take after you have incorporated your business.

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