Time to Take a Vacation?: Newsletter May 13th, 2022

Hello All,

I will admit some bias in my title this week. I am currently in the middle of vacation (having written this newsletter in advance) and am hopefully enjoying it without work distractions! Admittedly, as a small business owner, it is difficult to completely detach from work. The line between work and our personal lives is much blurrier and our responsibilities are often weightier. If we don’t respond to a customer or a supplier or a bank on a timely basis, the very existence of our businesses could be at stake or at least the consequences could be significant. Some of us might be able to delegate, but it is often challenging to relinquish control.

Regardless of these challenges, I think that vacations are absolutely essential. We do need to detach completely, for at least a short while, to reset our mental processes as well as our mindset. It is exactly analogous to shutting down your computer, which actually solves the majority of computer glitches (if you would like a laugh, I suggest watching this clip from the very funny “IT Crowd”).

Small business and self employed owners do need some additional preparation to ensure that their business runs smoothly in their absence. It is often worth notifying your clients and other partners in advance, where possible. You also want to set up an out of office message that lets everyone know that you will be unavailable for a specified period. Ensure that you do everything you can before leaving - preparation, like many things in life, is the key to a stress free vacation.

In taking some time for yourself, that ideally involves some type of travel allowing you to be away from your current environment, you can figuratively push the reset button. This will help you be more productive and clears your mind of clutter. One of the other great upsides is that sitting on a beach sipping a mimosa (or however you like to spend your vacation) can allow you to step away, see your business at a high level and appreciate the big picture. :)

Some of you will receive letters from Revenue Canada or Quebec asking for instalments. My post on instalment payments will help you understand what they are, and when they are payable, a bit better.

Small Business Articles/Tips

Business Based on Purpose: Many budding businesses are started with the intention of solving a problem. This article from Entrepreneur suggests starting a business based on your sense of purpose. It is an interesting thought exercise, even for an existing business, and helps you identify your “Why”.

Tax News: Ebay just announced that they will, for all sales by Canadians to Canadians, charge GST/HST and/or QST starting July 1st, 2022. While the details are a bit sketchy for now in terms of how it will work, it is meant to apply to everyone regardless of registration status. According to Ebay nothing will change for sellers that are not registered for sales tax (except additional tax). However, it might change for those that are registered and are already charging them. For those of you who are small suppliers and not registered, it may be worth getting GST/HST and QST numbers to claim back your taxes on purchases. More on this as details become available.

QBO Tip : A big time saver for me when I’m using QBO and looking at multiple reports or transactions at the same time, is to open each QBO tab in a new window. This is better than having to go back and forth in the same window. For example, I will often look at the profit and loss along with the balance sheet concurrently to get a full sense of the financial performance of the company. Alternatively, I might want to see how a transaction that has downloaded to banking relates to the corresponding invoice or bill which is easier when I can just switch between windows rather than hitting the back button.

Books and Resources

Small Business Tax Facts(Sole Proprietorships/Registered Businesses/Self Employed Workers)

This book helps you have a better understanding of tax (brackets, tax rates, deductions etc), how it applies to your unincorporated small businesses and how to do your own tax return (or at least understand what your accountant does). It also includes a comprehensive breakdown of deductible expenses, by category with special sections on more complex deductions such as home office, vehicle and capital cost allowance.

FastStart Your Corporation(Corporations)
A step by step guide to starting your small business corporation, including what you need to know about incorporation, setting up your accounting and tax considerations.

QuickStart your QuickBooks(Sole Proprietorships and Corporations)
A comprehensive guide that takes you through the many features of QBO and gives you step by step instructions on how to setup and work with QBO day to day. It is ideal for beginners who have never used QBO before and also for those who are currently using it, but have questions or need guidance.

FastStart Your Business (Sole Proprietorships)
A step by step guide for anyone who is planning to start a Canadian business or become self employed (and does not want to incorporate) and wants to know what they need to do or simply has questions.

Small Business and Your Dividends (Corporations)
For incorporated small business owners who want to know more about small business dividends, the differences between salary vs dividends and which is better and step by step instructions on how to file your own dividend declarations (T5s).

Use discount code “special” to save 20% on any (or all) book(s) when you purchase from the website.

Please note that all books on my website are in PDF format.

If you prefer a print version, all books are also available at Amazon . Note that print versions purchased on Amazon include a complimentary PDF - you just need to email me and include proof of purchase.

Free Resources

Business 2022 Tax Deadline Calendar
Starting A Corporation Checklist
Start Your Business Checklist
Dividend Declarations Checklist
Small Business Tax Return Checklist
QBO Set Up Checklist.
Small Business Calculators
Previous newsletters.

Consultations

I also provide consultation services where I can answer your specific questions relating to your small business and/or finances, provide clarity and give you guidance. Additional details can be found here and here.

Note that I no longer provide ongoing accounting or tax preparation services.

Reviews/Feedback

• I would love to hear your comments on my current blog posts, topic ideas for new blogs, book feedback or anything else that you want to talk to me about. You can use my feedback form or email me directly at ronika@montrealfinancial.ca.

• For anyone who has purchased my books through Amazon or directly and found them useful, I would be very grateful for a review on Amazon (to leave a review you only need to have an account with Amazon even if you did not purchase the book from there).

• Finally, if you think anyone would benefit from this newsletter, you can send them to my subscribe link.

Wishing everyone the best of luck on Friday the 13th! (and a great weekend of course.)

Ronika