Getting Ready for a New Year: December 24th, 2021

Hello All,

These past two years have been challenging (at best) for almost everyone. Professor Anthony Klotz of Texas A&M University (allegedly) coined the term “ The Great Resignation” as millions of people have outright quit their jobs (or never went back after being laid off) while others have made other changes in pursuit of a better work life balance. COVID has brought on a great upheaval which has already, and will continue to, reshape the world we live in.

Unfortunately, as variants of COVID continue to emerge, we are still in flux. The path of least resistance is to suspend our plans while we wait until things return to normal. The likely truth is that COVID will continue to impose restrictions and obstacles for an uncertain amount of time. Consequently, we need to adjust and adapt. The new year will not wash the slate clean, but it will bring opportunities that can be leveraged. This can mean that you expand or pivot your business. Or if you are one of the “The Great Resigners”, perhaps start a brand new business. If you don’t already have a business idea, a simple internet search can provide you with a plethora of ideas. Your business doesn’t have to be something new and shiny - just something where demand exists and you know that you make a good product or provide a good service. Alternatively, you can make changes to your career path by pursuing something entirely new or simply pivoting. Employment opportunities in the current environment abound and you might find that you can actually make a small or significant change with far less obstacles.

Regardless of your situation, striving for better financial discipline is an excellent goal for the new year and can be easily achieved with a little motivation and guidance. There are a variety of ways to be better with your money. The most obvious one is to reduce expenses and increase your savings. But, as I discuss in my latest blog post, there are numerous other small changes that once implemented can help to increase your net worth and make you more financially comfortable in the long term.

Small Business Articles/Tips

Key Trends for 2022: This article from Forbes takes a look at some trends that small businesses should be aware including incentivizing employees by focusing on their needs and hybrid workplaces.

Tax Tip A few of you asked me about the tax consequences of leaving Canada and moving to another country. This article from CPA Canada addresses the main implications that should inform your decision making process.

QuickBooks Tip - Foreign Currency Revaluation:

A client of mine couldn’t understand why her business bank balances were negative despite being perfectly reconciled. Upon further review we realized it was because she was using multicurrency in QBO and had not performed a “revaluation” of the foreign currency balances. This is a complex area in any accounting system. Suffice it to say that anyone using multicurrency in QBO needs to revalue their foreign currencies, on a monthly basis, by:

• Going to the gear on top right

• Clicking on “currencies” under lists

• Selecting the dropdown arrow next to the currency being used

• Clicking on revalue currencies.

On my list of future blog posts is one about multicurrency, which I hope to write within the next few weeks. If you have any specific questions, don’t hesitate to let me know and I will try to address them.

Books and Resources

Holiday Sale: Until January 1st, 2022, get a 40% discount if you buy two or more books by using the code “bundle” at checkout.

NEW: FastStart Your Corporation(Corporations)
The 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.

Small Business Tax Facts(Sole Proprietorships)
For those of you want to have a better understanding of tax, 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 somewhat entertaining examples.

FastStart Your Business (Sole Proprietorships)
A step by step guide for anyone who is planning to start a Canadian business or become self employed (as a sole proprietor) and wants to know what they need to do or simply has questions.

Small Business and Your Dividends (Corporations)
Explains what incorporated small business owners need to know about small business dividends, differences between salary vs dividends 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 (doesn’t apply to sale days) .

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

New: Starting A Corporation Checklist
Start Your Business Checklist
Dividend Declarations Checklist
Small Business Tax Return Checklist
Business 2021 Tax Deadline Calendar
QBO Set Up Checklist.
Small Business Calculators
Previous newsletters.

Consultations

I also provide consultation services if you would like specific guidance on your small business or financial situation. Additional details can be found here and here.

Reviews/Feedback

• I would love to hear your insights into existing blog posts, topic ideas for new blogs, feedback on my products/website 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. I’m always looking for ways to improve or provide value (to the extent possible) and this will be most helpful.

• 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 most happy of holidays and a wonderful start to the new year!!

Ronika